Value Investing is an Investment Method where You will Evaluate the Value of an Asset and Compare it with Price to make Buy or Sell Decisions. ONLY 1% Traders makes Profits, But 100% Value Investors makes Profit! Value Investing is the Strategy we used to create 50X Returns in Bajaj Finance. So Learn Value Investing seriously.
If you are going to purchase a Maruthi Car and the Dealer is asking Rs. 1 Crore for it – Will you Buy it or Not? Clearly you will not buy it as you know the Price is very high compared to the Value!
However in Stock Market the Price is available readily but the Value Identification requires more effort where you have to use the following methods:
- FUNDAMENTAL ANALYSIS here the book value, sales, profits are analyzed to arrive at the Value of the Company.
- GROWTH ANALYSIS here the sales growth, profit growth, projected growth are calculated to arrive at the Value of the Company
This is Best Value Investing Article in the World. Use it fully!
If you are looking for VALUE STOCKS INDIA here you go.
VALUE vs PRICE
Now coming to the Point of value investing actions:
- if the market price is lower than value then the value investor will buy
- As long as the market price is lower than the value investor will hold
- If the market price reaches higher than the value the value investor will sell
Thus through Value Investing the Value Investor makes Profit through Capital Appreciation, Dividends etc.
For Example: Warren Buffett bought Apple Shares at $100 Price during 2015 because based on the Fundamental & Growth Analysis he found the Value at $1000. In just 5 years the stock price zoomed to $500 giving him 500% Profits in Capital Appreciation!
As a Value Investor you should be able to Calculate the Future Value of the company!
WHY LEARNING VALUE INVESTING IS IMPORTANT?
You are living in a Money-controlled World. All the Activities you perform day-to-day have a Money Component in it.
- The home you live or rent needs money payment
- People go to work to meet money expenses
- The education yesterday was to make better money in future
- Sitting idle also still costs money as electricity, cooling, water, food expenses still exists
If you spent time on a Passion, people call it waste of time, but if it generated money it becomes Productive!
So it is Important to Learn & Control Money by applying Value Investing!
5 YEAR FINANCIAL FREEDOM THROUGH VALUE INVESTING
The more you become a Value Investor more your Money Problems disappear & You will be able to gain Self-Actualization in life. You can learn about our 5 Year Financial Freedom in the Picture below which depicts how 5 Year Value Investing can generate Rs. 2 Lakh monthly income to be Financially Free!
WHO ARE THE VALUE INVESTORS?
Warren Buffet (International Investor) is a Value Investor.
Ramesh Damani (Indian Celebrity Investor) is a Value Investor.
We (Futurecaps) is a Value Investor.
HOW VALUE INVESTING MAKES YOU RICH?
If you make Value Investing a Life-style OR Mantra, then your Wealth & Income will grow higher each day. You will really become Super-rich like the Celebrity Investors. All the Rich People are VALUE Conscious!
You can apply Value Investing in your Day-to-Day life. For example, Rs. 10 Thousand Course will give you Rs. 20 Thousand Increase in Income. 100% Gain! You give 1X price & you got 2X value! It is Value Investing.
In the world of stock market, the Value Investing is not about 2X gains.. It is about 10X, 100X, 1000X & even 10000X gains. So Learn Value Investing!
HOW YOU CAN BE A VALUE INVESTOR?
Futurecaps has created many Value Investors & they have made Millions of Profits through Value Investing.
You can be a VALUE INVESTOR by following the path below.
- Master the Skill of Stock Valuation using Intrinsic Value
- BUY a Stock if the Value is higher than Price
- SELL a Stock if the Value is lower than Price
- Keep a Portfolio of 10-14 Stocks
- Shuffle the Portfolio yearly
DAY TRADING IS NOT VALUE INVESTING!
It is a common misconception that Stock Market is a Quick Way to Make Money – this is the Reason more & more people are found in Day Trading. Let me tell you frankly, Day Trading will MAKE you Poor!
Day Trading does not Involve Fundamental Analysis. It is Just a Gambling based on the Current Market Price of the Scrip. Day Trading involves huge time & money spent on market with lot of mental effort – still they are LOOSING money and becoming POOR through stock market. This is because the Whole Game of Day Trading is created in such a way that ONLY the broker, government & tips providers make consistent profits!
