Saturday, August 29, 2009

Some RULES................

I would like to share some thoughts which are as good as RULES which needs to be followed religeously.
The first RULE that I like and one should always remember is of Warren Buffet.

1st Rule: Never lose in stock market
2nd Rule : Never forget the 1st Rule.....

Everything comes in this defination.
Many readers writes me and tells me that I will hold for LT say for 2 yrs, 3 yrs 5 yrs and more.Good.Money is made in LT only.Those who held on to their stocks made millions.I am still convinced that the game has not changed.Those who are LT investors have earned.Whatever there may be arguement against it , it is still the same story.Invest for LT.Warren Buffet is still a living legend and he is still proving that those who held the stock for LT has come out winner.
But let me write one thing here.If someone has to follow WB rules of not losing money in stock market, one needs to take out money that have been invested and that money should go to bank and no where else.
In Stock market , worldover, they are very brutal.When the tides turn for worse there is no bottom.We all have experianced that in 2008.All the stocks were down by almost 90% whether it was a fundamentally good stock or not.L&T was available around 700.Aban Llyod was available around 300 and see where both are.All types of negative news kept flowing about these cos and when the market bounce backed they were first to come up.
It is very rare phenomenone that small investor end up buying A gr stock.They go for B gr stock or say Cash Gr stocks and they are still in nascent stage of growth.So while buying these stocks one needs to bookprofit whenever one finds that it has runup fast or overvalued.
Overvaluations is something which a small investor can't make out.Rather no one can makeout which has overvalued.There are no parameteres to look at that.
So the best thing is , Sell as soon as the stock doubles or gives 70-80% return.Sell, 40-50% of the stock.Take the money out.Put it in a bank.Wait for any downside and buy at lower rates so that your average price becomes less.If the stock do not come down, forget it.
Remember.....MONEY IS POWER.....I have always discussed with my friends that don't lose money in any form.Many use to argue with me, that with inflation going up and rupee depreciating what is there in accumalating money and putting in a bank at 9-10%.The rupee value has gone down and in present circumstances if one has to buy a house, a flat , it cost one some 10lacs to 30lacs depending on where you buy.But remember one thing.Rupee has still got the value.Money has still get the value.10 years back if some ask for Rs 5000 from some friends or relative, they will definately say ,that we have none or will give excuse that we just gave to our son or brother and hence we are sorry.But after 10 yrs , means even today, if we ask for Rs 5000.00 to someone , we will get the same answer.So Rs 5000.00 has the same value 10 years back and now.Rs5000.00 is peanuts in present circumstances and still no one will lend.
So money saved is money earned.I remember my father use to tell me, whatever you get as a salary is not your earning.Your "SAVING IS YOUR EARNING".The money you spent is gone.It is not with you then how can you tell it is your earning.Money whatever small amt it is , it is worth it.Save it.Money is to be saved.I don't say , one needs to be miser and not spend where it is needed.But always be on tose whether you are not spending somewhere not needed.
Take RISK but it should be calculated RISK.Be it in business or in stock market or investing in a plot .
Always remain alert.Follow the market whichever it is.Be it Stock market, land market ,Diamond market or chemicals, or any form.Only stock which are in A gr are fundamentally great where we can go to sleep for 5-10 yrs and one can end up not losing in it as they are already past the intials growth trouble.They have already made a name of themself.L&T , Tisco, Seimens, Thermax etc etc are such co where the orders flow in with ease because they have proved themselve for decades and hence orders will trickle there first.
B gr stocks are those which are known as upcoming companies still trying to make inroads in the market.So with a slight negative atmosphere these cos can lose the orders very easily and ends up in huge loss(eg.XL Tele).
I have been always writing here that SELL AS SOON AS STOCKS DOUBLES.Take the money out.The real Charm in investing is taking the money out.Do whatever you like with it.Buy TV, Buy a scooter, Buy a DVD Player, help some of your friends, relatives , needy, poor .The joy in buying something from the profit is great, joy of helping someone is enormous .One can't describe it.But the joy is unbound.
When one takes the money out, he is at ease.He feels very comfortable.Don't get satisfied with paper profit.Turn it in REAL.But at the same time I will also write that don't get out of the stock 100%.Never do that.As I have written , no one knows which one is going to be a multibagger , so hold on with the rest.But if you have taken the money out, you remained unpertubed if market goes down and all your paper profit is washed away.You will not repent that I got the chance but I missed it.
I hope readers of my blog will always remember these in mind and act accordingly and come out WINNER IN stock market......
I wish you all the best......

