“Investing is simple, but not easy.”
– Warren Buffett
Nivesh Niti () is an attempt to impart the right investor mindset.
Most of the financial content on the internet is designed for short-term traders which gives the idea that it is very easy to make money in short term whereas the opposite is true.
It is difficult to predict any stock performance in short term and at the same time it is pretty easy say with greater chances of being right about the long term prospects of a company given that the company is doing something you understand and they have a earning model that you understand.
It is more likely for a company who is doing good for last 10 years to perform well in 11th as well as subsequent years and is actually relatively easy than predicting what it is going to do in next few days.
This process is an inherent part of what is famously known as “Value Investing” pioneered by Benjamin Graham and then by his disciple Warren Buffett.
Value investing is all about Paying the Right price for the company.
Core idea of Value Investing is trying to BUY something only at SALE (50% or more Discount)
Just like in SALE of any kind you need to know the MRP (Maximum Retail Price) to know it’s on how much Discount.
In Nivesh Niti every stock is assigned a value that reflect what should be its MRP (known as Optimum Price) by quantifying various aspects that matters as per Value Investing Principles.
For easier reference they are assigned with the Star Rating which is just an indication of their current level of Discount from Optimum Price.
So, the Current Price of a stock at any day place them to have one of the following levels of Discount from Optimum Price.
Level of Discount Stars
50% or More 5
40% to 50% 4.5
30% to 40% 4
20% to 30% 3.5
10% to 20% 2.5
0% to 10% 2
Current Price >= Optimum Price (NOT at SALE) i.e. 1 Star
Like in any SALE our aim is to get Maximum Value for our Paid Price.
“Price is what you pay for something, but value is what you get.”
OUR AIM IS :
“To Buy Great Businesses at Maximum Discount.”
A value of above Optimum Price just means that it’s NOT yet at SALE so just stay away from it till it’s on SALE (if ever).
That’s the only thing to focus and all the other things will automatically fall into place.
Currently, Nivesh Niti hides all the complexities and just present the most crucial things to impart the right investing mindset.
Nivesh Niti has a small (but growing) set of stocks selected according to Value Investing Principles and User can invest only among those.
The current takeaways from Nivesh Niti are:
- To stay focused on the value of the business and only look at the stock market when you want and too as its Master not as a Servant.
- It helps user imbibe value investing principles which by nature is highly selective approach and isolate user from herd like mentality of the crowd.
- It reinforces that investing is easy, not rigorous and painstaking.
- It NOT necessary to have opinion about all the things in financial markets.
- And above all Patience.
Use it according to the way it’s designed for some time and evaluate if you experience any difference in your outlook towards the investment in the Stock Market.
It’s a Journey not a Destination…there are exciting things ahead……Stay Tuned
It’s for imparting the knowledge to help spread a right mindset to approach the investing and does not suggest any stocks and it should be used as an education tool only.