MY STOCK MARKET CHECKLIST FULL

Full ur tank go for a ride look at most happening brands (exide, hero honda, sintex, maruti, mahindra, ashok leyland, niit, bajaj electronics, voltas, blues star, havells,) etc. The only expenditure we have to incure to find good investments opportunities is few litres of petrol. When i say 200 companies, i mean invest in companies whose products we use(fevicol-pidililite, colgate, gillete, lux-hul, aasirvaad aata-itc, paracetomal-gsk pharma, kids books-navneet, titan etc). Think 10,000 each as your sunk cost and forget.Įven if two or three companies clicks in my portfolio out of 200 i will be a richperson. I think it’s wise to invest 10,000 each in best 200 companies over a period of time and forget. What about you? Do you have a clear exit strategy in place when you buy a stock? If yes, what is it? If no, why not? In fact, I have this handwritten checklist pasted in front of my workspace…and it acts as a great and regular reminder that ‘buy and hold’ doesn’t mean ‘buy and forget’ (this is however valid only for my stocks, and not for my marriage :-)). I use this 10-point checklist to review my stocks every six months or as situations demand. When I need money for an emergency (I start by selling the worst stocks from my portfolio).When I identify a better opportunity (I sell the worst stock from my portfolio and reinvest the money in this new opportunity).When the stock surges at a rapid pace without any change in the underlying business fundamentals.When the return on equity falls below 15% with no sign of improvement.When something happens to cast doubt on a company management’s integrity (like a bad diversification, or an overvalued acquisition).When the debt on a company’s balance sheet crosses my comfort level (usually 50% of equity) and is expected to remain there for some time.When the cash flows of a company deteriorate.When the business model of a company deteriorates.When a stock gets overvalued (its price moves much higher than its intrinsic value).When I realize that I made a mistake in buying a stock.To avoid such disasters, here are 10 reasons I personally use to sell my stocks, however attractive the overall stock market might seem: The results of such interpretational error can be disastrous for investors. But I think it can be misinterpreted to mean ‘buy and hold…and forget…and never sell’. In fact, most books on sensible investing have advised this strategy for long. You see, buying a good stock and holding it for 5-10 years is a great idea. Warren Buffett once said, “Our favourite holding period is forever.”īut given what Buffett has done over the years, perhaps what he meant was, “Our favourite holding period is forever…but, in practice, we will sell if any of a number of conditions is met.” While buying an investment, they have a clear answer to the question – “When will I sell this investment?” The most successful investors go into an investment with an exit strategy in mind. But you must always buy an investment with a clear-cut exit strategy.

You must not enter into a marriage with the thought of divorce in the future. However, there’s one big difference between marriage and investing. Know that things could change and accept when they do change.Long term investing is a lot like a marriage.įor a peaceful relationship, you must be willing to… “I also wish there was an exit clause,” she added, this time raising my interest levels. “I wish there was a quarterly review possible in a marriage,” rued my wife after a small fight.

My stock market checklist