The Reading dose – 4

Continuing the series..

1. Evolution (Click here): I discovered this blog rather recently and reading stuff here has been quite an experience, do read this one on great insights on evolution and the difficulty in understanding it

2. Learning it right (Click here): This one is really insightful, do read

3. Banks(Click here): From one of my favourite professors, comes another deliberative read

Keep reading!

 

 

The reading dose -3

Here’s another one in this series:

1. The “Bubble” in quality (Click here): This one is really insightful, it makes you think about what kind of expectations are built into the stock price and what returns you are willing to settle for as an investor

2. Holding companies (Click here): Interesting article from Neeraj, whose blog I follow regularly, this one throws light on how one can go about investing in holding companies

3. Conviction to hold (Click Here): This one is a must read, it gives a very good insight into how one can and should develop conviction to hold companies they own

4. Jealousy & Envy: (Click here): This one is a very good read written by Vishal at Safal Niveshak, do make it a point to read this

 

Idea generation

I have come to realise, there are 4 pillars to the investment process:

1. Idea generation

2. Analysis

3. Buying & allocation

4. Selling
Today’s post is about the first!

There are over 4000 listed companies in India alone, picking investments which can give you decent returns can by itself be a challenge, I have listed some ways you can pick quality companies from the available universe.

1. Quantitative screens : This can be a great starting tool to find interesting companies, you are very likely to tumble on great small / mid-cap ideas which are otherwise ignored and not followed widely by mainstream financial press the best screener for Indian markets is screener.in. you can also use the screener on the edelweiss website

2. Blogs : These are like gold mines, you will chance upon some of the best companies to invest in. The best part is that most of the initial research is already done for you, it’s an excellent starting point to dig deeper. I follow a multitude of blogs and really depend on them for generating new ideas.

3. Paid subscriptions : There are many paid online portals and blogs offering subscription based recommendations, this is money well spent. Some of the ones which are really good are blog.rcfunds.com, theequitydesk.com, equitymaster.com, katalystwealth.com etc. In addition to this there are also magazines one can subscribe to, I subscribe to capital mind, often it has decent ideas to offer.

4. News & exchange filings : Often mainstream news and exchange filings, can throw up interesting ideas. One can get a good idea of future plans of the company, buybacks, splits etc.

5. Industry sources : Sometimes you may have industry network which could lead you to discovering interesting ideas often these can give you very good insights to the business model of the company and its management

6. Observation : This is the most underrated source to generate ideas, there are so many products we use on a daily basis whose companies are listed, Peter Lynch, the legendary fund manager made some of his best investments this way

By no means is the above list an end, ideas can come from all kinds of sources, however this can serve as a decent starting point.

Happy Investing!