Sad to say, Day Traders & Short-Term Investors are NOT Real Investors. The Top Riches in World are not Day Trader but Value Investors like Warren Buffett, Ramesh Damani are!
LEARN MORE | There is a Challenge for Day Traders there
HOW YOU CAN SURVIVE BEAR MARKET THROUGH VALUE INVESTING?
Value Investing can be applied to All Market Types – Bull Market, Dull Market & Bear Market too.
During the Bear Market, the Value Investor can Re-Calculate the Intrinsic Value on their Portfolio to take actions:
- BUY the stocks whose Value > Price
- SELL the stocks whose Value < Price
Real World Example As you know Warren Buffet during the 2020 Peak of US Stock Market did not made any big purchases. He found that the Value of stocks are Lower than the Price!
At the same time the same Warren Buffet during 2010 Market Crash bought truck loads of Bank of America & Other stocks as they were under-valued during the time.
INTRINSIC VALUE FORMULA
If you wanted to be a VALUE INVESTOR in stock market, You MUST learn INTRINSIC VALUE FORMULA. This method was created by Benjamin Grahim the Mentor of Warren Buffett. The formula is bit complicated but worth learning it if you wanted to be Rich!
Futurecaps has modified the formula for Indian Stock Market. You can watch the Video below on How to Calculate the Intrinsic Value.
You can Access the >> INTRINSIC VALUE CALCULATOR
Only 1% Traders makes Profits, But 100% Value Investors makes Profits!
VALUE INVESTING RATIOS
Value Investors uses the following Ratios in additional to the Intrinsic Value Formula.
PE Ratio Price to Earnings Ratio. Lower the Better.
PEG Ratio Price to Earnings Growth Ratio. Lower the Better.
PB Ratio Price to Book Value Ratio. Lower the Better.
DE Ratio Debt to Equity Ratio. Lower the Better.
CURRENT RATIO Current Assets divided by Current Liabilities. Higher the Better.
Futurecaps uses 20 Point Checklist contains above Value Investing Ratios.
VALUE INVESTING MULTIBAGGERS
Following are the Multibaggers based on Value Investing Analysis.
Manappuram Finance We recommended Manappuram Finance in the Midst of Corona Troubles. During the time the Price crashed 50% & most of the Investors were selling the stock.
Futurecaps found a Value Jump of 100% as the Price crashed 50%. Remember, the company was having Growth in EPS for the past 2 years through Increased Business spaces from Gold Loan, Auto Loan, Housing Loan etc.
Thus we recommended Manappuram Finance below Rs. 100 & it gained 100% growth in just 3 months!
IOL Chemicals Futurecaps recommended IOL Chemicals on the same basis of Value Investing. The Intrinsic Value was growing due to the EPS Growth of the company. However the Price was crashing due to Corona sentiments.
In just 3 months of time the Price got increased 100%. LINK
VALUE INVESTING FAQs
CLASSIC BOOKS ON VALUE INVESTING
If you wanted to Learn Value Investing to the Core >> Here are the Top Books on Value Investing.
THE INTELLIGENT INVESTOR
Here is the Diamond Summary of the Book THE INTELLIGENT INVESTOR.
- Always Invest with a Margin of Safety Here Benjamin Graham enforces the Lessons we learned through Intrinsic Value. In fact Benjamin Graham is the Father of Intrinsic Value formula, which Futurecaps optimized for Indian Stock Market. (No doubt on the formula as for a Decade it is giving us Winning Picks & Exit Signals). The Margin of Safety is kind of Air Bag which will absorb Temporary & Un-foreseen Prices crashes of the company while we are Insured on the Value. According to Indian Market conditions 30% is the Margin of Safety for Largecaps & 50% is the Margin of Safety for Midcaps & Smallcaps.
- Expect Volatility and Profit from it Benjamin Graham the Father of Value Investing always observed the Advantage of Bear Markets. Bear Markets just give High Amount of Margin of Safety which will Double the Compounded Returns of future. As you know from the Indian Stock Market crash during Mar 2020, we have gained Easy 100% Returns on Stocks invested during the midst of it. Secret! Bear Market is a Hidden Tool of Riches to Double the Wealth. However, Bear Market alone is not comprising of the Volatility. Temporary problems with a Single Company can also lead to Volatility in the particular stock price. These Volatility Opportunities whether Whole Bear Market attack Or Volatility in a Single Stock Price should be Carefully Analyzed, Ensure Margin of Safety & Wisely Acquired for Multi-fold Gain in the Long-term.
