Some stuff I am reading today morning:
Supreme Court slams Jaiprakash Associates (FE)
Income Tax Act set for overhaul (Mint
Tweaks in IBC code to block wilful defaulters (BS)
SAIL raises its game (Quint)
Anil Agarwal: India’s mine sweeper (Forbes)
The year of living dangerously (TRB)
Grandma’s bond portfolio is in trouble (Macro Tourist)
The Uncertainty Principle in markets (Pension Partners)
The importance of expectations in investing (Validea)
When tail risk isn’t tail risk (PragCap)
Can change India’s retail landscape.
Cyclicals: Investor interest max in red zone->research reports start appearing. They value using PE or EV/ EBIDTA on up-coming yr earnings. Worst way 2 value such business! 8x FY19 EBIDTA might turn out 2 b 20x FY20/21. There r Better ways 2 value pic.twitter.com/pGtKQdhqz8
— Deepak Kapur (@tapak7) November 22, 2017
Some stuff I am reading today morning:
Spin Gold from spinoffs (Mohnish Pabrai)
WhatsApp Leak : SEBI, bourses checking trade details (MC)
Railways to sell 30,000 kms of railway lines (ET)
Kishore Biyani unveils Retail 3.0 (Mint)
When Billionaire Brother’s Bonds decouple (Quint)
Lindy Effect of Unilever Nepal (Amit)
Know your BRLM-Axis Capital (FirstChoice IPO)
Stay away from HDFC Housing Opporunities Fund (Vipin)
Why Uber is the revenge of the founders (Steve Blank)
Lessons from the decline of GE stock (Independent Advisors)
The Book ‘How to make money in Stocks’ is written by William J. O’Neil and is widely considered a classic in investing circles.
The author is a veteran trader and his approach towards the markets is “Been there,seen that”
He compares himself to an historian and believes that since markets are ruled by crowd psychology,many of the stock patterns in the past repeat themselves and will repeat again in the future.
The first chapter contains around 100 charts which make for interesting reading.
The second chapter explains how to read charts and how to select the right time/price to buy a particular stock.
But which stock to buy?He has a criteria called CAN SLIM which stands for:
C=Currently Big/Accelerating Sales and Earnings Per Share
A=Annual Earnings Increases with Big Growth
N=New Companies,New Products,New Earnings
S=Supply and Demand of Stock Volumes
L=Leader or Laggard
I=Institutional Sponsorship
M=Market Direction
There is a chapter on each one of these concepts which explain at length on how to apply them
The last section is on a very neglected aspect of investing-when to sell
The author is of the firm view that one should book losses quickly (not more than 8%) and let the profits run.
While all the examples are from the US, there are many investors in India who swear by the book and attribute their profits to it.
Do buy the book if interested in trading.
