Failed Stocks

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Stock

Buy Price

Sell Price

Buy Reason

Capital First

320

700

Success in Bajaj Finance made me invest here

Repco Home

650

147

Bought at 30 PE thinking that there is huge growth

Repro India

400

Hold.

Thought that this can disrupt the existing businesses in print

LT Foods

82

25

Tried to make quick money trading the stock

Rain Industries

240

180

Tried to make quick money trading the stock

Jagran Prakashan

140

115

Tried to make quick money trading the stock

ENIL

400

530

Bought this because media companies are operating leverage businesses

Everest Industries

450

220

Bought because of low PE of 10

Care Ratings

990

350

Ratings business is cash flow business and the stock came down due to investigations


Learnings:

1. In finance business high valuations are given to only few companies. Rest of the companies command moderate valuations.

2. Buying high growth companies at high valuations can be risky. The growth can fall or market fancy for those growth stocks can come down.

3. Some companies look like they are going to disrupt the existing models. There is no need to buy such companies immediately. Just keep tracking position and once the company starts delivering in terms of earnings then go for them. Otherwise there is too much of opportunity cos

4. Trading in stocks should be avoided. If you are long term investor then don't try short term just because you have some spare money.

5. Buying another company just to recover lost money in some stock is dangerous. Except that money is lost and move on.

6. Get out early from the businesses which have threat of getting disrupted.

7. Company in trouble need to be bought with a lot of caution. Bad things can keep coming and stock can fall a lot lower than we thought.

8. Cyclical businesses should be bought when earnings are low.

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