Failed Stocks

Company

Buy Price

Buy Date

Sell Price

Sell Date

Buy Reason

Capital First

320

Dec 2014

700

July 2019

Success in Bajaj Finance made me invest here

Repco Home

650

July 2015

147

Aug 2020

Bought at 30 PE thinking that there is huge growth

Repro India

400

Mar 2017

Hold.

Thought that this can disrupt the existing businesses in print

LT Foods

82

Dec 2017

25

Jan 2020

Tried to make quick money trading the stock

Rain Industries

240

May 2018

180

Nov 2018

Tried to make quick money trading the stock

Jagran Prakashan

140

July 2018

115

Dec 2018

Tried to make quick money trading the stock

ENIL

400

July 2014

530

Feb 2019

Bought this because media companies are operating leverage businesses

Everest Industries

450

Apr 2019

220

Nov 2020

Bought because of low PE of 10

Care Ratings

990

Dec 2018

350

Nov 2020

Ratings business is cash flow business and the stock came down due to investigations 

Learnings:
  • In finance business high valuations are given to only few companies. Rest of the companies command moderate valuations.
  • Buying high growth companies at high valuations can be risky. The growth can fall or market fancy for those growth stocks can come down.
  • Some companies look like they are going to disrupt the existing models. There is no need to buy such companies immediately. Just keep tracking position and once the company starts delivering in terms of earnings then go for them. Otherwise there is too much of opportunity cost.
  • Trading in stocks should be avoided. If you are long term investor then don't try short term just because you have some spare money.
  • Buying another company just to recover lost money in some stock is dangerous. Except that money is lost and move on.
  • Get out early from the businesses which have threat of getting disrupted.
  • Company in trouble need to be bought with a lot of caution. Bad things can keep coming and stock can fall a lot lower than we thought.
  • Cyclical businesses should be bought when earnings are low.

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