Waiting for more Clarity

Hi Friends,

I hope all of you might have aware about the new SEBI restrictions by this time.

I, as well as lot of value hunters didn't have a concrete idea about the level of restrictions imposed.

Any how it’s clear that, it's not proper to give a BUY / HOLD / SELL call on any particular stock unless you are a SEBI registered research analyst. So from here onwards I will not be giving any particular call on any stock nor new monthly SIP candidates in the blog (as it indirectly giving a BUY recommendation).

[Till more clarity emerges on the restrictions; or till I register with SEBI] 

The present value of portfolio is 2.52 Lakh (with a total invested corpus of Rs.1.25 Lakh in a span of six month).

My view about new SEBI norms

According to me, the new SEBI rules are having very good objectives and in need of the present situation. There are a lot of firms / people giving different recommendations through TV / websites / blogs, and the sad part is that more than 80 % are having mischievous crooked intentions. I did know few such blogs personally too, but don't want to name it publicly. So, hopefully, these restrictions may have better effects going forward.

MVPP blog will continue in these modified lines :

Personally I think, the learning / or acquiring knowledge is more important than simply following any blog / analyst. Sure, a good blog ( like value pick blog) will help you to reduce your searching, but it should not be the end point. Even if it’s recommended by me or the Great VP, we should be in a position to analyze that picks ourself.

With the new SEBI guidelines, the searching time of an investor will increase and inorder to find a multibagger we may have to turn every stone that's untouched. Of-course it’s a tedious task, but I think it’s more important to hold on our winners well enough is more important than finding new multibaggers in every month.

Greatest Example:

If we take the average number of the total companies invested by total number of years, by the greatest Buffet – Munger pair, it will be just 1 share / year!! So inorder to make a fortune in share market, you don’t have to find too many number of picks, but need to find those winners with a moat, and hold on; and remember - you just need to find only 1 idea per an entire year :)

So from now onwards my concentration will not be any company specific; but towards the basic causes behind a huge multi-multi bagger. Similarly the essential points required to develop the skills to evaluate a company.

The series on 6 Most important factors to consider while searching for a Multibagger and similar postings will be continued.

Happy investing.