Saturday, May 13, 2017

Stocks Worth Keeping Forever

Boy and Girl in embrace-portray-forever

Actual Question:

Which Indian stocks would you keep in your portfolio forever, starting from April 2017?


Dear Friend

A very interesting and valuable question.

My guru, Warren Buffett repeats again and again that buying stocks is like buying the entire business. You don’t start and sell your own business with every movement in the price of the stock on the stock market. He also says that if a stock is not worth keeping for the lifetime, it should not have been bought in the first place.

Now let us address your question.

All the stocks listed in my academic portfolio, ‘Portfolio 2K15’ , except NTPC and SBI, are very good and worth keeping. Kindly note that for the past two years since starting this portfolio in February 2015, I have not sold a single share. However, my real darlings are:
  1. NMDC Ltd.
  2. Hindustan Zinc Ltd.
  3. SJVN Ltd.
  4. Rural Electrification Corporation (REC) Ltd.
  5. Power Finance Corporation (PFC) Ltd.
  6. Great Eastern Shipping Co. Ltd.
Logos of six companies who's stocks are worth keeping forever

I think I will keep these stocks forever, unless something fundamentally alters the situation like change in ownership/ management, M&A , etc.

In conclusion every stock in which we have made an investment should be worth keeping forever, but out of the 15 odd stocks of our Portfolio 2K15, six are certainly my darlings and they are worth keeping forever.

Thank you,

With Best Regards,


What are the Best Media Stocks to Invest?

Movie Camera and Reporters Hands with Mikes

Actual Question:

Which is best the media stock for long-term wealth creation?


Dear Friend!

Even though I look with an open and positive mind, I am unable to identify a single investible listed media company. Either the company performance is prima facie not suitable or where the performance on the face looks all right, the valuations are unaffordable.

As a consequence, I do not find none of the listed media companies are worth investigating in depth. So I have not done an in-depth investigation of the listed, media companies discussed here.

Table Showing Relative Media Companies' Performance

Those companies that are not in loss have the PE Ratio far above the permitted below 15 (Zee Media, UFO Moviez and Balaji Teelefilms).

To conclude immediately no listed media company is attractive for investment. Zee Media, UFO Moviez and Balaji Teelefilms look like potentially worth investigating further and in case they have been performing well consistently well, then perhaps they could be considered for investment, when the markets correct.

Thank you,

With Best Regards