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Stock Market Investing Strategies

The document provides sources and approaches for generating investment ideas. It lists potential sources like corporate announcements, press releases, annual reports, and discussions with peers. It also outlines approaches like tracking corporate events like management changes, industry developments like regulatory shifts, and key company metrics like revenue growth and insider buying. Finally, it lists some things to avoid as an investor like commodity businesses near peaks, government companies, and taking a short-term view of investing.

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Prateek Vaish
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228 views2 pages

Stock Market Investing Strategies

The document provides sources and approaches for generating investment ideas. It lists potential sources like corporate announcements, press releases, annual reports, and discussions with peers. It also outlines approaches like tracking corporate events like management changes, industry developments like regulatory shifts, and key company metrics like revenue growth and insider buying. Finally, it lists some things to avoid as an investor like commodity businesses near peaks, government companies, and taking a short-term view of investing.

Uploaded by

Prateek Vaish
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Book recommendation:

 Investing for growth


 Capital Returns
 You can be a stock market genius

Sources of Idea Generation:


 BSE corporate announcements
 Press releases, investor presentations
 M&A deal/Joint venture/Partnership agreements
 Quarterly results - watch out for breakout post a big earnings surprise (PEAD)
 Conference calls (Trendlyne, AlphaStreet, ResearchBytes, Company website IR
section)
 Global peers commentary and outlook
 Management interviews
 Screeners (Tijori Finance, Screener.in) - big capex, 52-week/all-time/post IPO
new high
 Equity research reports (Ambit, ICICI Securities, Spark Capital, IIFL, Nirmal
Bang, Axis)
 Annual reports, credit rating reports, DRHPs, QIP Offering Documents
 Investor letters (Solidarity, SageOne, Equirus), Investing conclaves (TIA, IIC) and
webinars
 Fund managers' top 5 holdings from PMS Bazaar website
 Bulk deals+block deals+insider buying (StockEdge), 52-week high volume list
 Magazines/Newspapers/Industry-specific websites
 Discussions with peers and colleagues; views of the leading analysts of
individhal sectors
 Social media (Twitter, WhatsApp, Telegram) and online forums like ValuePickr,
Multipie

Approach for Idea Generation:


1. Track corporate events:

a. Change in promoter/ management - CG Power, Indiabulls Real Estate, 


b. Demergers, block deals, merger arbitrage - Globus Spirits block deal,
equitas merger arbitrage
c. Significant capex, product mix change
2. Track industry development

a. Sectors undergoing supply side consolidation


b. Regulatory changes
c. Emerging sectoral adoption trends
3. Track key company metrics

a. Leaders in niche sectors with low competition


b. Low leverage & high ROCE
c. Revenue growth (operating leverage)
4. Track investment activities

a. PE / Hedge funds/ Mutual funds


b. Respected individual investors
c. Insider buying

What I Strive to Avoid as an Investor


 Invest in commodity and cyclical businesses near the peak of their cycle
 Invest in government-owned companies: Promoter's key motivation is not
wealth creation for shareholders
 Invest in project-based businesses dealing with government tenders
 Invest in melting ice cubes, i.e. "value traps"
 Venture outside my circle of competence driven by the lure of quick short-term
returns in bull markets
 Invest in companies with bad accounting quality/corporate governance
 Take a short-term view: Investing is a long-term game. The more time you give
it, the higher the odds of success

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