- Know What kind of Investor you are As per Graham, there are 2 types of Investors Speculator & Investor. Speculators are those Day Traders & Short-term Investors who loose time & money in the stock market. They will not learn properly about a company, do gambling, take lot of actions & earn less Or make losses. However, Investor are those people like us who do proper Fundamental Analysis of the company, Reads the Annual Report, Do the Checkpoint Analysis, Ensure Future of Sector, Ensure Margin of Safety & Invest as if we are also Owning the portion of the company. In the long-run these Investors are benefited with Super Returns involving Power of Compounding!
- Hold for Long-term As per Graham, the Real Value of a company is Unlocked in the Long-term through Market Recognition, Funds Investing, Capital Appreciation, PE Resizing, Dividend Gain etc. So it is Important to Hold the stocks for Long-term. The additional benefits of Graham’s method is Less actions in stock market, More peace of mind & Obviously More Returns than other Speculators. (Note: If you ask the Annual Returns of those Short-term Investors or Day Traders you will be Surprised to see most of them are in Losses & few have Maegre returns like 10-20% – This is the reason we are saying only 5% People really make Profit in Stock Market & They are Long-term Investors)
- Compound Returns 20% Annually The reported returns of Benjamin Graham was around 20% annually. Due to the Large Capitalization companies he was holding & the historical timeline of 1890-1970s it is believed to be extra-ordinary returns. To the advantage of Indian Stock Market Investor who Directly Invest in Equities especially Midcaps & Smallcaps, you can gain 30-50% Returns on Annual Basis coupled with our Bear Market Strategy available to Premium Members!
- Financial Ratios Following were the Important Ratios used by Benjamin Graham.
- Rating on Company Find the Quality Rating on the Company by Reputed Rating agencies. In the case of India, we can use CARE or CRISIL ratings.
- Debt to Current Asset Ratio Graham preferred low debt companies. If there is Debt the Debt to Current Asset Ratio should be less than 1. In Screener we can Custom Build these ratios. [Taught in course MASTER MIND]
- Current Ratio The Current Ratio should be above 1.5. The Current Ratio is calculated by dividing Current Assets by Current Liabilities. Current are those entries which has to be Met in the Current Financial Year. Current Ratio is readily available in Screener.
- Positive Earnings Growth Graham ensured the Current Earnings of the Company is Higher than the Earnings 5 Year before. Please note that In Indian Conditions we prefer to have Higher Earnings each Year.
- PE Ratio Price to Earnings Ratio is an Important Factor in Graham’s research book. He prefers to have PE < 9. Graham also warns that Low PE may be Eliminating High Growth companies and hence other Growth Ratios needs to be applied. In our Indian Stock Market Scenario we use the PEG Ratio for same.
- PB Ratio Price to Book Value Ratio is the next important ratio than PE Ratio for Graham. It is calculated by dividing the Price to the Accounting Book Value of the company. Graham likes companies which have PB Ratio around 1 or less than 1. In Futurecaps Research we prefer to have this value as Max of 3.
Note: All these Ratios of Benjamin Graham are included in Futurecaps 100 Point Research Checklist in determining a Stock as Multibagger or not. Premium Subscription.
Here is the Diamond Summary of the Book SECURITY ANALYSIS.
- Minimize the Chances of Irreversible Losses In this book the Principle of Preserving Capital is enforced by Ensuring the stock company is having sound financials, the Return yield is better than Bond Yields, Buy stocks below Intrinsic Value etc. The author David is talking in the context of US Stock Markets were Big Crashes like Dotcom Bust, Sub-price Crash etc killed the Stock Market & Bond Market too causing equal trouble to Safe & Aggressive Investors. Thus David is in the view that Bond Market can also undergo negative yields while the returns are less.
