Our Losses in Shares ( Reprinted Post of 2011 )
Our Losses in Shares - Written in 2011
Very very interesting subject.
I must admit that I make frequent losses . But I try to be a long term investor. This I find reduces the losses. ( I prefer to hold shares in Physical rather than Demat ). My selection approaches are up to 40 % Large caps , low Beta , high Liquidity . For rest mainly Contrarian , Small Cap and High Beta
. ( Try to locate beforehand what experts would be recommending later )
MPS ( Macmillan )
which I thought would be another Educom . Bought a couple of years at around Rs. 71 . CMP around Rs 40.
( got seduced by its less than 2 PE ratio ). Bought around Rs. 270 ( when the share price was moving up ,the feel good factor made me buy even more ), CMP around Rs. 200. I later realised that I bought when the traders syndicate was booking profits ( I have unwittingly contributed to their profits . Case of Dumb money Vs. Smart Money )
Bought around Rs. 70 , CMP Rs. 60. Forbes group yet to oblige me.Forbes group shares proving to be very stubborn with regard to value unlocking . I consider Forbes And Company ( with all its subsidiaries including the 100 % owned Eureka Forbes ) to be very valuable.
Indian Card Clothing
Bought around Rs. 120 ( later also at 102 ). CMP Rs. 110 . Got carried away by its MNC status , low capital base , Reality project in Pune ). Recently , while passing in front of ICC's modern factory on very large land at Nalagarh ( Ropar - Nalagarh Road ) got very impressed . Took out cell phone while travelling in car ( Nano ). Placed order for further buy. ICC yet to oblige.
Saw their profits in Ranbaxy share sale. Their Book Value . Bought around Rs. 600 - CMP Rs. 400
Bought a few years ago around Rs. 1400 . CMP Rs. 700
Both investments in Oscar Invest and Nalwason taught , hopefully, valuable lessons regarding the deception in so called asset laden investment holding companies .( God bless one of the former Directors of The Punjab National Bank Limited who gave his PNB Finance ( in small hundreds ) at par. ( He told me that he had purchased these as a minimum holding requirement for Directors ). Later applied for rights .
While in Vapi ( Gujarat ) was impressed by their factories ( from the road ). Bought around Rs. 6 . CMP Rs. 4. Got disenchanted with so called " Penny Stocks "
Bought around Rs. 800 .
Bought around Rs. 160 . CMP around Rs. 100. Volatility in commodity shares ( pig iron )
Tata Motors DVR ( Differential Voting Rights )
Thought it would quote at a premium to ordinary equity. but instead it quotes at 40 % + discount. Similarly , cannot understand why Tata Motors associate company Automobile Corporation of Goa came down after excellent results ( 125 % Dividend )
But We still believe in the India's growth story and in long term prospects of Indian shares ( we believe we have just begun )
And overall , we are not in loss
I am 51 years old. ( in 2011 ) After the last 30 years + association with shares , I have learnt that for the losses the blame lies solely with me. For profits , God and blessings of my elders are responsible.
Being humble pays. Always try to learn from others. The day one feels he has become a Master, well that day his goose is cooked.
In share markets " JO JEETA WOHI SIKANDAR "
Ashwani Kumar Aggarwal
June 19, 2016
Mahendra Kampani- Our Tributes and Gratitude
When I passed out from St. Stephen's College , Delhi and settled down in Jalandhar in 1980 , I wanted to buy some ( very small number ) of shares which were available only at Bombay Stock Exchange.
I contacted many Share Brokers of Mumbai. All refused to entertain my small amount transactions. Nearly all would simply not reply at all.
But , the biggest Mumbai Share Broker and President of BSE , Late Mr. Mahendra Kampani of M/s Jamnadas Morarjee And Co. ( JM Financial ) not only accepted my small order but ,also, gave me valuable guidance and encouragement.
I had given an order for purchase of 100 L and T ( Rs.10 paid then ).
I received a personal message from Mr. Mahendra Kampani that L and T is greatly tipped in the market and has gone up from Rs. 45 to Rs. 50. . My order could only be executed at Rs. 50. However , if I did not wish to Buy at Rs. 50 , I should so convey and my order would be squared up with no loss to me.)
Great People are , always , humble.
May the Great Mr. Mahendra Kampani's soul Rest in Peace ( He died in a car accident in 1997 at the age of 58 )
Trivia : A Telephone Conversation
akaj88 : Hello , Hello Balmer Lawrie And Company Kolkata ?
BLC : YES
akaj188 : Sir , I am your Shareholder Calling from Jalandhar Punjab
BLC : YES
akaj188 : Sir , I have received by Speed Post a notice from you that for a Remat Share Certificate I need to send you a Demand Draft payable at par at Kolkata for Rupees Two.
BLC : That is what the Articles of Association of the Company state.
akaj88 : Sir , it will cost me Rs. 40 commission to purchase the Draft and another Rs. 25 for the Speed Post.
Sir , May I ask you for a favour
BLC : YES
akaj88 : Sir next time I come to CAL , I would treat you to MASHOR JHOL and ROSHOGULLAS . For , now , please give me Rupees Two and credit the same for the New Certificate
Ashwani Kumar Aggarwal
( akaj88 on moneycontrol.com Board )