Daily posters

Acrysil- BSE-524091

Acrysil (India)

BSE: 524091|ISIN: INE482D01016|SECTOR: Plastics 

Nov 14, 17:00

120.00

 Acrysil- Manufacturer of the upper end quartz mineral kitchen sink "Carysil". the sink  are manufactured using cast by means of computerized polymerization casting process which give flexibility in design and finish.

1. Majority of their production is exported to German based Schock and Co. who also hold almost 10% public holdings..
2. Quartz Mineral is is one of the most abundantly available minerals on the earth.
3. Company has consistent ROCE and ROE. Also the company has a generous dividend policy
4. Retails holding of stock (<1lakh) is high 24%.
5. Company is starting to concentrate in the domestic market and expand its presence in different kitchen appliance.

Will Acrysil be a multi bagger like TTK prestige and hawkins. well my guestimate is probably not. Acrysil product are niche high end markets. untill the company expands into more mass marketable products its is highly unlikely to compete with the heavy weights.
much better the company concentrate its energy into its core products and expand its presence and margins.
As of now its added to my watch list and see how it develops.

Whats that noise.

Switch on the TV and your are bombarded with continuous stream of information and analysis. its good to hear what going on in the outside world only if you have the sense to weed out the rubbish that gets thrown at you.
cutting out the noise and listening to what is relevant is natural ability. understadin this doesnt mean we cant develop this skill.
yess its a skill and therefore can be learnt and developed.
keep a clear objective of why you are doing this excessive. most developed investors start with the tagline, "why we shouldn't buy this stock?"
First list out all the standard measure that are easily identified (sales, net profit, EBITA, cash, debt). compare with other industry peers or other value parameters (PE ratio, profit growth, debt ration, net sales, etc). then look for anomalies

A place to die

Charlie munger"All I want to know is where I will die, so I don't go there"

Profound words from Charlie. As a investor our greatest risk is not temporary loss of return but permanent loss of capital. We have to continuously educate ourself about the risk that exist. Mr. Market, macro econimcs, government policy, corporate governance, moat, etc are all highly visible roadblocks which a retail investor has to look into.

But more dangerous and ever present risk is the investor himself. Behaviorial investing. An investor has to learn more about himself so that he can tailor his portfolio needs according to his personality. The investor need to understand his own bias not to change them but to limit the risk that arise.

Ben Graham "The investor’s chief problem – and even his worst enemy – is likely to be himself.” "

If you want to fly.....

The Falcon--------Story with a Good Moral !!

  Once there was a king who received a gift of two magnificent falcons from Arabia. They were peregrine falcons, the most beautiful birds he had ever seen. He gave the precious birds to his head falconer to be trained.

Months passed and one day the head falconer informed the king that though one of the falcons was flying majestically, soaring high in the sky, the other bird had not moved from its branch since the day it had arrived.

The king summoned healers and sorcerers from all the land to tend to the falcon, but no one could make the bird fly. He presented the task to the member of his court, but the next day, the king saw through the palace window that the bird had still not moved from its perch. Having tried everything else, the king thought to himself, "May be I need someone more familiar with the countryside to understand the nature of this problem." So he cried out to his court, "Go and get a farmer."

In the morning, the king was thrilled to see the falcon soaring high above the palace gardens. He said to his court, "Bring me the doer of this miracle."

The court quickly located the farmer, who came and stood before the king. The king asked him, "How did you make the falcon fly?"

With head bowed, the farmer said to the king, " It was very easy, your highness. I simply cut the branch where the bird was sitting."

Moral :-

We are all made to fly - to realize our incredible potential as human beings. But instead of doing that, we sit on our branches, clinging to the things that are familiar to us. The possibilities are endless, but for most of us, they remain undiscovered. We conform to the familiar, the comfortable, the mundane. So for the most part, our lives are mediocre instead of exciting, thrilling and fulfilling. So let us learn to destroy the branch of fear we cling to and free ourselves to the glory of flight.

PS: i decided to cut my branch

Back to Basics-Contingency Fund

For any successful financial life, we need to follow some basic common sense foundations.
Assuming you are a retail investor who lives on a fixed income and no toxic debts, the the first thing in your mind must be to have a liquid contingency fund at your disposal.
Why?
Assume your income(salary, rent)is not available due to varied reason, then you need to take care of your fixed expenses (rent, food, school fees, insurance)
How much?
Ideally minimum six months maximum one year of your total fixed outgoings.

This fund should be in a easily accessible location (cash in bank, cash certificates)

Where to Invest?

"to each his own poison"

Most of us look forward to invest our money in a investment that will give absolutely outstanding return and NO RISK. Although these type of plans exist, usually its the sales agent that enjoys the benefit of the plan.
We Indians have a obsession with real estate and gold, which is understandable as the they have give steady returns over the years.
A small minority of us have decided to venture into a gamblers den with its opium infused air called stock market. Once your lungs are filled and the blood start to flow "you can never leave"
Some advantages that gives us stockoholic are small cash entry, full and accurate view of your investment & liquid access whenever your need.
Add to this the promise of real return and a life long passion.
The life examples of the great investor shows us that if your disciplined and follow a sensible approach to buying stock then your are assured healthy payback in the long run.

Mid cap magic or blue chip boredom

Which is a more successful long term mantra. Does investing in mid/small cap stocks where the business growth might be phenomenal and give the investor a high return makes sense.Typically these investments are high risk high gain and require a lot of due deligence in terms of research or just plain dumb luck and timing. Be ready to lose your shirt incase the markets change coarse. 

Other hand investing in Blue chips are straight forward affair where even if you purchase at a fair value you can expect only a half decent return. The large caps are high traded and analyzed and require very little imagination from the investor. Juts park your money and watch the paint dry.

Are you better fund manager?

Are you a better fund manager? Do you rate your stock picking skill highly? Do you have a portfolio that is GREEN all the time? Do majority of the stocks in your portfolio out perform the benchmark index everyday? Do you think you can put better use of your savings than professional fund manager who knows the ins & outs?
Do you have the ability to hold on to your stocks in case of a crash? Do you have the discipline to continue investing regularly into the markets? Do you have faith to hold on to our stocks when they are constantly in the lower circuit?

Most of all, can you look at the man in the mirror and tell him the truth?

Irrational ? Nifty Closes at life highs on Diwali 2013

Capital markets closed at life highs or closer on Samvat 2070. Diwali 2013 did have some fireworks propelled by select large caps that took the markets over. Analyst have as usual differed views which i summarized below.
1. Market are on well deserved late bull run, but be careful.
2. Markest is high on easy money/high liquidity infused by FII, so be careful.
3. Markets didnt grow at the same pace of the economy for the last three or so year so they are catching up.
But my favorite is that we just had a some extra Diwali bonus and so...

Meanwhile i am sitting with a large bait waiting for the fishes to bite.