Here’s something new I have initiated to share with you stuff I am reading and thinking about in recent times.
Click here to download the document.
Let me know your thoughts on the initiative, and what else you would like to see here.
Archives for February 2019
How to Screen for Stock Ideas
While I am not a big fan of using readymade screeners to generate stock ideas – because you tend to substitute thinking with a lot of data – simple screeners still help me in doing the initial groundwork.
Also, while there are a few paid (and expensive) screeners available in the market – like Ace Equity, Capital Line – I find a few free screeners to be very effective when it comes to the value I can derive from using them.
In this post, I explain the few steps you can use while running once such free screener – Screener.in – to do basic analysis on companies and screen for high quality ideas. Let’s start right away.
My Talk at Value Investing Summit, Kuala Lumpur
I recently spoke at the Value Investing Summit in Kuala Lumpur, Malaysia. My topic was ‘The Path of Successful Investing.’
Click here to download the presentation.
Click here to watch the video of my talk, or watch below.
P.S. In the talk, I quoted Peter Bernstein’s book Against the Gods as containing the story of the hedge fund LTCM. It was a mistake! The book that chronicles the story of LTCM is Roger Lowenstein’s When Genius Failed.
Statutory Warning: Nothing in my talk should be construed as investment advice to buy or sell shares. Please make your own decision, as blindly acting on anyone else’s research and opinions can be injurious to your wealth. My analysis may be biased, and wrong. I have been wrong many times in the past. I am a registered Research Analyst as per SEBI (Research Analyst) Regulations, 2014 (Registration No. INH000000578).
Wall of Ideas
Welcome to Safal Niveshak’s Wall of Ideas, where I present hand-drawn illustrations of a few thoughts on investing, learning, decision-making, and living.
The permanent home of these illustrations lies here, where all my future updates will happen.
If you like what you see below, please share your love in the Comments section of this post. Also, please share your ideas for future such illustrations.
Sharing the illustrations socially – Twitter, Facebook, LinkedIn, etc. – would also help spread the word. Thank you!
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The Low-Priced Way to Lose Money in the Stock Market
Once upon a time, I used to recommend stocks. I did that for a living.
One of the most common questions I received when I recommended a stock priced in three or four digits was this – “What is the point of buying a stock this expensive? Recommend something under Rs 100, or better, Rs 10, or better, Rs 5.”
The reasoning was simple – “It’s easier for a Rs 10 stock to go Rs 100, than for a Rs 1,000 stock to go to Rs 10,000.”
At the start of my career, this reasoning sounded reasonable. But it turned out to be one of the biggest misconceptions I’ve ever had in my career as a stock analyst and investor. Thankfully, I got over that misconception early.
Of course, a car that sells at Rs 20 lac may be more expensive than one that sells at Rs 5 lac, even when you discount for better features etc. But a stock that sells for Rs 2,000 or even Rs 20,000 is “not” more expensive than a stock that sells for Rs 20 or Rs 200, just because of its price tag.
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