Since the debate on 'What is quality' is never ending, here is a thread on few points that I feel useful in judging if the company is a quality company or not.

Have a look at the entire thread & please add more useful points from your end.

Please RT for wider participation.

Secret towards being successful - Simple yet powerful rules.

Create your own luck.

Thread - Take a printout & read it again & again in your leisure.

1. Invest some part of your income in yourself

It’s only when you invest in something that you have the motivation to make it happen.

You are determined by

~ The quality of work you’ll produce,
~ The level of happiness you’ll have.
~ The quality of leaders you build

2. Invest at Least 80 Percent of Your “Off” Time into Learning

The world’s most successful people are intense learners. They are hard readers. They know that what they know determines how well they see the world.

Stop consuming junk media.

Read right & build your own content.

3. Don’t Work for Money, Work to Learn. Money is an outcome.

Wealthy & happy people work to learn. Unsuccessful & unhappy people work primarily for money.

Only 20 percent of your energy should be spent doing your actual work. Spend rest on learning, improving self, & resting.

4. Don’t Learn for Fun, Learn to Create Value. Value attracts everyone.

It takes wisdom to determine what you should learn, why you should learn it, and when you should learn it.

Learn, Relearn, Erase, Learn, Relearn. Be dynamic.

Find your own content.

Peter Lynch is a great investment manager of all time. He is famous for introduction of PEG. (P/E growth)

According to Mr. Lynch the faster the company grows, the higher the P/E ratio you should pay for that company

Here is a Thread - Peter Lynch thoughts & my interpretations.

1. Investing is fun, exciting & dangerous if you don’t do any work

Fun becoz we tend to learn so many things

Exciting becoz it give great moments of celebration because of unimaginable wealth

Dangerous becoz it can be addictive due to greed & people may start finding shortcuts

2. You can outperform the experts if you use your edge by investing in companies or industries you already understand.

Study businesses, apply common sense and invest into something which you understand.

No need to adventure & no need to be part of anything or everything.

3. The stock market has come to be dominated by a herd of professional investors. You can beat the market by ignoring the herd.

Stay away from noise & crowd to come out as a winner.

4. Behind every stock is a company. Find out what it’s doing

The underlying entity of a stock is business. Choose to ignore everything else, but never ignore to study business.

Company includes few more things in addition to business like management, etc.

Model Portfolio 3

Time Horizon 3 years or earlier ~ Depends on if the stock performs significantly well in faster time. Review of business performance important every quarter.

This portfolio is suitable for aggressive investors who believe in risk taking and look for growth

Name %allocation

~ Laurus Labs 15%
~ Balaji Amines 15%
~ Deepak Nitrite 15%
~ Kopran 10%
~ Pokarna 10%
~ Eveready 10%
~ Dynpro 10%
~ Manorama 5%
~ Adani Enterprises 5%
~ SHIL 5%

~ Laurus Labs
~ Kopran

My top two picks in pharma sector are Laurus Lab and Kopran.

These have good earnings predictability, growth visibility & significant undervaluation. Growing from small to medium and to big.

Earnings can grow and valuations multiple can grow accordingly.

~ Balaji Amines
~ Deepak Nitrite
~ Dynpro

These three are my top picks in Chemicals.

These have good earnings predictability, growth visibility & significant undervaluation. Growing from small to medium and to big.

Earnings can grow and valuations multiple can grow accordingly

~ Pokarna
~ Eveready
~ SHIL

These three are my top picks in Home Consumption.

These have good earnings predictability, growth visibility & significant undervaluation. Growing from small to medium and to big.

Earnings can grow and valuations multiple can grow accordingly.

Jubilant Bhartia group gonna be one of the biggest group that has all the potential to overtake marketcaps of many other groups.

Listed
~ Jub Foodworks
~ Jub Pharmova
~ Jub Ingrevia
~ Jub Industries

May list in future
~ Jub Enpro
~ Jub Motorworks
~ Jub Consumer

WatchOut !!

Thread - How to spot a potential multibagger

Multiple fundamental parameters however we cannot be rigid on any of these parameters.

Be flexible to interpret things from bigger picture point of view.

Input 1 ~ No doubt on business survival

Come whatever event (health crisis, economic bubbles, economic recessions, political events, etc.), there should not be any doubt on business survival.

Earlier it used to be only food companies into this category, but now there are many.

Input 2 ~ Visible & sustainable growth potential

At any point of time, we can think with a certain common sense approach that if management wants, there can be a sustainable growth at any point of time.

Obviously this growth may come thru innovation, optimization, etc.

Input 3 ~ Management has vision towards growth

Management should be forward looking, should be able to read into future to build right growth avenues, should be considerate towards every stakeholder.

In addition management should be ethical & should have good social image too.

Input 4 ~ Promoter stake>50%

There should be a reasonable skin in the game from promoter.

If in case there is a low promoter stake, then promoter should increase stake at every possible opportunity.

Also pledging should either be zero or minimal.