FriendsโฆThe most powerful AI ๐ค on this planet (Opus 4.8) was arguing with me on some complex financial ratioโฆ after 10-15 minutes of to and fro arguments, it accepted defeat โฆ Going forward, no AI ๐ค will argue with a Rankholder Chartered Accountant on the matter of Finance ๐ต.
Value Investing โ Educational Series
A question you should never ask a barber
Imagine you walk up to your neighbourhood barber and ask him a simple question. "Do I need a haircut?" What will he say? You already know.
https://t.co/Jp6gSyG2vo
Value Investing โ Educational Series
In nature, lasting success is mostly about not dying โ not about being the fastest. One India-focused fund manager built a remarkable record by applying that single idea to the stock market.
https://t.co/as9bzqEvYa
Value Investing โ Educational Series
In nature, lasting success is mostly about not dying โ not about being the fastest. One India-focused fund manager built a remarkable record by applying that single idea to the stock market.
https://t.co/as9bzqEvYa
Few months ago , I gave some of my important stock filters for selecting a stockโฆ If at that time you read and followed my filters, you would have found Rajesh Exports ltd fraud before all othersโฆ Because one of my filters was โtax paid should be approximately 25% of profitsโโฆ.. Rajesh exports was paying only 5% of net profits in taxes since many yearsโฆ So friends, being a Chartered Accountant (like Rakesh Jhunjhunwala) is an added advantage in stock investing career.
Dear Wealth Builders,
When I pick stocks, I use a strict set of filters... These are non-negotiable... There is a famous saying -"When you give someone a fish, you feed him for a day. But when you teach him how to fish, you feed him for a lifetime"... So below I am telling you some important filters I use while selecting stocks.
Return on Equity > 15% โ because a business that cannot earn high returns on shareholdersโ money is not worth owning.
Cash Flow from Operations > 60โ75% of Net Profit โ because profit without cash is just accounting fiction.
Contingent Liabilities < Net Profit โ because hidden risks can wipe out future earnings in one stroke.
Promoter Holding > 45% โ because if owners themselves donโt have skin in the game, why should you?
Price to Book < 6 โ because valuation matters; paying any price for growth is the biggest retail blunder.
Debt to Equity < 0.2 โ because excessive debt kills even great businesses when cycles turn.
Increase in Net Block > 50 โ because real growth shows up in expanding productive assets, not just in stories.
Market Cap > โน50 crore but < โน2,000 crore โ because I focus on scalable yet undiscovered opportunities.
Tax Paid > 25% of Net Profit โ because consistent tax outflow means profits are genuine, not manipulated.
Dividend Payout > 2% โ because real cash distribution shows shareholder friendliness.
3-Year Sales Growth > 8% โ because without top line growth, profits are not sustainable.
Other Income < 40% of Net Profit โ because real businesses earn from operations, not from โotherโ sources.
5-Year Average ROE > 15% โ because consistency over cycles is more important than one good year.
Return on Assets > 10% โ because assets must generate adequate returns, or else management is inefficient.
India's registered investor base has nearly quadrupled โ from roughly 3 crore to more than 11 crore unique investors on the NSE in just a few years โ yet ask a room full of these new shareholders where the independent auditor's opinion sits in an annual
https://t.co/euCWMGidjF
Every few months, a new fraud is discovered in India .. Now Rajesh Exports ltd came out as fraud โฆ Thatโs why while selecting companies I give highest weightage to Management quality and integrityโฆ Only when the tide goes out, you discover who was swimming ๐ naked.. ๐ฅณ
๐ฅ Quick clip: Cash & Equivalents as a Percentage of Market Cap
Full deep-dive: https://t.co/KCtWIxWbAP
Daily fundamental research: https://t.co/1VhgCLetVk
@itsshara_ai I start with quality before price: 10-yr median ROCE above cost of capital, operating cash flow that actually converts from profit, low debt, and a long reinvestment runway. Valuation is the last filter โ a cheap business with weak capital efficiency rarely compounds.
Dear Wealth Builders,
When I pick stocks, I use a strict set of filters... These are non-negotiable... There is a famous saying -"When you give someone a fish, you feed him for a day. But when you teach him how to fish, you feed him for a lifetime"... So below I am telling you some important filters I use while selecting stocks.
Return on Equity > 15% โ because a business that cannot earn high returns on shareholdersโ money is not worth owning.
Cash Flow from Operations > 60โ75% of Net Profit โ because profit without cash is just accounting fiction.
Contingent Liabilities < Net Profit โ because hidden risks can wipe out future earnings in one stroke.
Promoter Holding > 45% โ because if owners themselves donโt have skin in the game, why should you?
Price to Book < 6 โ because valuation matters; paying any price for growth is the biggest retail blunder.
Debt to Equity < 0.2 โ because excessive debt kills even great businesses when cycles turn.
Increase in Net Block > 50 โ because real growth shows up in expanding productive assets, not just in stories.
Market Cap > โน50 crore but < โน2,000 crore โ because I focus on scalable yet undiscovered opportunities.
Tax Paid > 25% of Net Profit โ because consistent tax outflow means profits are genuine, not manipulated.
Dividend Payout > 2% โ because real cash distribution shows shareholder friendliness.
3-Year Sales Growth > 8% โ because without top line growth, profits are not sustainable.
Other Income < 40% of Net Profit โ because real businesses earn from operations, not from โotherโ sources.
5-Year Average ROE > 15% โ because consistency over cycles is more important than one good year.
Return on Assets > 10% โ because assets must generate adequate returns, or else management is inefficient.
@mohitBangotra08 Exactly. The 93% stat gets dismissed as bear-market noise, but SEBI's data covers a raging bull market too. Losing money in a bull market with leverage is structural, not cyclical. Compounding needs time in the market, not timing with margin.
The Securities and Exchange Board of India reported that approximately 93% of individual traders in the equity Futures & Options segment incurred net losses, with aggregate losses crossing โน1.81 lakh crore in recent fiscal years.
https://t.co/h9tCdQfGFO