Stocks for the long and short term portfolio

[aj4567]

jamit,
ITC and HUL have benn growing steadily over the years... no great fluctuations...

but their ratios seem to be very high.
ITC for instance,
P/E=34 and P/B=14
P/E*P/B= 476 whereas it needs to be close to 22.5 according to Buffets principles...

is the high ratios common for all fmcg sector stocks... is i still wise to invest in them?

 

[rahulr]

Well-being of Infra stocks depends on the GOI's focus on growth. So, you are right that it will take a while for such sectors to take-off.

Unitech is not as reliable as a few others in the category.

LT is a great stock to have for the long term as it is an awesome brand, diversified business and very good corporate culture. But the sector is beaten down. LT is showing negative cash flows for some quarters now. That is never good.

I have it on my buy list, along with Siemens, but in a different time and at a better rate.

Thanks Amit.

Also read your recent post about waiting for 6 months before investing, so that NIFTY comes to realistic level. I agree with you.

Where should i park my money till then ? FDs are still giving negative real interest rates and also have 1% penalty for premature break. Any liquid fund which can yield around 1% a month with up to 12 months maturity ?

 

[Mr.G]

Thanks Amit.

Also read your recent post about waiting for 6 months before investing, so that NIFTY comes to realistic level. I agree with you.

Where should i park my money till then ? FDs are still giving negative real interest rates and also have 1% penalty for premature break. Any liquid fund which can yield around 1% a month with up to 12 months maturity ?

Liquid money market funds give approx 0.65+% per month.

 

[Einstein]

buying 5900ce

 

[Mr.G]

Your bullish on the market?! I was bearing I'm running around to gather more capital to invest at lower valuations!

 

[jamit_05]

jamit,
ITC and HUL have benn growing steadily over the years... no great fluctuations...

but their ratios seem to be very high.
ITC for instance,
P/E=34 and P/B=14
P/E*P/B= 476 whereas it needs to be close to 22.5 according to Buffets principles...

is the high ratios common for all fmcg sector stocks... is i still wise to invest in them?

Everything is very high right now. It is not the right time to look into ratios. The corporate growth is being revalued to lower levels. Markets will follow.

 

[jamit_05]

buying 5900ce

Good luck with the long. I am long too in NF since 5623.

 

[jamit_05]

Thanks Amit.

Also read your recent post about waiting for 6 months before investing, so that NIFTY comes to realistic level. I agree with you.

Where should i park my money till then ? FDs are still giving negative real interest rates and also have 1% penalty for premature break. Any liquid fund which can yield around 1% a month with up to 12 months maturity ?

Short term and Ultra Short term Debt Funds may me the answer. Look for the most reputed establishments like HDFC or SBI. Avoid being penny wise pound foolish. Very tumultuous times ahead, anything may happen.

Consider putting money partly in Gold. You may land a windfall.

 

[victory]

Hi Amit,

Your buy list - time - price would be very helpful for us to track regularly and park our funds.

Kindly do the needful if you have time

 

[victory]

If investement in stocks takes time - planning to part my fund as per your suggestion above.........

Guess its wise to wait - election next year - chances stocks might fall much deeper.

Ur views Amit - and also on bond and ultra bond would be appreciated

do not know why my PM option is not available - else would have communicated via PM