Investment books .: Stock Market

Saturday, September 17, 2011

Stocks to buy for 2011

Well Indian markets are butchered by the selling pressure of the FII'S and RBI's rate hike.But as Warrenn Buffett points out in his annual letter that we should ignore macro hindwinds and instead look for good stocks.Well we have stocks getting cheaper and cheaper as their earnings grow .Bad times and good times never last for forever there will be an end to this bear and we will start moving up .Now the point is nobody knows when markets will turn around So we should buy in diversify manners.Some of the stocks which are good for long term are.
1. PAGE INDUSTRIES-Well they sell Jockey brand in India.This year entered an agreement with speedo also.The cotton prices have cooled off and Page increased prices of their undergarments in order to absorb the rise in prices of cotton.So for this full year the results will be good.

2. PI INDUSTRIES-PI Industries Ltd is in the business of – Agri inputs, Fine Chemicals (CRAMS - Contract Research and Manufacturing Services).Well we are now sure of one thing indian inflation is due to lack in supply of vegetables and agricultural material.So In order to increase the productivity government may soon announce farmer friendly schemes to increase agricultural production.
This will lead to very good results from PI industries.

3. TALWALKARS BETTER VALUE FITNESS -Well all the stocks related to consumption are enjoying a premium .Talwalkars are expanding quiet fast and sooner or later their profit margins and business will increase as income is increasing .People are more health conscious and Talwalkars is doing a great job.Just look at people's review .http://www.facebook.com/TalwalkarsIndia?sk=wall at Talwalkars wall page .The stock is all set to give good results .

4.HDFC BANK-The next stock on our radar is HDFC bank as the rate cycle is almost over.We expect HDFC to perform better.HDFC have utilised their assets very well.

5.CRAVATEX-Investors with high risk taking abilities can buy this stock they have the license of FILA for indian operations .The market cap is very small . people The PE and EPS both are expected to increase thus it can provide very good results One should allot maximum of 1 % of their portfolio to this stock

6.AKZO NOBEL-This is the cheapest stock in the paint industry .The dividend is quiet good .Just look at it's 10 year chart it's amazing.It has constantly delivered good results.They own dulux brand.The comapany is increasing production.As the crude oil prices cool off their profit margins will increase.

RAKESH JHUNJHUNWALA BIOGRAPHY

Rakesh Jhunjhunwala also know as bhaiya ji,great bull,RJ,Indian warrenn buffett among his followers.If Indian stock market is a religion he is God of the Indian stock market.His predictions and picks are followed by his thousand's of followers.Lets throw some light on how he started .He was son of an Indian Tax officer.

Personal Profile: RJ is a Chartered Accountant.He married in 1987.He has a daughter and two sons.He lives in Malabar Hill.

He started investing in 1989.He persuaded a lady who was getting 10% interest in bank deposits.He said that he will give her 18% interest.She asked for security.He replied he will be able to give within 15 days.So finally,he managed to get Rs.2.5 lakhs from the lady.

In 1989, he bought 500 shares of Tata Power at Rs.150 bcoz yeild was higher than interest and benefit of Electricity Act. He made money in the stock.Then one of his friend introduced him to Sesa Goa. He bought 2.5 lakh shares at Rs.27 and then another 2.5 lakh shares at 36-37, which he sold it off at Rs.65.

On 1992 budget day,he went long,at the same time he was short on certain scrips.He doubled his positions after the budget.Everyone was bearish except RJ. He sold ACC at 3500 which went all the way till 10,000..thats where he realised that psychology plays an important role in investing.

He believes in Diversification within concentration.He increase his holdings after reviewing the situation.

He is influenced most by Dr.Marc Faber,Buffet. He says the investing qualities are similar to that of Faber.

When asked about the value of his portfolio holdings,he said," If you can count the money you have,you dont have enough"

, . His privately owned stock trading firm Rare Enterprises, derives its name from the first two initials of his name and wife Rekha's name.
Under the guidance of Mr Radhakrishna Damani, he made a lot of money shorting stocks at the time of Harshad Mehta scam post 1992.
"My decision to aggressively invest in the asset class of Indian equities at the right time was a very important determinant of my success,” said Rakesh Jhunjhunwala.
Jhunjhunwala's portfolio of stocks is tracked religiously. analysis. He acknowledges that it was 'trading' income which helped him built his initial capital base and continues to remain an active trader .

"I still eat, sleep and live markets," says Rakesh .Even in his initial days he would give his 16 hours of the day in reading and studying about stocks. He currently owns RARE Enterprises.He is currently buying Delta Corp and owns 3.6% of the company.Rakesh Jhunjhunwala lives in Malabar hill.

I am posting all videos available about him .

A SUMMARY ON HIS LIFE JOURNEY