tag:blogger.com,1999:blog-735209523627178736.post1688086066985329318..comments2024-01-22T16:29:52.183+05:30Comments on Value Investing: An Intutive Approach to Investing: To Sell Or Not To Sell: My Viewpoints And Few Ground Rules: Part IDhwanilhttp://www.blogger.com/profile/02537043667425952923noreply@blogger.comBlogger17125tag:blogger.com,1999:blog-735209523627178736.post-41490799436811748862015-02-17T02:09:52.727+05:302015-02-17T02:09:52.727+05:30Thanks for this nice article.
With your experience...Thanks for this nice article.<br />With your experience, how many good quality business stocks prices would come down 20% to 30% or more from their top when all parameters are in place?<br />if the answer is say less than 20% than do you feel it is good idea to sell the stock if it goes more than 30% with all parameter reflecting good (downtrend may start that reason may come to know later)? Your thoughts would be helpful.<br /><br />Nivahttps://www.blogger.com/profile/09422257866596389136noreply@blogger.comtag:blogger.com,1999:blog-735209523627178736.post-90890683060844805882014-11-18T17:53:32.020+05:302014-11-18T17:53:32.020+05:30could u read 100 to 1 in stock market .... any les...could u read 100 to 1 in stock market .... any lessons for us from that bookAnonymoushttps://www.blogger.com/profile/11343562017207149162noreply@blogger.comtag:blogger.com,1999:blog-735209523627178736.post-66716502222316996582014-11-12T16:02:11.278+05:302014-11-12T16:02:11.278+05:30Hi Anil,
Thanks for the comments. Look forward to...Hi Anil,<br /><br />Thanks for the comments. Look forward to get your views on the subject as you complete your work on the same.<br />Dhwanilhttps://www.blogger.com/profile/02537043667425952923noreply@blogger.comtag:blogger.com,1999:blog-735209523627178736.post-64929220483392662812014-11-12T15:59:09.057+05:302014-11-12T15:59:09.057+05:30Hi Gouri,
Thanks for the complements. I do acknow...Hi Gouri,<br /><br />Thanks for the complements. I do acknowledge that due to limited bandwidth the frequency of writing new posts have gone down. Will try to get up to speed and increase frequency as much as possible.Dhwanilhttps://www.blogger.com/profile/02537043667425952923noreply@blogger.comtag:blogger.com,1999:blog-735209523627178736.post-72080849748499832512014-11-12T11:42:31.880+05:302014-11-12T11:42:31.880+05:30Good one Dhwanil
Am too working on similar one fo...Good one Dhwanil<br /><br />Am too working on similar one for long time though still WIP.. fully agree on not selling a quality business on fair valuation & temp prob grounds..Anil Kumar Tulsiramhttps://www.blogger.com/profile/08957135865779188117noreply@blogger.comtag:blogger.com,1999:blog-735209523627178736.post-10492683428282097522014-11-10T21:15:28.141+05:302014-11-10T21:15:28.141+05:30Hi Dhwanil,
It is a pleasure reading your posts. ...Hi Dhwanil,<br /><br />It is a pleasure reading your posts. Please post more often.<br />I keep visiting/checking your blog at least once a day and get disappointed most of the time for not seeing anything new :)<br /><br />GouriGouri Mayahttps://www.blogger.com/profile/15723984839350425851noreply@blogger.comtag:blogger.com,1999:blog-735209523627178736.post-88128110147861957732014-11-10T15:54:09.749+05:302014-11-10T15:54:09.749+05:30Hi Vinod,
Thanks a lot. You appreciation makes th...Hi Vinod,<br /><br />Thanks a lot. You appreciation makes the effort of writing more rewarding! <br /><br />Dhwanilhttps://www.blogger.com/profile/02537043667425952923noreply@blogger.comtag:blogger.com,1999:blog-735209523627178736.post-88507274730251074202014-11-10T15:53:15.300+05:302014-11-10T15:53:15.300+05:30Thanks Bharat for posting very relevant thought fr...Thanks Bharat for posting very relevant thought from the investment greats! They are very relevant indeed.Dhwanilhttps://www.blogger.com/profile/02537043667425952923noreply@blogger.comtag:blogger.com,1999:blog-735209523627178736.post-9657539438140530242014-11-10T15:50:01.779+05:302014-11-10T15:50:01.779+05:30Hi Gunjan,
To answer your query on valuation in p...Hi Gunjan,<br /><br />To answer your query on valuation in philosophical sense "the value lies in the mind of the beholder"!! :-) However, on more serious note, what I have realized is that many a times, while defining value, relying "only" on quantitative aspects is not good enough. There is enough evidence in the market about "quality" stocks which by all measures of traditional valuation would look overvalued, however turns out to be highly undervalued in medium term. I am sure you may have read Prof. Bakshi's paper on the subject which has dealt with it beautifully.<br /><br />In terms of what to do after selling a "valuation discount" bet, it becomes a capital allocation question. I personally feel that it is not advisable to keep "minimum" investment or "maximum" cash limits while making investment decision. Because, it forces one to take an sub-optimal decision and hence increases the risk. The key question to be answered is whether at the time of "surplus" cash, does one encounter an attractive investment opportunity or not? If the answer is resounding yes, one should deploy cash else it is better to remain in cash. <br /><br />I acknowledge and accept that due to limited bandwidth on my side, I have not been able to put up the Capital allocation part-2. However, will definitely work on it and put it post part-2 of "To sell or Not to sell".Dhwanilhttps://www.blogger.com/profile/02537043667425952923noreply@blogger.comtag:blogger.com,1999:blog-735209523627178736.post-63982586796417681252014-11-10T15:35:33.628+05:302014-11-10T15:35:33.628+05:30Hi Vikas,
