Among the various rocks turned over by me this year to try emulate Peter Lynch were some offbeat companies which I would never have read about in my usual sources for finding interesting stocks. Stocks like DFM Foods, Thangamayil Jewellery, Indag Rubber, Solar Industries, Carborundum, Tube Investments, Mayur Uniquoters & Setco Auto came from Online blogs, forums, little known investing sites or just my own snooping around quarterly results. I think these stocks along with other smallcap/midcap growth stories gleaned from research reports like Kajaria Ceramics, Dewan Housing, ING Vysya & Kaveri Seeds still have potential to give market beating returns.

Over the course of last 2 years I’ve mostly depended on research reports partly because in 2008-2009 high quality, discovered companies were dirt cheap and also since the 2008 meltdown did make me seek safer stocks. In hindsight that was exactly the wrong thing to do. There were 10-30 baggers available in smallcaps while I sought refuge in the safety of 4-5 baggers in better run midcaps/large caps. As we had entered a bearish patch from start of 2011, I was conscious to avoid getting too pessimistic and trying my best to find the same spirit of independence and curiosity that had led me to the Areva, Ratnamani Metals, Champagne Indage, Havells & Sanghvi Movers of the last bull market.  My investing resume while having no bad eggs only had TTK Prestige & Hawkins as big multibaggers from the 2009-2010 period which exemplifies my misplaced caution.

I suppose the big returns from my pack of growth stocks could only be realised if the market itself reverses and enters a bullish phase again. And that seems to be at least 6-8 months away when rates are cut and inflation cools down a bit. That still leaves me with ample time to keep digging more gems or simply add to these stocks as more conviction builds in. Not bad from a portfolio perspective though I’ll be glad when the slog put in this year gets over…

Advertisements