When a stock reacts to announced result in positively in unambiguous way in terms of price action and it happens in an environment that is marred with uncertainty and apparent worsening macros then you should not ignore it. Such stocks tend to deliver unsurprising outperformance. This, in and itself, is a set up that can...
Welcome to BNP PRO
Just like everything has started for you in life at some point where you took a seemingly non-descript decision but later on it turned out to be such a great thing, we hope that becoming PRO will be one of those defining moments for you in your life. Not everything starts great. Not everything that...
How to Find Multibagger
People have varied notions about how to spot a multibagger but if you understand the core principles of the field then all of it becomes simpler and easier. For finding multibaggers we will discuss simple process which will not involve what global landscape of the business is covering 15 MNC peers and without any channel...
Good Stock vs Good Business
Not every good business is a good stock. Not every good stock is a good business. Knowing the difference between the two decides how good CAGR you can generate. Few days ago we put out some polls. First we asked what would be average age of BNP followers – 50% people went with 35 years...
Profit Booking: An Enigma Yet To Be Solved
In market there are all kinds of opportunities – from trades of few minutes to trades that last few years. In that sense knowing when to enter and when to exit becomes crucial. Knowing when to enter is still easier for trading if you are following the bullish ideas such as All Time High, 52...
Method In Madness – BNP Way
There are many ways to make money in the market. What you should focus on is how simple, replicable it is. If something is simple enough for you and can be replicated then you can take it under consideration. Now only thing remains whether it suits you temperamentally or not. There could be many simple...
Value Investor vs Price Action Follower
We often say that it is a structural story to many stock. What do we mean by that? Structural story in terms of the future trend, industry direction and particular business direction. But does that mean as a shareholder you will make money in all such structural stories? Not necessarily. You see that is why...
Intrinsic Value? Fair Value? Is there Any Value in Calculating Them?
You will often see people calculating the value which they think business should trade at. Often it is known as fair value or intrinsic value of a company. It involves a lot of elaborate models with many variables. Usually the more complex it is better people consider it. Because more complexity is taken as a...
Don’t Buy Ice-cream in Winter to Eat in Summer
Today we will talk about the classic myth of buying the top quality stocks any time in market and be long term investor and see the portfolio in red for significant time. Unless you are buying classic 45° stock like Asian Paints buying at any time will result in years of wait to see the...
Dividend Investing myths and how growing earnings can change the returns
The moment somebody talks about dividend in India people start thinking about Coal India, IOC, PFC and so on. There is a difference between dividend yield and dividend investing. There is little to no relation between investing for dividend and current dividend yield on offer. The correct term to use in such cases is dividend...