Exploring the Stock Market: A Candid Insight from an Influencer

TLDR;

• Know the power of patience in the stock market, exemplified by the 10x growth of Hindustan Unilever over 13 years.
• Familiarize yourself with the concept of hedging your investment, like buying put options.
• Dive deep into the performance and future prospects of specific stocks like Symphony, Whirlpool, NGL Fine Chemicals, and others.

The Value of Patience in Stock Market

The first principle mentioned here is the value of patience in the stock market. A classic case used here is Hindustan Unilever. In 2010, Hindustan Unilever was trading at roughly 210; 13 years later, it is trading at 2500. This is a 10x or 10 times growth in 13 years.

• The stock had periods when it gave zero percent return, like from 2012 till 2014.
• However, patients during these low periods have been rewarded with significant growth over the long-term.
• This principle is relevant for other stocks as well, example, HDFC bank.

Hedging Your Portfolio

It is essential to learn how to hedge your portfolio, especially for those scared of losing money in the stock market.

• One way of hedging your portfolio is to buy put options.
• A tool to do this effortlessly is the Market Linked Debenture (MLD) provided by Incred Money.
• MLD is a financial instrument that allows you to hedge your downside risk.

Insight on Specific Stocks

Symphony / Whirlpool

Two stocks that the influencer is currently experiencing a loss on are Symphony and Whirlpool.

• The collective loss is around 10 to 12 percent.
• There's no intention to downward average these stocks due to the rule of diversification.

NGL Fine Chemicals

NGL Fine Chemicals is a smaller player that manufactures active pharmaceutical ingredients(API) for animals.

• The stock has a loss of 25 percent.
• However, it represents a potential for growth if the industry recovers.

Avas Financiers and Bandhan Bank

Avas Financiers and Bandhan bank are primarily into housing loans.

• The sector seems to be waiting on an announcement cut in interest rates.
• These stocks are likely to rally when such an announcement is made.

Dmart

Dmart is still a worthwhile stock despite a high PE ratio of 99.

• It has seen a consistent growth in profits over a decade of 38, 25, 22 percent.
• Dmart may be a consistent compounder type of company over the next decades.

Remember, the information in this blog post is gleaned from a YouTube video by a stock market influencer. Always do your research before investing.