Our Strategy

The Aim of StocksBazaar:

• Identify stocks that can multiply by many folds in the long run. 

• Take advantage of  value buying opportunities  in the short/ medium term( the stocks available at low prices v/s their present intrinsic worth). These will be more sensitive to news, earnings in short term. 

• Riding a better horse (stock) will give you better portfolio and sudden multiplying jumps. Constant movement/shift to better horses (though not frequent) will be our evergreen strategy in bear, bull & flat markets.

•     One cannot predict a growth stock and simply sit tight on it without being alert, hence relentless search for a good company, continuous review of company's performance, news, expansion and other future plans, aggressiveness, changes in economic & technological environment etc. will be key to remain with the right stocks.

There have been many stocks which have multiplied investors wealth by many folds in a span of few years. Some examples are :

TCS, Pidilite, HDFC, HDFC Bank, Kotak Mahindra, Blue Dart, Supreme Ind. Titan, TTK Prestige, Cera, Hawkins, Infosys, Cello, Relaxo, Eicher, Crompton Greaves, Hero Moto, Sun Pharma, Asian Paints, Amara Raja, Lupin, Shree Cement, Dr.Reddys, Aurobindo Pharma, Astral, Page Ind. Havells, Wipro etc.

 One of the prime examples we recall of the year 2000-2002 is of Eicher Motors. Based on our suggestion, few acquaintances of ours had purchased shares of Eicher Motors between the price range of INR20-50. During our visits to Eicher factory, it was clearly visible that the company was a forward looking and professionally managed company. Eicher did not miss opportunity to buy Enfield when Enfield was struggling. It later partnered with Volvo. All the above steps proved crucial stepping stones for Eicher to become very successful.

 On checking the current share price of Eicher one can notice the mind boggling returns that it has generated. Rs.35,000 invested then (2000-2002) for buying 1000 shares is worth Rs.180 lakhs today (Nov.15). Please note:-

1     Will you sell off your portfolio completely and book loss if portfolio value goes down in short term? 

If yes, then better avoid the share market.  In a sluggish phase prices can go down continuously for months/years together. The pain of loss is twice as compared to the joy of profits. Hence invest only a part of spare money.

2.    No doubt many of long term stocks also work out to be excellent in short term. So, partial profit booking should always continue.

3.    Don't buy an intended stock quantity 100% in one go. It should be bought in small quantities over a period of time.  Similarly do not sell 100% holding of a stock in one go. 

4.    No single stock should form more than 5% of your portfolio value.

5.    Let there be 2 portfolios one Core portfolio for long term multiplications & second Satellite portfolio for trading opportunities.

6.    Core (Long term) portfolio may not attract income tax, so keep it in name of higher earning member. Satellite (trading) portfolio will attract more taxes due to trading so better to keep in name of lesser earning spouse.

7.    If you do not want to maintain 2 portfolios. You can treat a part of the portfolio as Core and part as Satellite.

Aim for catching growth stocks:

1.  Stock Market is giving golden opportunity to build up a portfolio for your children. Whenever you invest for long-term, the stocks turn out to be good even in short-term.

 2.  Reshuffling the portfolio --You can put in more money to buy shares as the prices fall, taking advantage of the opportunity or if you do not want to put in more money, you can change horses (Reshuffling the portfolio). That means selling a little quantity of some shares which has not fallen much/has gone up and buying those which have fallen much more (keeping in mind the medium-term and long-term projections given by us against each stocks).

3.  Excellent growth stocks (Great companies) picked up at right price, fall less and rise more. For example, the maximum price was down by 11.5%, in 2 stocks out of 10 such stocks covered during last 3 months at 'Aggressive Multiplier', where as you may have noticed a fall of 30-40% in commonly talked stocks.

A. On the contrary some stocks were up there, even during these difficult times. Some of our subscribers who had bought growth stocks have booked profit of more than 20-35% in just 1 to 3 months even in this falling market.

B. We recommend only those stocks which are fundamentally sound and which become even more valuable at lower prices. Please don't believe in stop loss for these strong shares.

C. We are very confident of our recommendations and projections. Hence, keep accumulating at every opportunity. However, value of a single company should not form more than 8% of your total portfolio value.
 

4.  Never buy the desired quantity in one shot, stagger it. Similarly, do not sell entire quantity in one shot. Buy more in small quantities if prices go down further.

5.  Aim for multiplication : - There have been many stocks that multiplied investors’ wealth by many folds in a span of few years. Some examples are  Pidilite, HDFC, Kotak Mahindra, Blue Dart, HDFC Bank,Supreme Industries, Titan, TTK Prestige, Cera, Hawkins, Infosys, WimPlast(Cello), Relaxo, Eicher, Crompton Greaves, Hero Motors, Sun Pharma, Asian Paints, Amara Raja,Lupin, Shree Cement, Dr.Reddys, AurobindoPharma, Astral, Page Industies,Havells, Symphony, Pidilite(Fevicol), Wipro etc.

Rs.1.00 lakh invested is worth:-

(While calculating returns, prices as on Jan.15 were considered. Inputs taken from the analysis prepared by Mr.Ramdeo Agrawal)

Disclaimer :- Past performance cannot be an indication of future trends.