So for last one month markets are flirting at 9000 level to 9300 level and we are booking profits bit by bit.
We have booked some profits in Adani , Rain , Westlife , Escorts , Dewan housing etc and sitting on 15 % cash as of now. Some of the profits booked from small and mid cap like associated alcohol etc are plowed back into Reliance and Tata Motors.
So, it’s tough times as — “I will tell you the secret to getting rich on Wall Street. You try to be greedy when others are fearful. And you try to be fearful when others are greedy. –Warren Buffett”
The most painful part is seeing other people making money especially on twitter and CNBC markets and we sit like dumbs still not getting what’s happening … some examples are below…
- Dmart IPO- 7000 crore sales 200 cr profit valued as of now 50,000 crores … may be a case of too little shares for too many people. People buying after 100% premium listing and still having 40% profit ..awesome.
- Infibeam– From 400 to 1400 Rs … why ? why? why ?
- Delta corp — Sale around 400 Crore valued at 4200 crores … hmm maybe because of Badshaah and someone having insider information of opening of their CASINO THE BIGGEST BET …
- Real estate – Stocks like Sobha devlopers , kolte Patil have doubled in one month … So much so Sobha directors sold some of their stakes … to fools … There are no sales for real estate and stocks get doubled … may be … We don’t know. POINT TO PONDER-For last three years there is no appreciation on real estate so you an investor lost approx 25% of interest .. and if on leverage you must have paid 30% interest .. so anyhow it’s always banker who gets rich see HDFC bank.
- RERA– Builders offering so many discounts because RERA is seriously consumer friendly small builders are going to get crushed.
- Affordable housing — Hmm So much supply and less demand .. upside capped. And why buy homes when you can buy stocks.
- Bank charges-– bank have started putting 100 to 200 Rs on anything like customers have given deemed approval for everything.. why ? they need profit which is not coming from loan growth.
- Archies Ltd– Now that’s hitting upper circuits because … oops don’t want trolls…
All of above is making us really really nervous … and you know why ???
a) While sitting on cash we finished
and as Mr. Graham says never overpay .. never give heed to Mr. Market . In these tough times when we are sitting on cash we keep ourselves calm by keeping our conviction in BENJAMIN GRAHAM
b) Mr. Trump-– Now he is making everyone tense. We are really worried about USA attacking Syria as this will lead to “PISSING CONTEST “. Really Trump has made its first move and we are really shocked from Russian silence… or we at Shikar Capital are bunch of idiots
So What we do during these times ??
a) We read books, a lot of them .. like an Intelligent investor and Our personal recommendation Tools of Titans what a book may be the ideas copied from DAILY RITUALS.. but equally interesting read.
b) We finished Snowball- and we learned that a) Invest on people b) Book profits
Last but not the least — Are We Investing ??
Yes, We have increased our holdings in Tata Motors. why ?
They have sold 600,000… i.e 6 Lakhs of those Rovers and Jaguars highest sale of all time and total vehicles sales of Tata Motors crossed 1,000,000.. i. e. 10 lakhs .. A very good number
We still believe in TaTa Motors story and from any yardstick it doesn’t deserve a valuation of 1,50,000 Crore .. market value….
It has to be tripled to match value .
With Mr. Chandra at helm, we are really happy holding Tata Motors as ur top holding .
Mr Chandra wrote a very honest Letter to Tata motors employess, and we at shikhar Capital pay premium for honesty
““It’s upon us to change the game and get to a high which we’ve been used to in the past.”“Growth is the source of energy. When growth comes, everybody talks about us and people get excited.”
“Business is about consistency,” he said, adding that Tata Motors has been applauded in the past but it’s been facing criticism lately. Among other reasons, he attributed the undoing of the passenger vehicle business to gaps in products and delayed launches.
He applauded company’s UK subsidiary Jaguar Land Rover Automotive Plc. “JLR had an excellent year and the business is continuing to see success and launching great products.”
“We’ll get to a new high,” Chandra said,
Also, we increased our holdings in Adlabs .
This theme park is next to richest Indian City Mumbai.. valued at 600 cr + 1000 cr debt ..and a man with a vision…
We pay a premium for vision…