Annualised (includes dividend)
Since 25th April 2014
Focus: Small caps and / or low-priced stocksKnow More
Annualised (includes dividend)
Since January 2012
Focus: More mid-caps, some large caps
You can use Moneylife stockletters in two ways:
1. Only as an information source: You can use the stockletters simply as source of information. In that case, you would treat this as a list of quality stocks shortlisted by us, which may merit further research and analysis and then possibly could be chosen for investments. Remember, we are not recommending that you buy these stocks. We are merely using our screening system to offer you a shortlist of stocks. If you wish to act on this shortlist, please consult an investment adviser who would guide you about the appropriateness of these stocks, in conjunction with your risk profile and suitability of stocks as an investment product. These stockletters as information source is for those who understand the rewards and risks of investing in stocks for the long run and use the list for doing their own research with their own time and resources. It would not be possible for subscribers to do their research through us.
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2. As Investment Recommendations: You can also use the stockletters as investment recommendations. If you wish to do so, you would be using us as investment adviser. This would involve subscribing to MAS premium membership.
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What is the approach behind the stocks selected?
What we generally look for are these 3 features:
1. Growth: A higher sales and profit in 4 out of last 6 quarters
2. Value: market cap/ cash flow. It shows how the market is valuing the case flows. Lower the better.
3. Return: Cash flow / capital employed. Its shows how much cash the invested capital is making. Higher the better.
This DOES NOT MEAN that stocks that meet these criteria WILL go up. It also DOES NOT MEAN that other stocks which do not share these criteria WILL NOT go up.
It's a game of probability where we try to get the odds in our favour.
Having shortlisted stocks on this basis, we then apply our knowledge of managements, including corporate governance. We don't suggest a short-selling opportunity. Our understanding of the management quality and integrity comes from a careful study of financials. For instance, we avoid companies with debt or those that are not earning high returns on capital or paying low taxes. We do not meet the management of companies that we shortlist. The research team is headed by Mr Debashis Basu.
How do we know when to delete a stock from the stocks?
Deletions from the shortlist are spelt out clearly as and when they occur.
Will I get one new stock name every week?
No. There is a difference between stocks and vegetables. Vegetables are good when they are fresh. Not stocks. The best stocks have been around for a very long time like Nestle or Hindustan Lever or Asian Paints.
How are these stocks different from the stocks given in Moneylife magazine?
Moneylife magazine does not offer shortlist of high quality stocks. It discusses general prospects of particular stocks / industry.
How long should one stay invest for best results?
An equity portfolio must be held for the long term, which we define as at least 5-7 years, depending on the stock valuations at the start of your investing period. However, this does not mean we will hold the same stocks for 5-7 years. The performance of the shortlisted stocks should be judged on the basis of the overall portfolio over 5 years at least, not on the basis of short-term price movement of individual stocks.
How many stocks are changed every year from the list?
We hope to change only 3-4 stocks every year. Additions are made as and when any stock meets our investment criteria. Our stocks come under review after the quarterly and yearly results are declared. At that stage we need to evaluate whether the stocks are still worth keeping in the list. Also, in very rare cases, we may shortlist a stock expecting a trigger; we have to get rid of it if the event does not happen.
Equity markets are dynamic and there are no guarantees. Losses are a part of equity investing. The returns you make will depend on:
1. Which stocks you pick up for investment
2. When you start the research and investing process
Different subscribers will get different results depending on these two factors. Also, anyone investing when the market is expensive will have to be patient about returns. After you buy a stock, it may fall. No one can take into account the timing for every individual and ensure that every stock in the list remain in the black. The shortlist should be judged by the performance over the long term and not by the short-term returns of specific names that you may choose to follow at a particular time.
What is the reason behind the strong historical performance of the shortlist and will it continue?
The reason behind this performance is partly favourable investment climate. Future returns will be lower.
How much should one invest in each stock?
You should invest equal amount in every single stock whatever your final shortlist may be. For instance, if we have selected 30 stocks, and you wish to invest Rs150,000 in all, you must invest Rs5,000 in each stock. To put it differently, if you are investing Rs 5000 per stock and TCS is valued at 2500, you would buy 2 shares. If Asian Paints is valued at Rs 500, you would buy 10 shares. The key point is exposure per stock is Rs5000, not the number of shares. We have facilitated the process by creating SIP tools for the purpose. This can also be used for one-time investment.
Antelope Lion Panther
How should a new subscriber interpret the names given in the stockletter?
We identify stocks from the existing list that are still worth it. New subscribers can research these. We also identify the stocks that are not worth from the existing list because of fundamental or valuation reasons. New subscribers can ignore these. New subscribers can also invest in new stocks added to the list.
Some stocks have already run up sharply. What should one do?
Stocks may go down any time after your purchase, whether they have run up or not. That is the nature of stocks. This is why it is important to follow these two principles about stock investing 1. Investing only that money you will not need for 5 years 2. Not looking at the share price in the short term.
How will I know that the stocks in the shortlist are appropriate for me?
In such situation, we advice you to take the MAS premier membership so that we can advise you.
How risky are the stocks in the stockletters?
Stocks by nature are risky and volatile over the short-term and can lead to losses. But loss of capital in good quality stocks is not just a function of stock selection but also how long a stock is held and at what valuation they are bought.
What if the market is too expensive when I start subscribing to the stockletter?
High quality stocks decline along with the market only in severe bear markets. In normal market declines of 10-20%, many high quality stocks do not decline. They may fall a bit, move sideways and go up again. We shortlist high quality stocks available at reasonable valuation.
What else should I know about risk?
You should know the risks investors create for themselves. "Human nature" is inimical to smart investing. Studies in evolutionary biology have shown that our brain is hardwired for survival but not dealing with complex issues like risk and return. You may like to watch this video to set your mind right once for all and this about buying stocks
How do subscribers get the stockletter?
You can access your stockletter from your MAS dashboard by logging in with your registered email id and password https://advisor.moneylife.in/profile.html#downloads
What is the frequency?
You will receive your chosen stockletter every Saturday evening.
How much do the stockletters cost?
Annual Price of ANY ONE (Panther OR Lion OR Antelope) Rs. 3450
Annual Combo Price of ANY TWO ( from Panther, Lion , Antelope) Rs. 5520
Special Annual Price of ALL THREE ( Panther, Lion , Antelope) Rs. 8280
Can I share the stockletter?
The stockletters are meant for a single user and is backed by years of research. Hence, we urge you not to share them.
What if I have any queries about specific stocks?
You should then avail of the MAS premium membership and ask your question in the handholding section.
The stockletters are for informational purposes only and none of the stock information, data and company information presented constitutes a legally binding recommendation or a solicitation of any offer to buy or sell any securities. Information presented is general information that does not take into account your individual circumstances, financial situation, or needs, nor does it present a personalised recommendation to you. Individual stocks presented may not be suitable for you. Moneylife Advisory Services P Ltd is a registered investment advisor. SEBI registration No: INA000003429
Cancel within two issues: You can cancel your subscription within two issues. We will return your money after deducting Rs150 on each stockletter for payment gateway and handling charges. You can cancel by email or phone.