- Maximize the Chances of Sustainable Gains If a sound company is found with growth prospective, ensure how the company maintains the growth in future too – for example price differentiation, monopoly technology, sector growth, brand loyalty etc. are the security factors which will ensure the company will have steady growth in future too. Warren Buffet as an Apple Investor called Apple as a Brand Loyalty Company because he found the Customers are ready to Pay Extra-cost to Apple iPhone compared to other devices as well as ready to wait whole night at the Store during New iPhone launches.
- Differentiate between Defensive & Enterprising Investor A Defensive Investor is one who takes Moderate Risks for Moderate Gains. Enterprising Investor will take High Risk for High Gains. The matter of Debt exposure, Innovative technologies etc. are core determinator here. In Indian Stock Market a Moderate Return would be around 10-12%; but this Moderator Risk taker can often end up in bigger trouble as they are Risking 100% of their Capital while expecting 10-12% Moderate Returns. As an Advisor with stock market experience I would say Stock Market is for Higher Returns in the order of 20-50%; If one is seeking lower returns like 10-12% then Corporate Fixed Deposits would be an alternative idea.
- Perform Quantitative & Qualitative Analysis Both Quantitative & Qualitative Analysis are required to Identify a Stock as a Multibagger. Quantitative Analysis involves the Financial Statements & Ratios analysis. Example are PE, PB, PEG, Net Profit, EPS Growth, Current Ratio etc. In Qualitative Analysis mostly the Intangible items like Management Quality, Fraud Check, Credit Rating, Sector Growth Prospective, Market Biases, Economic Moat etc. are analyzed. Quantitative Analysis can be done by Computers, but Qualitative Analysis requires People.
- Focus on the Earnings Power of the Company Ensure the company’s Earnings Power is Positive. The Earnings of a Company is determined by the Net Profit divided as Earnings per Share, Dividends Distributed & Asset Value. The EPS should be checked for the Present, Past & Projected Future EPS too. Check the Dividend Record of the company. Often in Indian Stock Market when we deal with Microcap companies, there could be companies who report High Net Profits but their Dividend payout may not match it. These are signals of possible Frauds.
THE INTERPRETATION OF FINANCIAL STATEMENTS
Here is the Diamond Summary of the Book THE INTERPRETATION OF FINANCIAL STATEMENTS.
The book is written by Mary Buffet who is Daughter-in-law of Warren Buffet. In my view, this book is better than the Warren Buffet Way book because it allows easily implementable patterns.Warren Buffett is still the Top Investor in the World & thus his Principles are definitely to be learnt & applied in your investing life. The book focuses on the Importance of Analyzing Financial Statements & Deriving valid conclusions on the company based on the Interpret Financial Ratios below.
- Durable Competitive Advantage is the Key of Successful Multibaggers which Warren Buffett selects. The Durable Competitive Advantage is something which gives the Company upper hand than the competitors. For example in the Winning Pick of Warren Buffett which is Apple Inc, the Brand Loyalty of the customers is considered as Durable Competitive Advantage. Even though Apple Products are Not Innovative in the market still they can Command higher price thereby earning more profits & growing every year with new product releases. Economic Moat is Synonymous with Durable Competitive Advantage.
- Operating Profit Margin is a Core Financial Ratio which Warren Buffett looks for & Ensure it is greater than 40%. He believes if the Operating Profit Margin is greater than 40% then the company is enjoying Huge Economic Moat / Durable Competitive Advantage.
- Net Profit Margin is a Related Financial Ratio which Warren Buffett uses. He prefers to have Net Profit Margin greater than 20%! As you know Net Profit is Operating Profit after Deducting Taxes, Depreciation etc.
- Sales Growth Warren Buffett prefers to have companies with Sales Growth above 20% every year. By applying Power of Compounding the company can reach 300 Times in 20 Years time period applying the Capital Growth and PE Resizing due to Blue Chip Formation, Mutual Funds Investing etc.
- Customer Bargaining Power Mary Buffett mentions that Warren Buffett prefers to stay away from Businesses which give the Customer a lot of Bargaining Power. For example take Airlines sectors where repeated business is not possible as Customer switches the Airlines based on Price Offers. As per Buffett, these businesses will have Low Operating Profits compared to other businesses.
