Buy process:
1. I use a screener to filter for stocks to buy when the fair value in investing.com has an upside of 25% or above and the overall health score should be greater than 3 in investing.com. I update the watchlist daily.
R1:
Profit growth 5Years >=15 AND
OPM 5Year >=2 AND
The average return on equity 5 years >=15 AND
Market Capitalization >400 AND
Debt to equity <=.3 AND
Price to Earning >=1 AND
Price to Earning <=30 AND
Interest Coverage Ratio >4
R2:
Debt to equity <= .3 AND
Market Capitalization >=400 AND
Price to Earning <=30 AND
Price to Earning >=0 AND
The average return on equity 5 years >=20 AND
Interest Coverage Ratio >= 4 AND
Profit growth 5Years >=10
R3:
Debt to equity <= .3 AND
Market Capitalization >= 400 AND
Price to Earning <=30 AND
The average return on equity 5 years >=15 AND
Dividend yield >=1 AND
Price to book value <= 5 AND
OPM >=1 AND
Interest Coverage Ratio >= 4 AND
The average return on capital employed 5 years> 10 AND
Profit growth 5Years >=10
2. I buy stocks in the below mutual funds when PE is less than 20 and the fair value in investing.com has an upside of 25% or above. I update the watchlist once a month using moneycontrol.com or morningstar.com.
Parag Parikh ELSS Tax Saver Fund
Hdfc small cap fund
Kotak Flexi
Kotak Emerging Equity
Kotak Small
Kotak ELSS Tax Saver
Franklin India ELSS Tax Saver
DSP small cap
Update(14 Aug 24): I am buying stocks where mutual funds (Multi, Flexi, Large, Mid, Small, Dividend, ELSS, Value, Focused except arbitrage) are buying irrespective of PE and the fair value upside is 25%.
3. I buy stocks in the below indices when PE is less than 20 and the fair value in investing.com has an upside of 25% or above. I update the watchlist once a month using moneycontrol.com or morningstar.com.
Nifty Smallcap 250 Quality 50
NIFTY100 QUALITY 30
NIFTY200 QUALITY 30
NIFTY MIDCAP150 QUALITY 50
Update (14 Aug 24): Irrespective of PE I am buying.
4. I use Recession-Resistant and Simple Screener in investing.com to buy stocks when the fair value in investing.com has an upside of 25% or above. I check the screener daily.
5. I also use HDY and ABC screener to buy stocks when the fair value in investing.com has an upside of 25% or above. I update the watchlist daily.
I buy one script daily with the highest upside and 0.5% of cash + invested amount.
I update the value research, google sheet, and watchlist when I buy a stock.
Sell rule:
I will sell the stock as it is overvalued on investing.com. I check daily for overvalued stocks.
I update the value research, google sheet, and own watchlist when I sell a stock.
