Nifty is at the Top of the Hill… But Am I a Psycho to BUY Multibagger Stocks at the PEAK?

See I know Nifty is at the peak and at a time HIGH. In such a peak, I’ve added 8 stocks.

I feel these 8 stocks will be multi-baggers for me! In fact TANLA jumped from 826 to 950 in just 4 days!
MUST READ: The Basics of Stock Market for Beginners Book

 

Why Did I Add 8 Stocks to My Multibagger Portfolio?

It took me a whopping 2 months of analysis and a whopping huge wait to figure out these stocks.

All the stocks have been picked with keen observation following the Coffee Can Portfolio method.

Usually, I buy the stocks when I exit some big positions.

Now I had big exits from 5 stocks. Some were underperforming and some were peaked out without the potential to move further.

In just 1 I covered the loss and others I sold at meager profits. Not huge.

So after multiple exits and since the market is at the top, I had some in my watchlist!

I waited waited for the stocks to fall and pick it at the pull-downs! I know I can wait without FOMO.

Freak… Mentioning about FOMO, I too sometimes fall for the FOMO and sold DIAMINES and GOA CARBON at the highs, whereas both are out of my portfolio with just 20 – 30% returns. Now both are getting taller in price daily!
MUST READ: The Basics of Stock Market for Beginners Book

 

Which are the Stocks that I’ve picked for my Multibagger Stock portfolio?

1. Tanla Platforms
2. Goa Carbon – Already Exited
3. Coromandel
4. Can Fin Holmes
5. Indiamart Intermesh
6. Advani Hotels
7. Syschem
8. Natco Pharma
9. Diamines & Chem – Already Exited
10. Narayana Hrudayalaya

You may check out my multibagger stock portfolio for the prices I bought it at.

If some don’t show up there, I’ve not picked the full amount of shares at my prices on the watchlist!

Yeah… I do a lotta research about picking stocks on a pullback. Yeah, some slip my analysis and slip more downer like Atul Ltd. which I thought is a multibagger but turned out to be a Thusss Pataki!

I now remember the famous saying by Warren Buffett.

Be Greedy when others are Fearful and Be Fearful when others are Greedy! – Wah Wah So gooood.

MUST READ: The Basics of Stock Market for Beginners Book

 

What the targets for those Multibagger Stocks Bought?

See I buy something after a heck lotta research and after it rises a lot and pulls back.

This is because, a stock that has the potential to rise and pullback, will again be bought.

Many may ask, why not pick up in the 1st run-up at all?

Well simple answer is, I don’t know if the stock will really go higher!

Such a great stock like Page Industries has not even doubled in the last 6 years!

So midcap companies are the best to buy for any budget below 3 crores and a time span of 5 years!

OK… Coming to the point…

All the stocks I buy are for the long term and some I feel I can’t keep up with the temptation of not selling!

Some stocks do go really higher in a very short span. In such cases, there will be a sharp correction due to huge buying.

So some stocks, I tend to exit very early at meager profits of 15 – 40%.

Such are the stocks Diamines, Goa Carbon and Advani Hotels. I’ll again wait for a huge pull back before I buy again. 

I ‘m not a person ready to take 15 – 20% profits in a day and sit calm!

Many of my nerves may burst with excitement or the feeling of when will it fall and how much will it fall!

See stocks cannot keep on pumping up and up.

If you know gravity, what goes up has to come down!

Hence the stocks too, that go up, should come down.

In some cases like SKM Egg products, it went up continuously by 5% upper circuits for 3 – 4 days and one day it burst up 20% upper circuit!

Such are the days I can’t resist to sell some of my holdings! I was already on 35% profits in a matter of 1 week!

So I sold half of the stakes in SKMEGGPRODs.

Well… I still haven’t come to the exact point of how much returns will I expect from the chosen stocks.

I would say, a minimum of 100% in 2 years.

Yeah I know, I pick so many stocks because of diversification.

But not for diversification against the fall. But some for the diversification against the heavy rise and heavy pumpups!

Though all the stocks I pick have valuations of 100 crores and above, may not be pumped and dumped.

But such are the stocks which move really high very fast due to institutions picking it up.

If stock hits 20% upper circuit in a day, next day it may either be restricted or may fall heavily.

Such fall is unrestricted, because institutions pick such high stakes so they can sell more heavier holdings in such companies!

Ahhh.. This is the modern pump and dump by institutions!

When the stock goes up by 5% and has 20% upper circuit limit, retail investors fall into the stocks like flocks of sheep.

Such buying frenzy is driven by a sell off by institutions!

Then after 10% fall, many stop losses get triggered for a steep fall.

So many stocks are a diversification against such upper circuits.

Having said that I see a return of 1x to 2x in 2 – 5 years on the new stocks I’ve bought.

MUST READ: The Basics of Stock Market for Beginners Book

 

New Multibagger Stock Picks Conclusion:

What the heck was I thinking of buying a stock worth 63 or a stock worth 2600?

• Multibagger stocks are not picked by the trading price. Its picked by its market cap.
• See a stock is worth 62 and has 1 lakh shares in the market and 1 lakh with promoters and owners, it means it has the potential to go really higher because there are a lotta shares the promoters hold which can be diluted later.
• The same with 2600 with just 20K shares in the market and 30K with promoters, can’t infuse much to the market and hence stock is at the peak of its potential.
• Having said that all stocks currently in my portfolio have double multibagger capabilities.
• I have a strong portfolio with diversification against multiple industries.
• This means when a sector falls, diversification will give strength.
• All in all my stocks have all the signs of giving multibagger returns before 2 years too, having been in the bull market.
• Also, I am considering investing in some rail stocks. I’ve some stocks on my watchlist, but no investments yet.

DISCLAIMER: See my portfolio is not financial advice and should not be considered as investment advice.

Start stock market investing and pick your Next Multibagger Now. Also, you may trade with my system and strategy and comment if it really worked for you or not!
MUST READ: The Basics of Stock Market for Beginners Book

 

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