The idea behind the blog is to help me understand and document my investment thesis for stock selection. I will document the initial thesis and then develop it over time. The idea is to look for stocks where I can invest large amount of capital for the long-term, the longer the better. I am not completely averse to the idea of investing for the short-term. However, the capital deployed to short-term investment will necessarily be small and hence the potential gain per unit effort will be limited. Hence, the preference for long-term ideas where one can invest over time.
Here is a basic check list for stock selection.
My intention is to develop all posts, including this one, over time. However, I will keep all originals intact. The latest version of each post will be marked by label 'latest version'.
Here is a basic check list for stock selection.
- High corporate governance standards: This is rather obvious. This is a stringent criteria which limits the investable universe to companies and promoters who have a history of good corporate governance or are in businesses where corporate governance cannot be too lax.
- India focus: India is growing faster then most other countries where Indian companies do business. This excludes most IT, pharma and export-oriented companies, as well as India based MNCs such as Tata Motors, Hindalco etc.
- No PSUs: Management motivation and promoter priorities are major concerns. Examples include public-sector banks and oil marketing companies.
My intention is to develop all posts, including this one, over time. However, I will keep all originals intact. The latest version of each post will be marked by label 'latest version'.
