Pick your stocks from shopping list
Tip in a Cart
The next decade is about picking multi-bagger stocks from shopping lists
By Monika Halan @ Outlook Money
The aircraft, says the pilot, is oh-three-nine in the queue. We’re hovering above Mumbai in a gridlock. Restaurant Big Chill in Delhi has an average non-peak period wait time of an hour, add another hour for peak times. Go anytime of the day and Reliance Fresh, Big Bazaar and Subhiksha are all teeming with people, specially at the check-out. Traffic jams, jammed phone lines, path labs overflowing with people holding punctured arms and sorry looks, parking lots spilling cars on the roads. Just the pangs of sizzling growth.
The lines of shoppers translate into sales. Sales into profits. And profits into
winning stocks
Does the logjam in urban mass affluent India irritate you as a consumer? Look at the gridlock from the eyes of an investor and the whole mood changes from irritation to euphoria. The lines translate into sales. Sales into profits. And profits into multi-bagger stocks. Smart investors, who looked not at broker-driven stock tips on TV, where most of the steam is already out of a stock by the time it comes on the radar of the retail investor, but at their shopping experiences, have done extremely well. What if you had invested in Pantaloon, the same as your monthly shopping bill of, say, Rs 6,000 in 2002 at Big Bazaar? Today, at Rs 6.5 lakh, this investment can fund the next nine years of grocery buying. I asked our in-house ace stock picker Rajesh Kumar to do the numbers for me. He went home early that day muttering “sar ghoom gaya” because he invested a notional Rs 1 lakh in the Excel sheet and found it is worth over Rs 1 crore today. He could not handle not having picked something that was such a sitting duck!
Another great stock that was ripe for picking came in your monthly cellphone bill. If you used Airtel’s mobile and landline services and were happy with it, did you check out the stock? By 2002, it was fairly clear that Airtel was going to be a dominant player using innovative means to maintain service levels. If you had bought into the Airtel story, your Rs 1 lakh invested in 2002 would be worth Rs 5.6 lakh today. Smart investors are beginning to cotton on. No wonder that the recent issues of retail-linked companies have been sold out many times over. The ICICI Bank follow-on-offer, in fact, sold out in minutes. Clearly, the next 10-15 years belong to investors who use the contents of their shopping carts as stock tips.
It’s ok if you missed out on the Pantaloon and Airtel stories. This is just the beginning. This style of investing—popularised by Peter Lynch, the legendary American stock picker—is now becoming possible in India. Ten years back we did not have the products, the companies or the consumers to make retail-linked stock picks possible. Even today, most of what is available is fully discounted. But every market has stocks that are under the radar of the big fund houses. That’s where you can pick them up. And as we enter our 10th year, look out for our fortnightly stock picks through the year.
The story has just begun.
The next decade is about picking multi-bagger stocks from shopping lists
By Monika Halan @ Outlook Money
The aircraft, says the pilot, is oh-three-nine in the queue. We’re hovering above Mumbai in a gridlock. Restaurant Big Chill in Delhi has an average non-peak period wait time of an hour, add another hour for peak times. Go anytime of the day and Reliance Fresh, Big Bazaar and Subhiksha are all teeming with people, specially at the check-out. Traffic jams, jammed phone lines, path labs overflowing with people holding punctured arms and sorry looks, parking lots spilling cars on the roads. Just the pangs of sizzling growth.
The lines of shoppers translate into sales. Sales into profits. And profits into
winning stocks
Does the logjam in urban mass affluent India irritate you as a consumer? Look at the gridlock from the eyes of an investor and the whole mood changes from irritation to euphoria. The lines translate into sales. Sales into profits. And profits into multi-bagger stocks. Smart investors, who looked not at broker-driven stock tips on TV, where most of the steam is already out of a stock by the time it comes on the radar of the retail investor, but at their shopping experiences, have done extremely well. What if you had invested in Pantaloon, the same as your monthly shopping bill of, say, Rs 6,000 in 2002 at Big Bazaar? Today, at Rs 6.5 lakh, this investment can fund the next nine years of grocery buying. I asked our in-house ace stock picker Rajesh Kumar to do the numbers for me. He went home early that day muttering “sar ghoom gaya” because he invested a notional Rs 1 lakh in the Excel sheet and found it is worth over Rs 1 crore today. He could not handle not having picked something that was such a sitting duck!
Another great stock that was ripe for picking came in your monthly cellphone bill. If you used Airtel’s mobile and landline services and were happy with it, did you check out the stock? By 2002, it was fairly clear that Airtel was going to be a dominant player using innovative means to maintain service levels. If you had bought into the Airtel story, your Rs 1 lakh invested in 2002 would be worth Rs 5.6 lakh today. Smart investors are beginning to cotton on. No wonder that the recent issues of retail-linked companies have been sold out many times over. The ICICI Bank follow-on-offer, in fact, sold out in minutes. Clearly, the next 10-15 years belong to investors who use the contents of their shopping carts as stock tips.
It’s ok if you missed out on the Pantaloon and Airtel stories. This is just the beginning. This style of investing—popularised by Peter Lynch, the legendary American stock picker—is now becoming possible in India. Ten years back we did not have the products, the companies or the consumers to make retail-linked stock picks possible. Even today, most of what is available is fully discounted. But every market has stocks that are under the radar of the big fund houses. That’s where you can pick them up. And as we enter our 10th year, look out for our fortnightly stock picks through the year.
The story has just begun.
posted by Kishore at 12:07 AM
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