Aditya Joshi
Aditya Joshi
@Aditya_joshi12
Jul 23 4 months ago 11 tweets Read on X
AI Summary

A smart investor shared tips from a successful trader who made over 30 Crores with 70% CAGR. Focus on small and microcaps for big gains, look for companies with hockey stick growth in the 300-3000 Cr range, and invest in cash-rich firms. Equal investment in multiple stocks, especially those with preferential allotments, can boost your chances. Stay informed with real-time updates.

I met a GENIUS investor who has made >30 Crores in the stock market and has a CAGR > 70%

Here are his key learnings so you can replicate his performance as well

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1. Smallcaps and Microcaps are Kings

Biggest wealth is created by investing in small caps and microcaps.

You have to find small companies with excellent promoters and managements which can become supremely big in the future.

Microcap investing is higher risk if you get it wrong but much higher reward for those who study and do information driven investing

2. Hockey Stick Growth

Contrary to popular belief, the biggest multibaggers originate from 300-3000 Cr market cap range instead of <300 Cr range

The companies which have achieved a market cap of 300 Cr have demonstrated a strong product market fit for their business and some of them can experience hockey stick growth.

Our job, as investors, is to find this hockey stick growth and invest in the companies which will witness this hockey stick growth

3. Cash is King

Invest in companies which are cash rich either through IPO or through preferential equity allotment

If you compare between 2 companies which are equal in everything except cash, the one with higher cash wins because they can use the cash to grow the business.

Hence, go gor companies which have cash in their bank accounts through IPO/ preferential

List of companies which have done preferential:

4. High PE can be good

A randomly selected high PE stock can be super risky but a high PE stock with a huge order book can be a great buy. In fact, this high PE can be a validation that order book is genuine.

In case of high PE stocks, always try and estimate the forward PE. If this is possible, great and take a decision accordingly

If this is not possible, you can skip as you have no estimate of forward PE

List of companies with large order books/ revenue guidance:

5. Equal Allocation is powerful

No person on earth can say with certainty that this stock will be a multibagger.

The more intelligent thing to do is buy 20 stocks or 20 lottery tickets with EXACT equal allocation after in depth study and hope some of them become multibaggers.

Equal allocation improves your chances of success and helps you sleep better

6. Buying 20 preferential equity allotment stocks with exact equal allocation can be a POWERFUL strategy

If you only have preferential equity allotment stocks in your portfolio, then your portfolio companies are super cash rich and poised for growth.

This equal allocation preferential equity allotment is perhaps the best started ever created

List of companies which have done preferential equity allotment:

3 Lac invested in turned into 30 Lac rupees in 1.5 years

This is the power of multibagger investing

A great place to spot potential multibaggers and build wealth is

shares high quality information about small caps and microcaps such as:

1. Capacity expansions
2. ⁠Large Orders
3. ⁠Excellent Results
4. ⁠JV/Acquistions
5. ⁠HNI Buying
6. ⁠Promoter Buying

One can try FREE for 30 Days

Real Time Portfolio Stock Updates for YOUR PORTFOLIO STOCKS FREE

You can use the Sovrenn Pulse feature and get real time updates on your portfolio stocks. This is absolutely free of charge and will help you stay informed.

Link:

Some twitter handles which are doing exceptional work in helping investors and helping them find multibaggers through data driven investing:











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