Finding growth stocks
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I saw many ships anchored, there at OPL, however majority were Cruise ships ! Corona 2nd wave started then, and there were not enough passengers for these cruise liners ! Running such massive ships is very very expensive and keeping them at anchor still costs a lot to the company. I was thinking how much profitable it would be to the scrap business if theses luxurious ships are sold as scraps.
Case study - Ship breaking company Ships when sold to scraps are sold basis their light weight (total mass of iron used to make that ship), it does not matter what luxurious things are inside that ship ! The scrapyard can easily re-sell items inside the ships too !
With this belief I started my search and found some interesting thing :
Its march result came on 30-Jun-2022 with EPS of 6 (as expected), by that time it was already at its correct valuation of 100 (why do stocks rise and fall).
May be I got lucky, but I knew why I was doing it ! I wrote in "MY NOTES" that I was buying with SHORT TERM vision and will sell when it doubles, all by applying common sense ! I got out of it completely when it stopped performing !
This stock made me realise that finding growth stocks is nothing more than looking around and a little bit of common sense !
Think about it, we were all seeing Bajaj Finance banners / boards in all electronic shops, mobile phone shops and even on Flipkart payment page since last many years, you could have checked its financials and invested !
I have said this before, it is very obvious in hindsight ! Like most You-tube stock experts, I can easily sit back and tell you now where you should have invested 10 years ago, trust me you do not need to be an expert for this ! However, what if I have the guts, to predict some stocks future now and lets see how they do as time passes ! So, I am detailing some stocks which I bought basis some common sense and looking around.
Nobody can predict future, specially when its in decades but this chapter is not whether I was right or wrong (I know I will be wrong), its about finding growth stocks now and reap its benefits if it survives for decades ! Below is how I invest these days asking very simple questions and trying to find companies which will benefit in coming future !
I will detail the stock name when any of this happens :
Of course, I am keeping bar extremely high, with an expected CAGR return of almost 25% ! Whether these companies will preform or not, ONLY TIME WILL TELL !
If my stock fails, you can laugh on me, I do not mind, my point is not whether I win or loose, its how to find growth stocks applying simple methods, so here I go ....
I admit these may seem ridiculous, stupid and too simple ways to find growth stocks, and I fully agree with you, but as I said before, only time will tell !
For now, let us move to our next chapter, dividend growth Investing where wesee read about another major advantage of growth stocks and how we can plan to live on high dividend stocks.
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Finding growth stocks
In mid Mar 2021, I was anchoring an AFRA-MAX sized oil tanker at Singapore OPL (outer port limit).
What I saw there changed my investment philosophy forever !
Finding growth stocks is nothing more than predicting the future of a company's share as we discussed in Warren Buffett investment strategy. In this chapter of Share market tutorial, we will learn how we can apply common sense and find growth stocks by looking around !
Shares name mentioned are for educational purpose only and not to be taken as recommendations. Mentioned stocks may have been good investment at that moment of time which may have changed at the time of reading.
Please learn share market basics & how to value stocks before investing or consult a good Investment advisor.
Rishi kashyap is not a certified Financial advisor, please contact your Investment advisor if you do not know investing
Please learn share market basics & how to value stocks before investing or consult a good Investment advisor.
Rishi kashyap is not a certified Financial advisor, please contact your Investment advisor if you do not know investing
I saw many ships anchored, there at OPL, however majority were Cruise ships ! Corona 2nd wave started then, and there were not enough passengers for these cruise liners ! Running such massive ships is very very expensive and keeping them at anchor still costs a lot to the company. I was thinking how much profitable it would be to the scrap business if theses luxurious ships are sold as scraps.
With this belief I started my search and found some interesting thing :
- Iron price was increasing exponentially in last 3-4 months (Dec 2020- Mar 2021) and iron stocks rallied but scrapyard stock did not ! With supply chain disrupted due to COVID, I expected iron price to stay there, if not rise, in coming few months too !
- Financial / annual report of 1 ship scrapyard clearly stated that nearly 2-3 % of Iron consumption is fulfilled from Iron Scraps.
- I checked Hariyana Ship Breakers financials and found results as expected
Results declared Quarter EPS 11-Nov-2020 Sep 2020 4.7 13-Feb-2021 Dec 2020 5.6
Remember Hariyana Ship Breakers was NEVER categorized under "GOOD COMPANY" in MY NOTES section.
Its 7 fundamental ratios as mentioned in How to value stocks, were not complying with our set rules.
