The second most enjoyable part of being an equity investor is discovering new investment ideas and investing in those companies. Some of you might be wondering what the most enjoyable is but I won't tell you right now. When you come upon a good stock that you haven't considered before, or maybe haven't even heard of before, it's an exciting, thrilling feeling. You rub your hands with anticipation - figuratively speaking - and buy that stock.
Now the fun part is over, and the hard work and the boring part begin. You have to monitor the company and the stock. You have to track corporate news, financial results, competitors, any sector-specific events, etc. Not only is it boring but also stressful. It's stressful because, unlike when you were researching the company before buying, you now have actual money at stake. With every bit of negative news, you need to take a call about whether the stock is worth holding on to. With positive news, you have to decide whether to buy more. The price rises - does that mean better value for buying more or a warning signal or just the randomness of the markets?
So, what can Value Research Stock Advisor do for you? The answer is simple and straightforward - it makes the boring, hard and stressful part of investing easier and simpler. Not just the ones above but even those that come long before you start investing. Those are just some of the things that our team of analysts and researchers does for you - the vetting of dozens of ideas down to a few, the incessant checking and double-checking of the data, the months and years of constant monitoring. Essentially, all the non-fun parts of investing.
If I have to give a bland description, Value Research Stock Advisor is focused on quality stocks which are available at a reasonable valuation with a long-term perspective. But I'm merely stating the obvious there. Everyone in the investing world says this or something like this. I mean, who would ever say the opposite? Can you imagine someone saying that they are focused on low-quality stocks that are available at high valuations and only have a short-term perspective? However, talk is cheap, and many people end up actually doing this kind of anti-investing despite the best of intentions and the grandest of statements.
What Value Research Stock Advisor members get
- Access to all our (currently 51) stock picks
- 12 Best Buy stocks selected from our recommendations. Use this set to start building your portfolio right away!
- The complete investment thesis for all recommended stocks so that you understand why you are investing
- New recommendations as soon as they are released
- Continuous updates and analysis on all recommended stocks straight from our dedicated analyst team
- Tools and data to research and analyse any other stock
Our process is well thought out, tried and tested. We break down these broad goals into many steps and perform a matrix of checks and balances that ensure that the individual elements of what our members need - quality, value and the long-term perspective - all stay intact. It's a process that combines data as well as subjective judgement, both in perfect balance.
Subjective judgement is important and comes with experience as well as being willing to ask tough questions. Judging stocks in a supposedly objective manner without understanding the subjective and 'soft' parts of the investment logic leads investors to a position where they don't really understand anything meaningful. The opposite can be a problem too. There are many businesses, including, unfortunately, the ultra-hyped 'start-up' types, where the narrative is great but the numbers don't match up to the narrative. In fact, the narrative is all there is, and a reliance on the narrative alone leads to misunderstanding and mistakes in valuing the business.
It's fun to listen to the stories and get carried away by the stories. Value Research Stock Advisor balances all parts - the numbers validate the story and the story validates the numbers. We make sure that the validation works in both directions and points to the same conclusion. The temptation we never fall for is to let one of them compensate for a weakness in the other. That's always a mistake in equity investing and one that's easy to make in the thrill and excitement of finding a new stock to invest in.
The other important element that we deliver to investors is the continuous evaluation and revaluation of what we have recommended. The numbers and the narrative must stay intact and must keep moving forward. At no stage can an investor afford to get ahead of reality or fall behind it. This second part is just as important. Investors make mistakes when stocks decline, as well as when they rise fast. I remember, many years ago, paying Rs 40 a share to buy a stock that eventually became one of India's greatest blue chips. When it crossed Rs 80, the broker started chasing me to sell because, as far as he was concerned, the job was done, and it was time to churn my holdings and earn some commission. I didn't listen and the stock eventually became a multibagger. It's still going strong and selling it at Rs 80 because the money had doubled would have been a colossal mistake. We not only point our members to such stocks but prevent them from making this kind of mistake. That is actually more valuable.
In short, we ensure that the exciting parts are done systematically and the boring parts are never ignored!
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