- Hold Forever The holding period of Warren Buffett is basically forever. He is holding Coca-Cola for last 50 years enjoying the Capital Growth & Dividend Income. Buffett says if you don’t feel comfortable owning a stock for 10 years, you shouldn’t own it for 10 minutes.
- Repeated Buying Another notable point of Warren Buffett is that he will be buying more on the Stock whenever it is crashed in a Bear Market. As per Warren Buffett you have to Eat more Potatoes when Potatoes are selling at discount.
- R&D Expense If a company is spending too much on R&D it means the Industry is very Competitive in nature. Warren Buffett prefers to stay away from such companies as he believes down the line the company is heading for bankruptcy. For example, High R&D was the reason Warren Buffett stayed away from Intel Corporation the Tech Computer CPU Giant.
- Interest Expense If the company is having High Interest Expense it means the company is in Capital Intensive sector & Warren Buffett prefers to stay away from those business. As a note, Banking & NBFC companies have High Debt thereby increasing the Interest Expenses. In these cases the following Financial Ratio is important.
- Interest Coverage Ratio This ratio ensures that the company is having enough money from the Net Profit to pay back the Interests. Of the order of 2 Warren Buffett is okay with the company. Interest Coverage Ratio 2 means the company can afford to pay back twice of the Interest from the Net Profit generated.
- Cash in Hand Warren Buffett wants to see More Cash in the Cash Flow Statement. He thinks More Cash is a Visible Sign that the Company is having growing Reserves.
- Reserves & Surplus should be Increasing every year & Warren Buffett ensures that the Reserves are Not growing through Bond Selling or Debt Increase. Otherwise the Company is termed Credible.
- Inventory Warren Buffett likes to have companies with Growing Inventory par with Growing Sales. This ensures that the Sales figures are credible.
- Capital Expenditure He prefers to have companies with less expenses Capital Expenditure. If the Capital Expenditure is less than 25% of the Net Profit then it is a Good Durable Competitive Advantage company.
- Current Ratio Warren Buffett prefers to see companies with High Current Ratio above 2. Current Ratio is the Current Assets divided by Current Liabilities. Current Assets are the Sales generated from Customers & Current Liabilities include the Expenses like rent, salary, supplier payment etc.
- Dividend Warren Buffett prefers to have Less Dividend paying companies as he thinks the Company can Re-invest the Dividends in Growth of company which will Increase the Value tremendously in the future years.
- Share Buybacks If the company is buying back its own shares then Warren Buffett likes that company as the EPS is growing. For example, Microsoft is such a stock in US which buys back its own shares.
- ROE Return on Equity is another Important Ratio which Warren Buffett looks for. He prefers to have 12% above returns for the ROE ratio as according to him A Good Company will use its Money Wisely & Offer higher Returns to the Equity base. His favorite stock Coca-Cola was earning ROE of 30% every year for the past 3 decades.
- Intrinsic Value is the Core Formula used by Warren Buffett to find the Value of the company. This formula & examples are well defined here.
NOTE We Futurecaps is a Fan of Warren Buffett since last 12 years. All our Multibaggers are created based on Warren Buffett Checklist. Coupled with Warren Buffett Strategies of Long-term Investing, we were able to Invest heavily & Generate 1000% like returns along with Peaceful Sleep. Be a Member of our Premium Subscription to follow the Path of Warren Buffett!
PURPOSE OF INVESTING
LONG TERM INVESTING
SECRETS OF RICHES
IDENTIFY A MULTIBAGGER
WARREN BUFFET WAY
BEAR MARKET HANDLING
TEST YOUR KNOWLEDGE
Stock Market Investing is a Course!
Just like any other Course like MBA, you are Required to Learn the Inner-Workings to be a Successful Stock Market Investor. Otherwise, you may loose your hard-earned money & time through short-term investing, day-trading etc. which are just traps.
Intrinsic Value is an Essential Formula used by Value Investor to make Billion Dollar decisions. (Warren Buffett uses same)
Intrinsic Value Formula
Intrinsic Value Definition is created by Benjamin Graham the Guru of Warren Buffett in his book Intelligent Investor. The formula is helpful in Evaluating stocks which have projected growth rate.
Intrinsic Value helps to find the Current Value of the stock after Calculating the EPS Growth for next N years. This is a Moving Calculation!