However, I was very sure about its stocks probability of earning and below is my transaction detail
Share of company Buying Sold Return Hariyana Ship Breakers Price : 51
(26-Mar-2021)Price : 120
(13-Aug-2021)135 %
CAGR return : 832 %Hariyana Ship Breakers Price : 49
(12-Apr-2021)Price : 120
(13-Aug-2021)144 %
CAGR return : 1329 %Hariyana Ship Breakers Price : 60
(10-May-2021)Price : 81
(31-May-2022)35 %
CAGR return : 32 %
Its march result came on 30-Jun-2022 with EPS of 6 (as expected), by that time it was already at its correct valuation of 100 (why do stocks rise and fall).
May be I got lucky, but I knew why I was doing it ! I wrote in "MY NOTES" that I was buying with SHORT TERM vision and will sell when it doubles, all by applying common sense ! I got out of it completely when it stopped performing !
This stock made me realise that finding growth stocks is nothing more than looking around and a little bit of common sense !
Think about it, we were all seeing Bajaj Finance banners / boards in all electronic shops, mobile phone shops and even on Flipkart payment page since last many years, you could have checked its financials and invested !
The investor of today does not profit from yesterday's growth.Warren Buffett
I have said this before, it is very obvious in hindsight ! Like most You-tube stock experts, I can easily sit back and tell you now where you should have invested 10 years ago, trust me you do not need to be an expert for this ! However, what if I have the guts, to predict some stocks future now and lets see how they do as time passes ! So, I am detailing some stocks which I bought basis some common sense and looking around.
Nobody can predict future, specially when its in decades but this chapter is not whether I was right or wrong (I know I will be wrong), its about finding growth stocks now and reap its benefits if it survives for decades ! Below is how I invest these days asking very simple questions and trying to find companies which will benefit in coming future !
I will detail the stock name when any of this happens :
2X within 3 years(CAGR : 26 %)- 3X within 5 years (CAGR 24 %)
- 10X within 10 years (CAGR 26 %)
Of course, I am keeping bar extremely high, with an expected CAGR return of almost 25% ! Whether these companies will preform or not, ONLY TIME WILL TELL !
If my stock fails, you can laugh on me, I do not mind, my point is not whether I win or loose, its how to find growth stocks applying simple methods, so here I go ....
- Best competitor of Relaxo footwear ?
I ask a lot of questions, too direct sometimes !
Anyways, Relaxo Footwear is a well know growth stock with a CAGR return of more than 25 % in a decade, however it was extremely expensive. I realised most popular footwear brands were not performing but whenever I went to this footwear brand showroom, it was always filled with customers who came to buy not for window shopping.
I have bought this company on 11-May-2021.
- This industry is favoured by Government ?
During Corona times, many memes were made against this industry ! Govt allowed 3 kind of shops to open even during lockdown, 1 was from this industry ! I also noticed a cultural change in Indian home which will benefit this industry in coming decades.
I have bought this company on 22-Jun-2021.
- War between 2 countries started, which company will benefit ?
Taliban attacked Afghanistan soon followed by Russia attack of Ukrain. Which company you would think will benefit ?
I have bought this company on 13-May-2022.
- Which technology will persist for decades ?
Investment Advisor : Kashyap EV is future ! Invest in new technology, invest in Sona BLW Precision !
I found this stock using my low PE ratio stocks filter !
Me : Hmm ... interesting, wait, which thing will not change in a decade at least !
I have bought this company on 11-May-2021.
- Which company will benefit from Indian Government investment in logistics ?
Indian Government is boasting of roads, sea and dedicated freight corridor for rail transportation ! Which company will benefit ?
I have bought this company on 30-Jul-2020.
- Solar panels and EV is the future ?
Which companies will benefit from expected growth in demand for Solar Panels and EV ?
I have bought 1 famous battery company on 20-Aug-2021 & 20-Dec-2021.
I have bought 1 metal stock company on 24-Feb-2023
- My car Tyre worn out revealings things it is made of ?
I was returning back from Durgapur airport, in night, only to find that car tyre is so worn out that bead wires could be easily seen. My driver apologized and we changed to spare tyre.
Next day we changed to new tyres, but months later I found the company manufacturing same !
I invested in it, at all time high, on 02-Dec-2021.
I admit these may seem ridiculous, stupid and too simple ways to find growth stocks, and I fully agree with you, but as I said before, only time will tell !
For now, let us move to our next chapter, dividend growth Investing where we
GROWTH INVESTING STOCK INVESTMENT FINANCIAL PLANNING VALUING STOCKS STOCK MARKET COURSE
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