Year 2005 was when, I was working quite closely with journalists- courtesy a Print Media company. I realised that despite a formal education background in a particular field of knowledge, some of my colleagues could come up with some excellent articles. This prompted me to start expressing what I thought.
Had it not been MBA in finance, I would have been in literature but then I never envisioned myself to be so expressive. All those years (schooling ones) when I could have worked on nurturing this skill, were lost mugging-up history lessons. Without any special effort on my part, I secured myself post graduation in business administration. I opted for finance as specialization in 2nd year. Since then I am known as a finance professional.
So when I am a finance professional as per the voices inside me, I decided to take-up the challenge of writing company analyses from an investment perspective. I smartly aggregated (had I been a Consultant “analyzed”would have been the word) the secondary information on some of the private Indian banks. Some of those banks were Kotak Mahindra Bank, South Indian Bank, Karur Vysya Bank etc.
I was aware of the fact that as per RBI regulations, promoters of new private sector banks will not be allowed to offload their stake within first 5 years of their banks’ incorporation (not very confident if it was 5 years). I could visualize in 2005-06 that these banks, likes of Kotak Mahindra or Yes Bank will be aggressive in their strategy to grow to help their promoters dilute their stakes in next 6-8 years.
Investing in some of these stocks would have been like a ‘Warren Buffet Strategy’, but that did not happen. I always believed- “I still do not earn enough to save and invest.” And today we all know the capital gains that some these private Indian banks have to offer.
Not enough- I share one more missed opportunity.
Tata Motors stock was trading around INR 90 per share in 2000-01. As a case study one our finance professor told us to analyze the company. I still remember what he said- “While the company is incurring losses and attempting an entry into passenger vehicle segment, its a stock to invest given its strong fundamentals.” Stock of Tata Motors today trades at INR 760- annualized return of 27%. Shucks! which business gives you this return at an opportunity risk of 7-8% on your returns.
पाल सोचा मत करो, बस करो- कब होगा यह. काश!
I have not lost yet..I know some more opportunities where to invest. Oh! how can I share them on my blog?