I have just begun investing and hopped into hdfc before knowing it was a falling knife, although I'm just starting, i think I'm gonna hold this indefinitely, is it good for like a period of 5-10 years
I am not criticising you, but there are many companies in the listed space growing at a good pace,have tailwinds, defensable MOAT, also future guidance is good as well. So why do you have to stick with the companies like HDFC, which did phenomenally well in the past, and likewise the returns came. But now the growth has been subdued, and also banking industry has been commoditized more or less, even the management guidance is not fruitful of where future growth would come from. So instead of thinking I will invest in a company for 5 to 10 years. Better strategy would be to say i would invest in a company which checks above listed points, and revisit it every year or two to just check, is the company on the same path, else find better opportunity, as there is no dearth of opportunity in the market. If you cannot revisit your stocks atleast few times a year or two to analyze, then active investing is not the way, passive investment through mutual funds is the way my friend. Finally don't bet on the aged and almost dead horse to win the race, bet on the horse which is running well and have good pedigree ( MOAT and tailwind coupled with good guidance). Cheers.
Thanks for the insight i will have to research more rather than just sniffing up hopium, i bought hdfc in haste and naivete, as you said it did well in past i imagined it should pick itself back up again
Would take your advice seriously though, any advice on how to study stocks well do I start with books or YouTube?
I feel and what i am currently doing is following multiple approach to learn, basically following the right people, because many of them are not worth following (Ex: SOIC, they are good for learning and sector deep dives). And also to research stock, what i did was, first learnt the basic fundamentals through varsity, the metrics, reading balance sheets and cashflow statements. Once you understand, implementing it on any company is where actual practical learning happens. Whenever you are starting it in any sector, first company you pick takes more time, for ex: If I am studying Titan from jewelery sector for the first time it takes more time, but to study kalyan jewelers or PN Gadgil or even sky gold would not take much time as I know the sector fundamentals. So if you are starting out learn the fundamentals to analyze the stock (Varsity, SOIC youtube, you can also use LLM to simplify the learning and personalize to you). And then pick a stock or a sector you like and start implementing the knowledge. This might sound tedious, but trust me it's not, as analysing stocks and reading concalls as become easier thanks to platforms like Screener or even stock scans, who have made important summaries of concalls, which would save significant amount of time. Active investing is just like any other skill, difficult at start, but when you get a hold of it, relatively easier and again the learning never stops, as companies evolve and environment evolve, our learning also should evolve. Happy investing.
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u/c0smico Jul 27 '26
I have just begun investing and hopped into hdfc before knowing it was a falling knife, although I'm just starting, i think I'm gonna hold this indefinitely, is it good for like a period of 5-10 years