To calculate Intrinsic Value you require the following:
- EPS – Earnings Per Share (eg: 50)
- G – Growth Rate for next 10 years (eg: 20%)
- Y – No-Risk FD Returns (eg: 10%)
Note: The No-Risk FD Returns shows the Alternative Investment Opportunity
Intrinsic Value meaning is the “Real Value” of the company based on its EPS & Growth Rate. More the growth, More will be the Intrinsic Value.
For example: A stock with EPS 50 and Growth Rate 20% will be having an Intrinsic Value of Rs. 1300
Margin of Safety
Margin of Safety is the Percent(%) you deduct from the Intrinsic Value to have a Cushion. More the Margin of Safety – More the Cushion you have!
Warren Buffett keeps 20-30% Margin of Safety on his new buys. As he buys in Billions of Dollars the Intrinsic Value Margin of Safety protects him from short-term price crashes of the stock.
Margin of Safety differs for each class of stocks:
- For largecaps (bluechips) the MoS can be 20%
- For midcaps & smallcaps the MoS can be 30%
Fair Value is the Intrinsic Value – Margin of Safety
In above example, Rs. 1300 – 30% = Rs. 910 is the Fair Value
It means if you get the Stock at Rs. 910 or less will be a Good Deal.
Practical Example – Page Industries
Let us say your friend is advising to Buy Page Industries. You will put the following values as per 2020 April data on Screener.
- EPS 350
- Growth Rate: 10% (based on past 3 year average)
After submitting above values in our Intrinsic Value Calculator, You will get the Intrinsic Value as Rs. 5400
On Margin of Safety of 20% (for bluechip companies the MoS can be lower)
You will get the Fair Value as Rs. 4000!
Decision: The CMP of Page Industries is Rs. 18000.
Here the CMP is lesser than Fair Value.
Practical Example – Manappuram Finance
Manappuram Finance is another Good Example of Value Investing using Intrinsic Value. You can open the company details using the link of Screener.
You can find the following values from there:
- EPS 18.67
- EPS Growth as 25% (3 Year Average)
After submitting the values in our Intrinsic Value Calculator you will get the following:
- Intrinsic Value as 819
- Fair Value as 573
As of today the CMP of Manappuram Finance is
- CMP 160
Now you can Infer the following:
- Fair Value > CMP
VALUE STOCKS INDIA
You can visit the Value Stocks India link here.
You can Follow us to get Notified on FREE Multibaggers & Knowledge Blogs.
Now you can perform the following Intrinsic Value Exercise using Screener LINK.
Intrinsic Value of Blue Chips
- Find Intrinsic Value of HDFC Bank
- Find Intrinsic Value of Infosys
- Find Intrinsic Value of Reliance Industries
How much Margin of Safety you found there on each?
Intrinsic Value of Midcaps
- Find Intrinsic Value of V-Guard Industries
- Find Intrinsic Value of Caplin Point
- Find Intrinsic Value of Hester Bio-sciences
How much Margin of Safety you found there on each?
Intrinsic Value of Smallcaps
- Find Intrinsic Value of Globus Spirits
- Find Intrinsic Value of Dolat Investments?
- Find Intrinsic Value of Hester Bio-sciences
How much Margin of Safety you found there on each?
As you can see the Margin of Safety is Less going from Smallcaps to Midcaps to Bluechips! This is the reason Futurecaps is never recommending any Bluechips as the Intrinsic Value is Low & they will only give Low Returns & thus not suitable for Wealth Generation.
You can make the 3 Important Decisions based on Intrinsic Value – buy, hold & sell. We recommend you make the decision every Half-yearly or Yearly based on the Results of the stock.
BUY If CMP < Fair Value
HOLD If CMP between Fair Value & Intrinsic Value
SELL If CMP > Intrinsic Value
INTRINSIC VALUE CALCULATOR
You can use this Real Intrinsic Value Calculator here. Go to Screener.in to collect the EPS & EPS Growth Parameters for your company. Enter those values here. Just keep the other values untouched. Then immediate you will get the Intrinsic Value of your company.
WHY STOCK MARKET IS BETTER THAN FIXED DEPOSITS?
