Professional Documents
Culture Documents
Why We Miss Multibaggers
Why We Miss Multibaggers
Why We Miss Multibaggers
rajeevdesai.blogspot.com/2011/06/why-we-miss-multibaggers.html
Friends,
I have been trying to find this answer since long.
Why small investor miss finding multibagger?What are the reason why it doesn't come to us?
What wrong we do?
I feel that as a small investor or as being a smart investor we miss it.We ask too much
questions.Questions are neccessary but should not be a hinderence of picking a multibagger.
Why we do not have stocks like Infosys Techno?Why we don't have stock like Wipro?Why we
don't have stock like Delta Corp?Why we don't have stock like Keleidoscope?Why we don't have
stock like Kwality Dairy?Why we don't have stock like Symphony Comfort?
This type of stock is not with Institution nor with HNI's or DII's.Why that happens?
The reasons are many like:
1/2
doing or hurting someone.Then it becomes our way of life.We becomes so self centered that we
don't see whether we are hurting someone.....We start finding reasons why we did that and
justifies our wrong doing....
We need to think on that. I even go and say to that extend to even those financial Wizard( MBA's,
CA;s, etc) that find why you are not able to pick such stocks? Find out the reason.What is wrong
in coming to pick up stocks that the multibaggers stocks are eluding them.
But who cares ?All wants to have their own way of pie of commission or pay or salary.They invest
peoples money.They get salary for that.Now what return investor will get from their fund who
cares.
I liked the way Vikram Pandit did it.He said he will take just $1 as salary untill Citi gr do not come
in black for 3-4 qrs and he did exactly what he said.Took salary of $1 for 2 yrs.How many fund
managers do this.Ofcourse what he did was a routine things to bring back the Citi gr in black like
trimming down the expenses by laying off employees, selling assets etc....
Well, coming back to, why we are not able to hold multibaggers, the other reason I am seeing is
we sell them feeling them as fully priced.I am sure there can't be a single person who must be not
repenting why he sold that stock which gave multibagger return after selling.Why we sell a
multibagger?We become expert.We start thinking about the valuation.We feel that it has runup
fast and so we need to sell and we can always buy later.But that never happens as when we sell
we buy something else.
As I have written in my post of " How to pick a Multibagger" the eq is very important.Small eq has
always advantage.BV is another point to look at.Promoters stake over 70% is a huge huge
positive......visit my post of "How to Pick Multibaggers" again....
If we take a recent call of Digjam Ltd which I gave, it is a loss making Co but it is a branded
product and coming from non other then Birla.Digjam Ltd can become a future multibagger.But
the thing is when a stock is in 10's range no one believe it and then after 3-4 -5 yrs when it
becomes multibagger , we repent.
2/2