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    Wealth Creation Through Growth Investing

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    vvpvarun
    This document discusses wealth creation through growth investing. It provides guidance on building a growth portfolio by selecting sector leading companies with scalable business models, high growth rates, and potential for expansion of price-to-earnings ratios. The document recommends evaluating consolidation patterns on weekly charts to time entry into growth stocks and outlines reasons for exiting positions such as earnings disappointments, loss of market share, or identification of a better opportunity.

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    Wealth Creation Through Growth Investing

    Uploaded by

    vvpvarun
    98 views11 pages
    This document discusses wealth creation through growth investing. It provides guidance on building a growth portfolio by selecting sector leading companies with scalable business models, high growth rates, and potential for expansion of price-to-earnings ratios. The document recommends evaluating consolidation patterns on weekly charts to time entry into growth stocks and outlines reasons for exiting positions such as earnings disappointments, loss of market share, or identification of a better opportunity.

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    Growth Investing

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    This document discusses wealth creation through growth investing. It provides guidance on building a growth portfolio by selecting sector leading companies with scalable business models, high growth rates, and potential for expansion of price-to-earnings ratios. The document recommends evaluating consolidation patterns on weekly charts to time entry into growth stocks and outlines reasons for exiting positions such as earnings disappointments, loss of market share, or identification of a better opportunity.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    98 views11 pages

    Wealth Creation Through Growth Investing

    Uploaded by

    vvpvarun
    This document discusses wealth creation through growth investing. It provides guidance on building a growth portfolio by selecting sector leading companies with scalable business models, high growth rates, and potential for expansion of price-to-earnings ratios. The document recommends evaluating consolidation patterns on weekly charts to time entry into growth stocks and outlines reasons for exiting positions such as earnings disappointments, loss of market share, or identification of a better opportunity.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 11

    Wealth Creation through

    Growth Investing
    Presented by,
    Basil Aleyas
    Disclaimer: I am not a sebi registered analyst. Stocks mentioned are only for study Purpose,
    not recommendations. The images and ideas are copied from various books and are
    referenced at the end of the presentation.
    Tracker of a Growth Investor! Basant Mahaswari
    How Growth Investing Creates Wealth?
    Building Growth Portfolio
    How does PE expansion generates Alpha?
    Drivers of PE ratio – 17 reasons from The Thoughtful Investor
    Selecting a stock for Investment
     Sector Leader from a leading Bull market sector.
     Entry barrier of business.
     Less govt./regulator involvement business.
     Secular growth company; not a cyclical business.
     Scalable business preferably with out heavy capital requirement.
     Tax paying company. If possible with some dividend yield.
     Operating cash flow should be at least 80% of net profit.
     Positive free cash flow if not doing capital expenditure.
     Preferable Ratio thresholds: Top Line growth 18%, Bottom Line growth 25%
    (Preferably look to eps growth to avoid share dilution) & ROE 17%.
     PE ratio expansion.
    When to invest in a Growth Stock?
    Look for some consolidation pattern breakouts on weekly charts.
    What to do, if there is unexpected earnings disappointment?
    When to exit a growth stock?
     Earnings disappointment.
     When the company fail to acquire market share.
     Government Regulations adversely affecting the business.
     When a better leading bull market stock is identified.
     When ever you want money.
    References and Further Read
    suggestions….
     How to trade in Stocks. By Jesse Livermore
     The thoughtful investor. By Basant Mahaswari
     Value Investing in Growth Companies. By Rusmin Ang & Victor Chng
     One up on Wall street. By Peter Lynch
     Common stocks and uncommon profits. By Philip Fisher
     Value Migration: How to Think Several Moves Ahead of the Competition
    (Management of Innovation and Change). By Adrian Slywotzky

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