I would like to write some of my recents calls .....

1) Lumax Ind.....@94 on July 17 now @144

2) Kalyani Forge @ 87 on 18 @ 131

3) Gayatri Pro @ 166 on June 22 @ 280...

There are Scan Point Geomatics....@ 16.25 on 6 Aug is @ 29...and many more........UTV has gone upfrom 327 to 488,Maducon Pro has gone up from 50 to over 200,Torrent Power from below 100 to 235 not to talk about Selan Explo @ 110 now over 300,Alpha Geo around 120 now over 200...and many more.......
like Thermax,Seimens,ABB,Alsthom etc etc ........ I hope and wish all must be enjoying my calls and making loads of profit from it.........


  1. Dear Rajeevji,

    Can u give me ur top 5 picks if i wish to buy them in S.I.P. Manner for next 5 years.

    Waiting for your reply.

    Best Regards


  2. Goldy,
    There are no Top 5 picks.I think I have told you in past as well that read my answers to other readers and you will find some thing.
    I just wrote some stocks to Priya for buying.
    Goldy , please do not ask for individual advice.What one need to do and what one wants to buy is al your choice.I can't go on giving such portfolio advice.
    For 5 picks read my reply to Priya...which I have given recently..

  3. Dear raju bhai

    i would like to know regarding Innocorp , long long time back you recomended and i still hold them, also regarding vbc industry in which i earned lot and hold very few shares.
    please suggest are they still hold???

  4. Dear Sandeep,
    That decision u need to take.If you feel like selling you need to.I can only recomend it here.Buying and selling in all your hand or will rather say with everyone who deals in the market.
    The stocks can go up or down and I am not an operator.

  5. hi rajeev,

    im back again :-)

    just a quick query..

    why do you think that Kavveri Tele is a multibagger? any specific point?

    m waiting for ur reply...


  6. Priya,
    I will only say here that look at all the annoucement on bse site on Kavveri Tele.
    Look at the site.Learn to find facts on your own because this will give you conviction....
    Read all annoucement and if you feel asking me something on that do write me, I am always there....

  7. Hi Rajeev
    thanks for the services you render to the general investing public. Have you looked at the following penny stocks? Are they good for long term?
    - Cals refinery
    - ABM knowledgeware
    - Krishna lifestyle technologies
    - Mudra lifestyle
    thanks in advance for your expert opinion.

  8. Hi Vasanth,
    I think ABM Knowledge is looking good and I have already written in one reply to someone.
    Cals is good for very LT.
    No idea on last two....

  9. hi rajeev,

    I have gone through KNR construction..
    FV=10, BV=96, eqty=28cr, reserve=200cr, PE=6.5 ,industry PE=23, promoter holding 72%.
    huge order book

    I think it can be a multibagger in long term?

    What do you think?


  10. Hey Priya,
    KNR is looking good.
    Seems you are now becoming expert in finding multibagger.Great going.

  11. Dear Rajeev bhai
    i did not mean to ask you regarding selling of these stocks.
    I just want to know that are you still convinced on INNOCORP n VBC as i bought them on your recomendation list from MMI.

    Best wishes

  12. rajeev,

    i have a debt of 3 lakhs on me... loans etc etc...

    i wish these could be ridden off soon


    another upper circuit of artson :-( ... i want to cry now.... :-(... why artson is not stopping :-(

  13. i wish i could get another kwality dairy in making :-( (from Rs 11 to 350)

    and Veer energy from (Rs 2 to 200)


    i wonder how can i skip these great scrips