Getting Started with Value Investing in India

Now you might be hearing, long term investment in stock market will yield huge returns and common examples we get heard off is Warren Buffet, who followed investment philosophies of Benjamin Graham to create wealth from stock market.

 India is also not far behind in value investing, where Late.Parag Parikh is regarded as Hardcore Value Investor, through his Parag Parikh Financial Advisory Services, used run portfolio management services  on value investment principles. PPFAS basic investment philosophy is based on the "Law of Farm". You cannot sow something today and reap tomorrow. A seed has to go through different seasons, before it turns into a fully grown tree and starts bearing fruit.

All will agree value investment had to wait very very long time and boring. People may want to follow the value style of investing but then miss out on the waiting part—which incidentally is the most difficult. You can learn all the right things and invest, but it will be futile unless you have a long-term view.

Most important and base principle you need to follow is identifying and investing in good business which has sound management team. After you cross this, then you can apply principles of investment gurus such as Benjamin Graham, Warren Buffett, Joel Greenblatt, and Mohnish Pabrai.

Each gurus have different ways to find the stock that create wealth over long time, all talk about finding intrinsic value of stock using different methods and formulas like  Discount cash flow.

Parag Parikh provides four parameters of a good business as below, which is base principle in any value investing:

1) Businesses run by credible management. One of the biggest challenges in India is that you are going to be a minority shareholder so you must invest with a credible management who really treats its minority shareholders well.
2) Businesses which I would be able to understand and which are simple to understand.
3) Businesses which have strong moats around it.
4) Pricing power.

For those who want to be part of value investing of Parag Parikh, here is the opportunity to begin by investing open ended PPFAS Mutual Fund, which invest in stocks across the India and USA.

Most of the Indian investor are rely on the tips or advisory services given by some stock brokers such as Motilal Oswal, Choksey, Prabhu Lilladhar etc. But now people have started following investment gurus portfolios, most famous one is Rakesh Jhunjhunwala.

Other popular Indian value investment gurus are Porinju Veliyath of Equity Intelligence and Prof. Sanjay Bakshi of Value Quest Capital.

Porinju is one of the most experienced fund managers in India, he has an enviable track record of out-performing the stock markets. A practitioner of value investing-based stock picking strategies for the past two decades, a stock picker par excellence.

Sanjay is an experienced and successful value investor/advisor and is also one of India’s best-recognized finance professors who teaches at Management Development Institute, Gurgaon. As a practitioner of value investing in India for more than 21 years, Sanjay has an excellent long-term track record.

Now Indian value investors can follow, learn and invest in value stocks by reading the value investment blogs and websites.

rakesh-jhunjhunwala.in  - Fan Site: Inspired, Not Endorsed, By Rakesh Jhunjhunwala

safalniveshak.com  - Wit, Wisdom, Value Investing

kiraninvestsandlearns.wordpress.com  - Price is Everything. Price changes Everything