Thanks for your comment. Yes, I indeed ...Hi Vikas,<br /><br />Thanks for your comment. Yes, I indeed posted after quite some time.<br />Good to know that you liked the postDhwanilhttps://www.blogger.com/profile/02537043667425952923noreply@blogger.comtag:blogger.com,1999:blog-735209523627178736.post-74755226176614327072014-11-09T12:34:05.718+05:302014-11-09T12:34:05.718+05:30Dhwanil, very well written, enjoyed reading this p...Dhwanil, very well written, enjoyed reading this post<br /><br />Vinod MSVindyhttps://www.blogger.com/profile/10513923679737187228noreply@blogger.comtag:blogger.com,1999:blog-735209523627178736.post-49503736557016578512014-11-08T14:09:07.070+05:302014-11-08T14:09:07.070+05:30"Even the most thoughtful and steadfast inves..."Even the most thoughtful and steadfast investor is susceptible to the influence of<br />skeptics who yell ‘Sell’ before it’s time to sell…We’ve all been taught the same<br />adages: ‘Take profits when you can,’ and ‘A sure gain is always better than a<br />possible loss.’ But when you’ve found the right stock and bought it, all the evidence<br />tells you it’s going higher, and everything is working in your direction, then it’s a<br />shame if you sell. A fivefold gain turns $10,000 into $50,000, but the next five folds<br />turn $10,000 into $250,000. Investing in a 25-bagger is not a regular occurrence<br />even among fund managers, and for the individual, it may only happen once or twice<br />in a lifetime. When you’ve got one, you might as well enjoy the full benefit."<br />-- Peter Lynch, One Up on Wall Street, p. 253<br /><br />"The investor cannot pinpoint just how much per share a particular company will<br />earn two years from now. As a matter of fact, the company’s top management<br />cannot. Under these circumstances, how can anyone say with even moderate<br />precision just what is overpriced for an outstanding company with an unusually rapid<br />growth rate? If the growth rate is so good that in another ten years the company<br />might well have quadrupled, is it really of such great concern whether at the moment<br />the stock might or might not be 35% overpriced? That which really matters is not to<br />disturb a position that is going to be worth a great deal more later."<br />-- Philip Fisher, Common Stocks and Uncommon Profits, p.83.<br />Bharathttps://www.blogger.com/profile/03205406488944152989noreply@blogger.comtag:blogger.com,1999:blog-735209523627178736.post-20614652773284052412014-11-08T12:44:00.950+05:302014-11-08T12:44:00.950+05:30I meant Part-2 of Capital Allocation is also under...I meant Part-2 of Capital Allocation is also under works.<br />:) Gunjangunjanhttps://www.blogger.com/profile/16353392303782060158noreply@blogger.comtag:blogger.com,1999:blog-735209523627178736.post-72984816102146823212014-11-08T12:41:22.220+05:302014-11-08T12:41:22.220+05:30Very insightful.
Brings on the question of how on...Very insightful.<br /><br />Brings on the question of how one defines value? valuation discount vs. business quality.<br /><br />Also, if possible can you share you thoughts on what should one do "after" selling a valuation discount bet. Typically at that point of time, if its a bullish run, other similar bets may have become scarce. Do you think having a "minimum" invested (or "maximum" cash) constraint is also relevant. <br /><br />Would love to read more of your views on Capital Allocation.<br />Hoping Part-2 is under works :)<br /><br />Gunjangunjanhttps://www.blogger.com/profile/16353392303782060158noreply@blogger.comtag:blogger.com,1999:blog-735209523627178736.post-31778782477818693842014-11-08T12:21:11.753+05:302014-11-08T12:21:11.753+05:30Hi Dhwanil,
Good to see a post from you..after lo...Hi Dhwanil,<br /><br />Good to see a post from you..after long time :-)<br /><br />Loved the way you used different ideas/examples to support your thought process.<br /><br />Good work.<br /><br />Thanks,<br /><br />VikasVikas Ranahttps://www.blogger.com/profile/05508406035178681504noreply@blogger.comtag:blogger.com,1999:blog-735209523627178736.post-26228727786883878222014-11-07T15:16:48.384+05:302014-11-07T15:16:48.384+05:30Hi Ankur,
Thanks for your comment and feedback. W...Hi Ankur,<br /><br />Thanks for your comment and feedback. Will post the "when to sell" part soon. <br />Dhwanilhttps://www.blogger.com/profile/02537043667425952923noreply@blogger.comtag:blogger.com,1999:blog-735209523627178736.post-29283105328894862132014-11-07T09:37:46.800+05:302014-11-07T09:37:46.800+05:30Hi Dhwanil,
Nice post.
You have hit the nail on ...Hi Dhwanil,<br /><br />Nice post.<br /><br />You have hit the nail on the head by first writing about when not to sell. Will wait for your thoughts on when to sell.<br /><br />Regards<br />Ankur Jain<br /><br />Ankur Jainhttps://www.blogger.com/profile/12543846758518347864noreply@blogger.com