Warren Buffett in his younger days followed a technique called coattailing
In this method, you usually follow an experienced investor into a stock.You assume that the experienced investor knows what he is doing and financial fireworks will commence shortly after the experienced investor enters the stock.
Are there such investors in the Indian equity scene that one can follow?
I believe there are.
Take for example, Dilipkumar Lakhi.
He is a very well known diamond exporter from Mumbai (see article). He is quite renowned for his shrewd stock picking prowess.He picked up Uflex very cheap in Dec 2009.(still owns around 4% assuming fully diluted)
Now he has picked up around 6.75 Lakh shares of Dhanbank around Rs.70.33 . (27/02/2012). Another related party Girdharilal Lekhi has picked up 5.4 Lakh shares around Rs.63.66 (23/02/2012)
Dhanbank faced a lot of turbulence recently due to the ouster of its CEO Amitabh Chaturvedi. Despite this ,the stock is up around 22% since then.Maybe Dilipbhai and the markets know something we don’t !!