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what is the target this month-will it cross 100?...
RJ on investing in Warren Baffet style
Posted by :
alkesh_thakkar
If you`re a proponent of value investing, which involves buying stocks that offer value when they`re cheap and holding on to them till they achieve their potential — Warren Buffet style — here are tips from India`s own Buffet, Rakesh Jhunjhunwala, that you may use.
— Jhunjhunwala`s advice to investors is not to look for companies that would give profits but understand factors that help in creating profits. "Don`t emphasise too much on analysis of profits," he says. "Profits are created due to various stages of circumstances. I always look at how large is the opportunity for that business in the sector."
He recalls how he bought Praj Industries, a bio-ethanol company that gave him large returns. "When I bought Praj, we thought there would be a humongous demand for ethanol. The opportunity was huge but it was not recognized."
IT bellwether Infosys, he said, benefited because of the internet revolution. "Nobody knew about Infosys in 1993 but Infosys could become Infosys because the opportunity for the internet went through the roof."
"When opportunities come, they can come through technology, marketing, brands, value protections, capital, etc. You need to be able to spot those."
— "Then I look at scalability of a particular company that I choose in a sector," Jhunjhunwala says. "A friend of mine asked me: should I invest in a small cap or largecap? I said we must invest in the smallcaps, which will be largecaps. The biggest challenge of investing is that you should recognise whether an organization has the ability to scale."
Jhunjhunwala says he makes an investing decision by understanding how a company`s profits may grow in the next four-five years, and by that account, its price-to-earnings and valuation. "If I succeed in making the right call, then after four-five years, I do a proper re-examination of the business model and accordingly reallocate capital because the business model can undergo change. Intense competition could emerge in that sector," he says. "This is when I examine the earlier opinion I had made when I first bought, whether those assumptions still were valid."
— How should you spot a good company? "You can have an idea by looking at companies` capital raising. Are they distributing profits, are they using the surpluses in the right manner," he says. "For me, quarters don`t matter. There can be always be an aberration in one quarter when the company has less profits. You should examine the reason for it and whether it can revert back on its growth."
— Choices of asset classes is important too, says Jhunjhunwala. "If you bought gold in 1970 and sold it in 1980. you bought the Nikkei Index in 1980 and sold it in 1989 and then bought the Nasdaq [till before the dotcom bust], you would have made 33% compounded returns in three decades," he says. "Warren Buffet rode the entire wave of those different asset classes."
— "Value investing is relevant in all circumstances. But thought processes and principles are dynamic and not static. Be open to change," he says.
— Don`t get carried away short term market trends, he says. "In 1999, people used to buy Himachal Futuristic, Silverline , Global Tele, Pentasoft, I used to buy Shipping Corporation and Bharat Electronics because I saw long-term value," he adds. "Never get carried away by aberrations, recognize and respect them but do remember that the market corrects its aberration though it takes time."
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now you see the movement !!! outperform when market making profit book....
Its very strong today target 95
Posted by :
jags752Yes proj is strong today its maitaning its support of 90 it went up 92.20, market is little neagative, afternoon when market bounce back proj will touch is target, Mediam short term target 104 if it cross 99, best luck investors...
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Posted by :
NAUGHTY007the stock is stagnant since 12/11 why?...
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Posted by : retrobroker105 LEVEL will come only if it crosses 98 levels...and it has stiff resistance there..this stock has been under performing markets ...at 4500 nifty this was at 85 levels....and hasnt moved.......
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Posted by : bharat in delhidear vkr4me,you are right.105 level is not difficult to comeby,regards...
its depend upon you to wait for dip or make a profit from current level ie 20%...
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Posted by : NAUGHTY00783 levels will come if nifty falls 200...
Don`t buy
Posted by : rajeshjoshinaYou can have this stock abt 83 so please don`t buy NOW...
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Posted by : NAUGHTY007what r the next weeks targets...
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Posted by : NAUGHTY007has the etanol story over in one day...
Promoters should return back from vacation;
Posted by :
singadiLooks like you are the biggest idiot....If promoters who owns the company do not strategize the business well...the profit and sales plummet...Who do you think should be bothered about the company other than promoters. Looser go to hell......
Promoters should return back from vacation;
Posted by : confusedbull
dear sir,
i guess ur very new to this market....just check out pyramid saimara,,,wat promoter did to tat company is the answer to your question...this is wat a promoter could do to a company...grow up kid
regards...
