Dear Investor,
Hope you are doing good and masking up to prevent the spread of Covid-19.
Today, I would like to share with you some random examples of wealth creation with Stock Investing. I have experienced them personally and believe you too can benefit from them.
#1 – Limited Losses, Unlimited Gains
We have closed recommendation on 2 stocks since Feb’21. Both were initiated in 2018.
Aarti Drugs – Closed with Gains of 400%
Mirza International – Booked Loss of around 50%
The thing is, when investing in stocks, there are bound to be mistakes. Instead of treating them as fines and avoiding them, treat them as tuition fees and try and make your research and thought process even better.
The best part about investing in stocks is that the gains are virtually limitless while the losses are capped.
In our 10 years odd experience of recommending stocks, we have noticed the following:
- 3 out of every 4 stocks recommended by us have delivered positive returns.
- Max. return by a stock – 2,138%
- Avg. Return on Profitable Stocks – 230%
- Avg. Loss on Negative Stocks – 28%
Thus, not just the mistakes are fewer, even the losses are lower on the wrong ones. Unless, of course, you keep cutting your flowers and watering the weeds.
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#2 – Power of Dividends
It doesn’t hurt to get dividends along with capital appreciation.
Control Print – A stock we initiated in May’14 around 50 odd levels and still holding has already paid back 40 rupees in the form of dividends. Current market price – 260 +
That’s like getting back 80% of your principal back with the bonus of 400% + return through capital appreciation.
Source: bseindia
#3 – Longer time horizon
Let me share with you two charts:
This stock went nowhere for 6 years and delivered almost zero returns during the period.
Let’s look at another chart of the same company:
Both the charts are of the same company, i.e., Acrysil.
The only difference is the time horizon. First one is for 6 years and the second one is for 9.5 years.
The same company which delivered zero returns over the course of 6 years has delivered over 2000% returns in 9.5 years.
Not every stock will end up delivering 20x in 9-10 years and one will have to be especially careful about the timing in the cyclical companies; however, the general idea is expanding time horizon when investing in stocks/businesses helps.
Disclosure: I have personal investment in Control Print and Acrysil.
Best Regards,
Ekansh Mittal
Research Analyst
Research Analyst Details
Name: Ekansh Mittal Email Id: [email protected] Ph: +91 727 5050062
Analyst ownership of the stock: Yes, in Control Print and Acrysil
Details of Associates: Not Applicable
Analyst Certification: The Analyst certify (ies) that the views expressed herein accurately reflect his (their) personal view(s) about the subject security (ies) and issuer(s) and that no part of his (their) compensation was, is or will be directly or indirectly related to the specific recommendation(s) or views contained in this research report.
Disclaimer: www.katalystwealth.com (here in referred to as Katalyst Wealth) is the domain owned by Ekansh Mittal. Mr. Ekansh Mittal is the sole proprietor of Mittal Consulting and offers independent equity research services to investors on subscription basis. SEBI (Research Analyst) Regulations 2014, Registration No. INH100001690
The views expressed are based solely on information available publicly and believed to be true. Investors are advised to independently evaluate the market conditions/risks involved before making any investment decision
A graph of daily closing prices of securities is available at www.bseindia.com (Choose a company from the list on the browser and select the “three years” period in the price chart
This report is for the personal information of the authorized recipient and does not construe to be any investment, legal or taxation advice to you. Ekansh Mittal/Mittal Consulting/Katalyst Wealth is not soliciting any action based upon it. This report is not for public distribution and has been furnished to you solely for your information and should not be reproduced or redistributed to any other person in any form. This document is provided for assistance only and is not intended to be and must not alone be taken as the basis for an investment decision. Ekansh Mittal or any of its affiliates or employees shall not be in any way responsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this report. Neither Ekansh Mittal, nor its employees, agents nor representatives shall be liable for any damages whether direct or indirect, incidental, special or consequential including lost revenue or lost profits that may arise from or in connection with the use of the information. Ekansh Mittal/Mittal Consulting or any of its affiliates or employees do not provide, at any time, any express or implied warranty of any kind, regarding any matter pertaining to this report, including without limitation the implied warranties of merchantability, fitness for a particular purpose, and non-infringement.
The recipients of this report should rely on their own investigations. Ekansh Mittal/Mittal Consulting and/or its affiliates and/or employees may have interests/ positions, financial or otherwise in the securities mentioned in this report. Mittal Consulting has incorporated adequate disclosures in this document. This should, however, not be treated as endorsement of the views expressed in the report.
We submit that no material disciplinary action has been taken on Ekansh Mittal by any regulatory authority impacting Equity Research Analysis.
Disclosure (SEBI RA Regulations)
Whether the research analyst or research entity or his associate or his relative has any financial interest in the subject company/companies and the nature of such financial interest – Yes, in Control Print and Acrysil
Whether the research analyst or research entity or his associates or his relatives have actual/beneficial ownership of 1% or more securities of the subject company (at the end of the month immediately preceding the date of publication of the research report or date of the public appearance) – No
Whether the research analyst or research entity or his associate or his relative has any other material conflict of interest at the time of publication of the research report or at the time of public appearance – No
Whether it or its associates have received any compensation from the subject company in the past twelve months – No
Whether it or its associates have managed or co-managed public offering of securities for the subject company in the past 12 months – No
Whether it or its associates have received any compensation for investment banking or merchant banking or brokerage services from the subject company in the past 12 months – No
Whether it or its associates have received any compensation for products or services other than investment banking or merchant banking or brokerage services from the subject company in the past 12 months – No
Whether the subject company is or was a client during twelve months preceding the date of distribution of the research report and the types of services provided – No
Whether the research analyst has served as an officer, director or employee of the subject company – No
Whether the research analyst or research entity has been engaged in market making activity for the subject company – No