Ashish Chugh Revealed the 10 Hidden Secrets of Stock Market Success That Even IIM and Harvard Can’t Teach You

Investing

Millions of people try their luck in the stock market, but very few actually make money.

Why?

It’s not the mathematics or the knowledge of finance that matters; there are some other factors that drive success in the market and no else can reveal this better than Ashish Chugh, the veteran Delhi based investor who always talks sensible thing whether it’s euphoria in the market or carnage.

He is so calm and composed as if like a saint who has obtained salvation or moksha! The best part is that he is always eager to share the secrets of his success on a platter absolutely free!!

Nowadays he stays away from the television and limelight but whenever he speaks one can’t just afford to miss it.

Only a Guru who himself knows the secrets and obtained success can guide on the right path. It becomes all the more important when suddenly everybody is bleeding in the market mayhem. Let’s know what he has to say.

First, temperament is the most important. It is something more important than the education and degree. How you behave when euphoria in the market and how you react when the stock market is going through a phase of extreme pessimism and depression in the bear market is what matters the most.

The second and the most important thing is the ability to remain comfortable when miserable— matters a lot. As an investor you will go through a prolonged phase of a bear market when you’ll find that your investments are bleeding. Portfolio may be down by more than 50%.

That is a point where your patience is tested as an investor. This is like an exercise—to enjoy the fruits of an exercise you need to go through a phase of discomfort. Same applies to investing also. If you really want to enjoy the fruits of higher investment returns, you must go through the bear phase of the market cycle.

Third, one should take the onus of his actions. Rather than blaming Mr. Market, you should take the onus of your actions. You can’t blame broker, analyst or anybody else. So, spend more time doing your homework.

Fourth, don’t clone big investors blatantly. Whenever a big investor takes a position in a stock, retail investors scramble to buy it. This is not an advisable action at all. The focus should be on selecting those stocks that will elicit the interest of big institutions in the stock.

Fifth, the biggest lesson I have learned is to invest in a good management. This becomes all the more important when you’re investing in a small cap. Very little information is available in the public domain regarding these managements. In that context, you should observe the actions of the management in the last 5 years closely.  A good management has always a skin in the game. So, the promoter’s stake should be very high in the company.

Sixth, they should be able to grow business consistently with no equity dilution. They should grow business with internal cash flow and may take a reasonable amount of debt.

Seventh, if a company is sharing the benefits with investors through dividends and share buybacks, it’s a good sign of ethical management.

Eighth, Stocks should not be construed as merely a ticker symbol. You have to consider it as a part of a business. Without holding stocks for a considerable time, you can’t create wealth.

Ninth, one should always focus on both valuation and growth of the business. Earlier I used to look to buy value stocks, now I have realized that a value stock will always remain a value stock if there is no growth.

The common characteristics in all those stocks that have turned multibagger are that they have consistently clocked growth in sales and profitability. A growth stock may have slightly higher valuation, but it is worth it. And if you are able to buy it at a reasonable valuation, nothing can be better.

Tenth, Understanding the risk factors in the business is extremely important. I’m always looking at the downside if things don’t turn the way I expected. It is important to know how much money you can lose if your investment doesn’t perform.

The biggest returns come when a stock is out of favor and facing a temporary negative sentiment.  I love picking the mis-pricing theme when picking a stock. Mis-pricing can be due to a variety of factors. Some of them can be genuine and some may be market perceptions. If the negatives are of short-term or curable, I’ll go for it provided other criteria are met.

Thanks sir for your wisdom for novice investors like us!! This becomes all the more important when market is panicking. 

(The blog is inspired from his recent interview with ET Money Podcast)

 

Is Avenue Supermart Overvalued?

Investing

Avenue Supermart growth rate is superior to that of consumer companies. These companies like Hindustan Unilever and Nestle have double the market capitalisation of Avenue Supermarts. Even the consumer companies are nowhere near Avenue’s growth rate.

3-year average growth of sales for Hindustan Unilever is 7% and Nestle is flat, the average 3-year sales growth of Avenue Supermarts is 37%. Thus, while the P/E of Avenue Supermarts seems high, its growth compared to the well established players in the sector, is in a league apart. It could even be among the top five fastest-growing large companies in India.

