My style of equity investing is a BUY and HOLD style. I have extensively read and studied Warren Buffet’s style of investing and have been investing in direct equities since 2000. I look at investing in market leaders in growth industries with capable managements and good profitability ratios. I invest in companies like Marico, Dabur, Asian Paints, HDFC bank etc. These stocks are likely to give a 15-20% return per annum -and that is my aim – 15-20% per annum.
These stocks are well known to everyone and are always selling at a premium – hence the task is to find out the price at which it is worth buying. I do my own valuation exercise and once I find the price attractive, I buy as much as I can (max up to 10% of my portfolio). And I keep investing in these companies over years (at different price levels).
You can get more about my style of stock picking and my valuation methodology in these presentations made in Bangalore stock exchange.
You can also get much more detailed explanation of how I select a stock and value it in my book.
I also want to disclose that I am not a SEBI registered advisor and the stock ideas mentioned here are stocks where I have invested myself. The purpose of these posts (as also this website) is to share with my readers investing ideas. Please do your own analysis before you invest. I want to disclose that I have not received any compensation from these companies discussed here.
The stock ideas here are dated and hence please be aware that they may not be relevant today. If you want, please register your mail id here and you will get all the investing ideas as soon as I post it.