Key Learnings from Masterclass with Super-investors- Govind Parikh

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Govind Parikh is a chemical engineer by qualification. Starting as a stockbroker, he became a successful investor by investing in several blue-chip companies very early. His mantra is to invest in top-quality businesses, backed by credible management, at the low market cap, and hold them for a long period of time- a strategy that has delivered excellent returns for him.

Return Filter

  • Take a small position and closely watching the company and slowly build up the position, in a decided price range.
  • For big bets, only invest if the quality of the management is top class.
Generating investment Idea
  • Through following the market.
  • Through meeting the company's management.
  • Go to the AGM.
  • By visiting plants.
  • Through meeting the distributors.
Cement Industry
  •  In cement industry, transportation is major cost for both the raw material and finished goods.
  • It helps when plants are located in different places and also if the grinding units close to the markets.
Managing risk at portfolio Level
  • By keeping 10-15% cash in the portfolio.
  • Through churning the portfolio in terms of allocations to manage the risk.
Cyclical stocks
  • Buy cyclical stocks when the cycle is bad and you sell them before the peak. '
  • Buy them when they are extremely cheap and sell them whey they are a little cheap.
Learning through Major Bubbles
  • In technology boom of 2000, he did not invest as he did not understand the sector. 
  • "We have to learn to live within that 25%, we should not think about the balance"
Books 
  • Philip Fischer's common stock and uncommon profits.
  • Peter Lynch's One up on wall street
  • Benjamin Graham's The intelligent investor.

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