Fixed Deposits on Average provides only 8% Interest. Compared to the Indian Inflation Average of 5%, You are ONLY getting 3% Returns. This is good only for Old-age people Or Poor-class who wish Not to take any risk.
If you are looking to become Rich, then Stock Market gives Returns of the order 30-50% on Average. But you should be be Undergoing the Right Education on Stock Market else you will loose time & money. MASTER MIND TRAINING
[Master Mind Training is the ONLY 12 Investing Lessons you need in your Life. Without it you will Learn all Garbage knowledge out there destroying your capital, time & confidence]
WHY STOCK MARKET IS BETTER THAN REAL ESTATE INVESTMENTS?
In real estate, a flat investment may provide only 8% returns. (remember, building is a depreciation asset)
In real estate, a plot may provide only 15% returns. (remember, land is an appreciating asset)
Plus, real estate have more issues like registration costs, no easy liquidity, regular monitoring, maintenance efforts, political biases etc.
Stock Market is the Best Vehicle to provide you 30-50% Annual Returns which Real Estate cannot provide. This is the Reason all Top Riches in the World have parked their money in Stock Market. If you wanted to be Super Rich then Stock Market is the way!
WHY DIRECT INVESTING IS BETTER THAN MUTUAL FUNDS?
Mutual Funds have Limitations over Direct Equity Investing. This is the Reason Warren Buffett also said that Retail Investor can Gain Double Return than the PMS / Mutual Funds.
If you Take the Returns of Best Smallcap Mutual Fund in India which is SBI Smallcap Fund you will see it only returned 40% from March 2020 till Date of Sep 2020. Meanwhile, the direct equity investors gained 100-300% portfolio returns. How is that possible?
Following are the Reasons why Mutual Funds underperform:
- They can Invest only in Limited Stocks due to Capitalization, Rating Range – due to this they will loose the Big Multibaggers
- They have 2% Annual Maintance Charge which corrodes the the Asset under Management – In fact this 2% could have given another 100-200% returns over years
- They have Limitation on Buy/Sell actions which will make them Exposed to the Bear Attacks – During 2017-18 Futurecaps alerted our customers to Exit the stocks at peak thereby saving Capital & Confidence – But MFs have to sit tight & get the hit on face
All the above are the Reasons why MFs under-perform.
Being a Futurecaps Client you will be paying only Rs. 5000 per year on Multibaggers Buy/Hold/Sell actions. This will be less than 1% if you are holding a 5 lakh portfolio & less than 0.1% if you hold a 50 lakh portfolio.
GOLDEN RULES OF VALUE INVESTING
However, you need to learn the right ways of direct equity investing. JOIN Our MASTER MIND COURSE to be a Pro-Investor.
10000% is the Real Returns
Focus for Long Term
Understand your Risk Capital
Invest in Growth Stocks
Take Less Actions
Valuation is an Art
Portfolio Returns Matters
Keep Maximum 12 Stocks in Portfolio
Cash Position Matters
Do not Follow Day Traders or Short-Term Investors
Buy, Hold & Sell
Buy in Installments
Repeat the Buy
Buy on DIPS!
Conduct Yearly Audit
Ensure Minimum 20% Returns
Bear Market is Opportunity
Limited Loss & Unlimited Profits
Keep 1% Advisor Expense
To become Rich 20% Growth Required
Believe in India Growth Story
Contra Markets Strategy
Do not Underestimate Power of Mind
Note: It is VERY VERY Important that you Follow above Principles to become a Successful Value Investor with Ample Richness on your Side. You can also create Quarterly Reminder on the same so you are Sub-consciously programmed in the right path.
In this section you can get to know more books that will help your Investor Journey!
RICH DAD POOR DAD
WHO MOVED MY CHEESE?
Hope you enjoyed this Value Investing article. Futurecaps is the BEST STOCK ADVISORY IN INDIA with Double-returns & Half-price compared to others. If you are really serious to be a Value Investor you can Subscribe to our PREMIUM SERVICES where you will be receiving Value Investing based Picks which our Advisor Team is also investing. You will also get Free Essential Training!