If Avenue is overvalued then what about its struggling competitors. Just imagine how much profit it will earn if it will have 500-1000 stores. Walmart has 4100 stores. But Big Bazar has 260 stores only.

This is Where Porinju is Betting

Investing

Porinju V Veliyath,the ace investor, has bought a huge number of shares in  Som Distilleries and Breweries (SDBL) at a price of  Rs. 197.95. Veliyath’s EQ India Fund also bought 500,000 shares in the company.

Cimmco Limited -is a railvagon manufacturer and it is alsopart of the Porinju portfolio.  Recently, he has cut his holding in many other companies that includes  Parnax LabPalash Securities and JITF Infralogistics.

He has also bought shares in Agrotech Foods. It is to be noted that his portfolio suffered massive loss in the recent carnage.

Want to Know Which Stocks Ashish Kacholia is Betting on?

Investing

Ashish Kacholioa is an astute investor and stock picker. He knows how to make money in the game. He has made many well-timed picks that has earned him big returns. In the latest quarter, he  has invested in realty company CHD Developers, buying a 5.64% stake worth over Rs. 12.7 crore.

He has  also invested in Mirc Electronics  at 48 Rs. Though the stock price has corrected a lot in the latest market correction.

The ace investor   has also raised his investments in key stocks, including Butterfly GandhimathiPoly MedicureEster Industries and Vishnu Chemicals.

Both Buttefly Gandhimathi and Shaily Engineering in particular has given astounding return in the last one year.

Both Ashish Kacholia and Dolly Khanna are Bullish on This Stock

Investing

Ashish Kacholia and Dolly Khanna are ace investors  and they are known for his stock ace-picking. Their portfolio has delivered huge return in the last one year. However, one chemical stock features in the portfolio of both of these investors and it has also brough mega gains for them.

Interesting thing is that Ashish Kacholia has been consistently increasing its weightage in the portfolio. He has started with 2.82% holding in March 2017 to 4.04% in March 2018.

We are talking about NOCIL. It is the most significant investment of Ashish Kacholia’s portfolio and comprises a significant weight of 13%. It has delivered 62.5% return in the last year.

Even Dolly Khanna is quite bullish on the stock and it consists 7.8% of the total portfolio. Nocil is a leader in the speciality  rubber chemical space and maintains strong margins despite rise in the price of petroleum products.

Mutual funds are constantly increasing the stock holding on the monthly basis.

January 2018–53 lakh

February 2018–59 lakh

March 2018–68 lakh

April 2018–69.26 lakh

No mutual fund has sold it in the last four quarters and BNP Paribas has added in its scheme recently.

 

 

Views on Midcap Stocks

Investing

The mayhem in the market is continued. Midcap stocks have witnessed correction up to 50 percent. Though, market as a whole has not corrected much, midcaps and smallcaps have been ruthlessly butchered.

Dilip buildcon, a leader in road constructrion, has seen massive correction. Though,company has posted steller quarter. Unconfirmed rumours about auditors resigning and other issues went heavily on it.

There is, however, no difference in the fundamentals of the company. It’s a good opportunity to buy the company at this price.

Prakash Industry is not a great company, but its also at attractive price. International steel prices are still high and it will give a good return in 1 year.

Vakrangee, i accept my mistake, fell like a pack of cards. I promise to stay away from such stocks in future.

I added some stocks of Edelweiss at 299 and sure that its a high quality management. Also added Jindal Saw, Future Consumer Limited, TCS, Indusind Bank and Jindal Steel and Power.

Overall, I lost big money as DBL was 33% of my portfolio. I reziged my portfolio and reduced the weight of infrastructure,added some largecaps, consumer stocks.

 

Bitcoin Price Prediction

Investing

Bitcoin saw a wonderful run and touched $9000. It is, however, hit the major resistance and supply zone and may fall since it failed to cross the supply zone. There is a good possibility of it touching the first support zone of $8568-8650 or $8123-8222 in few days. However, traders should be cautious here and wait a little to see the further trend.

Bitcoin

The price has been continuously going upwards and some correction was imminent. See thee supply and demand zones in the above picture.