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Pritam Deuskar Wealthyvia - Practical lessons for investors

Pritam Deuskar is a SEBI registered research analyst. Pritam has worked in stock markets research and business analysis for last many years. He had earlier worked with reputed portfolio management companies , pms houses. His views, interviews and articles have been published in all leading financial newspapers and tv channels like CNBC, CNBC Bazaar, Moneycontrol, Economic Times, Business Standard and so on. Pritam Deuskar is known for small and mid cap multibagger companies and finding them at very early stage had been his fortay. He has worked with HNI and Institutional clients.

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Pritam Deuskar Wealthyvia - Practical lessons for investors

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  1. 1. one should trade cyclical stocks only when one understands the start and end of cycles. Cyclical stocks peak in their prices not when their earnings peak out when expectations of earnings peak out. Understand how long the cycle usually lasts. According to Wealthyvia founder Pritam Deuskar When things start slightly positive cyclical stocks trade at high multiples of 40- 50-60 Price to earn as earnings turn negative to slightly positive. When earnings growth comes up , stock prices increase with price to earnings dropping due to eps rise. This is exactly opposite in cyclical stocks than non cyclical regular ones

  2. 2. According to Pritam Deuskar Wealthyvia, MNC consumption and manufacturing companies command a premium and look as a safe zone when markets are in an uncertain phase. Mnc companies can raise capital at low rate debt in their western countries or from parent companies capital. Most of them have 75% promoters holding with hefty dividend payouts. They are usually technologically advanced. 3. A financial mess can be deeper and trickier than a manufacturing or product based company's mess. In finance companies, troubles are unknown , leveraged and also have a ripple effect on other good assets. Companies in finance if in trouble have to sell good assets too to cover up. Profit growth may not translate to an increase of ROE. Price to book rerating is more difficult than analysts reports. Ability to raise funds in crisis is the only differentiation factor for management of a finance company or bank. If you want learn about how to create financial plan then visit wealthyvia site or connect with Pritam Deuskar he will give you right advice.

  3. 4. Quality , reputation of management and quality of earnings provide better margin of safety than cheaper valuations. Cheaper valuations are for a reason.

  4. 5.Market is smarter than all of us put together. if stock trades at 30- 40 PE , 50-60 PE there are reasons for it. predictability , longevity and quality with high growth commands premium and price anchoring. 6. If the approach is not well defined, strategy is not rolled out clearly then random bets are bound to suffer. Usually such bets come from very popular hot stocks talk of markets, social media etc or they come from extra enthu networking people 7. Stock becoming cheaper and cheaper is not a right criteria to buy it , single digit price is not at all a compelling reason to buy. If you ask me, if it has assets, not so bad earnings and it's in the 10s or 20s of price , how much it can fall then the answer is Zero. sentiments and happenings to conduct in future , perception towards them plays a big role in price move.

  5. 8. turn arounds do not often turn . stocks that have fallen from a ratio of 5 to 1 will not change their longer term direction bouncing to 1.3 or 1.4 from 1. Many stocks make such rallies in between but are not able to sustain them when they have fallen from very high. Many turnaround private equities have low returns worldwide. 9. no situation lasts. At one point people were picking mid caps and small caps , now finding large caps as holy grail. this won't last all the time too. Time changes so do the momentums. Ability to hold good stocks for long , buying them on correction , digesting their falls only will produce durable substantial returns. No stocks or portfolio in the world have been invincible . Most revered veteran investors had witnessed 40-50% drawdowns in their holding value in their stock market investment career. Conviction and stomach will only make sizable investment and returns.

  6. 10. By simply avoiding what you don't understand , stocks having pledges, low margins or cyclical margins , low promoter holdings and investing in better roce , better visibility companies one can do very well passively. 11. Change of management : particularly a new large reputed group coming to board with old managers gone is truly important and potentially rewarding change. This can truly change the course of business direction for a company. Lessons have a long way to go. Market is the best teacher. Want more information then visit Pritam Deuskar Wealthyvia site. Thanks Pritam Deuskar of Wealthyvia.com

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