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On stronger August sales and manufacturing statistics, Force Motors shares are trapped at a 5% upper circuit. On September 7, Force Motors shares were stuck above a 5% upper circuit after the company reported higher sales and production in August than the previous month. There were 19,402 pending buy orders, but no sellers were available.Continue reading “Market this week 8-9-2023”
– Multibagger Stock Analysis 2023 In this article, we can analyze Ahasolar Technologies Ltd as a Potential Multibagger Stock as on September 2023. Company Website Location Leaders Highlights Awards Products P&L Positives Negatives Checklist Summary Ahasolar Technologies Ltd Ahasolar Technologies Limited is engaged in the business of CleanTech enabling Energy Transition through Digital Transformation. PiyushkumarContinue reading “Ahasolar Technologies Ltd”
In this article, we can analyze Adani Green Energy Ltd as a Potential Multibagger Stock as on August 2023. Company Website Location Leaders Highlights Awards Products P&L Positives Negatives Checklist Summary Adani Green Energy Ltd Adani Green Energy Limited is a holding company of several subsidiaries carrying business of renewable power generation within the groupContinue reading “Adani Green Energy Ltd – Multibagger Stock Analysis 2023”
Most of our clients have understood the facts that: Here are some case studies from 2020 bear bottom on our multibaggers: As you can see from above: What you have to do? This is the path of Celebrity Investors. No Trader became rich through stock market – Investing is the real purpose of stock marketContinue reading “5 Bear Market Case Studies”
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Adani stocks had a heavy deterioration in value after the Hidenburg Short position over Accounting Fraud & Manipulation in the stock. LINK Lot of people are happy about it – as they missed the past-bull-rally in Adani stocks! 🙂 Let us come with an accurate view on the events: Some of the Over-valuation samples ofContinue reading “Can I buy Adani stocks now.. WAIT!”
Kotak expects GMR Infra to rise 10% as a result of potential debt reduction. With a ‘buy’ rating and a target price of Rs. 43, Kotak Institutional Equities is positive on GMR Airports Infrastructure and anticipates a 10% increase from current levels. The likelihood of the company’s debt reduction is a major driver of theContinue reading “Market this week 30-12-2022”
In this article, we can analyze theTata Motors Ltd as a Potential Multibagger Stock as on 2022 November. Company Website Location Leaders Highlights Awards Products P&L Positives Negatives Checklist Summary Tata Motors Ltd Tata Motors Group is a leading global automobile manufacturer. Part of the illustrious multi-national conglomerate, the Tata group, it offers a wideContinue reading “Tata Motors Ltd -Multibagger Stock Analysis 2022”
Sapphire Foods increases after a 10.7% equity trade. Operator of KFC and Pizza Hut Sapphire Foods saw a rise of almost 2 percent in early trading on December 15 after a bunched trade involving 10.7 percent of the company’s stock. Promoter organisations and a private equity fund reportedly sold some of their shares. The stockContinue reading “Market this week 16-12-2022”
In this article, we can analyze the State Bank of India as a Potential Multibagger Stock as on 2022 November. Company Website Location Leaders Highlights Awards Products P&L Positives Negatives Checklist Summary State Bank of India Ltd State Bank of India is a Fortune 500 company. It is an Indian Multinational, Public Sector banking andContinue reading “State Bank of India -Multibagger Stock Analysis 2022”
For Rs. 410 crores, JSPL buys the power plant from Monnet Power. According to sources with knowledge of the situation, Jindal Steel & Power Ltd. has purchased a Monnet Power Company under-construction facility for Rs. 410 crore through the insolvency resolution procedure. Adani Power was one of the candidates for the plant. The 1,050 MWContinue reading “Market this week 9-12-2022”
Gains for Axis Bank come from lender assurances that the growth upswing can continue Axis Bank’s stock increased on November 25 as a result of analysts’ positive reactions to the lender’s long-term outlook at the annual analyst day meeting on November 24. According to the brokerage company ICICI Securities, the lender’s management proved its capacityContinue reading “Market this week 2-12-2022”
Paytm block sales: Analysts remain bullish on the stock despite post-lock-in selling pressure On November 17, after Softbank, a significant shareholder in the firm, started selling its interest, shares of One 97 Communications, the parent company of Paytm, experienced a new round of selling that brought the price to a level last seen in MayContinue reading “Market this week 18-11-2022”