8 Investing Mistakes (RED FLAGS) Every Investor Should Avoid
Вставка
- Опубліковано 12 чер 2024
- 👉 Subscribe to my newsletter at shankarnath.com
In this video, we'll explore 8 investing red flags that can help you detect early signs of trouble, making your investments more secure and turning you into an informed, vigilant, and successful investor. The 8 investing mistakes are as follows:
1. Delayed Financial Reporting: This not only impacts investor confidence but also stock prices, as demonstrated by cases like Balaji Amines and Byju's.
2. Excessive Director Remuneration: Section 197 of the Companies Act specifies limits on director and manager remuneration. When companies exceed these limits, as seen with Sun TV Networks and National Peroxide, it's a red flag
3. Auditor Resignations: For example, Deloitte quitting as the auditors for Manpasand Beverages led to a 55% share price drop.
4. Pledged Shares: If the pledged share ratio increases sharply, it raises concerns, as seen with Max Financial Services.
5. Abnormally High Dividend Payout: While high dividends are appealing, an excessively generous payout can signal underlying issues like financial distress, lack of growth opportunities, or earnings manipulation. Vedanta Limited's case is a striking example.
6. Corporate Governance Issues: Gaps in corporate governance, such as insider trading or accounting irregularities, can severely impact a company's stock performance, as shown by cases like Brightcom, Lux Industries, and Aurobindo Pharma.
7. Frequent Fundraising: Frequent capital infusion can be a sign of financial instability, dilution of existing shareholders' stakes, and increased debt levels, as demonstrated by Manpasand Beverages
8. Sudden Increase in Debt: A substantial and sudden increase in a company's long-term borrowing is a major red flag, as seen with cases like Kingfisher Airlines, DLF, Suzlon, Moser Baer and Pantaloon.
👉 Video Chapters:
00:00 Investing Red Flags
00:55 1. Unexplained Delays in Financial Reporting
02:30 2. Excessive Remuneration to Top Management
04:14 3. Unusual Auditor Changes
05:45 4. Frequent Share Pledges
07:32 5. Abnormally High Dividends
09:39 6. Corporate Governance Issues
12:18 7. Frequent Fund Raising
14:32 8. Rapid Accumulation of Debt
15:58 Shankar's Viewpoint
👉 Additional Readings & Resources:
‣ 2point2capital.com/blog/index...
#investingmistakes #redflags #stockmarketmistakes
Disclaimer: I am not a SEBI registered investment advisor or research analyst. I am not registered with PFRDA or IRDA either. The content posted on this platform is purely for educational purposes and none of it constitutes investing or trading advice. Viewers should do their own research and diligence before investing or acting on the information presented. Some of the links I have posted in the video, the description, the comments and other related resources might be affiliate links
Congratulations Shankar sir on your 1L.subs... i am sure you will grow by as multibagger growth. And i love you newsletter through Substrack. ❤
So nice of you. Thank you very much, Ankit for your kind appreciation
Thanks Shankar sir for the wonderful useful video.. highly appreciated..
Most welcome. I'm happy you found it helpful
Thank you very much.
You are most welcome!
Thank you sir
Most welcome
Congrats on the 100k. And I believe you deserve more.
Thank you so much 🙌
Thanks Shankar !
Most welcome
Thanks for great insights as always.
My pleasure! Glad you found them informative
Excellent video as always 👌
Thank you very much 🙌
Thank you for such an insightful video❤
You are so welcome!
thank you sir 🙏.. its worth watching your videos.. excellent research, analysis and presentation..
You are most welcome! I'm glad you like my work
Excellent Saahib ji!
Thanks
Congrats on 100K subs❤ . Much deserved. Been following you since ET days. Love your work 😊
Thank you very much for your kind appreciation and continued support
You are doing a very good job
Thank you very much!
Congratulations Shankar on 100k subscribers...I am sure you will reach 1M as well...Just a query regarding today's video, you mentioned pledged shares being a red flag, but if you see the REITs then most of them have high pledged promoter stakes then should one avoid the REITs altogether?
Thank you very much, Anujoy. I'm not clear on the reason for that with re: REITs. If I get something to this effect, I'll circle back
Very nice presentation❤❤❤
Thanks a lot
Proud of clicking the notification less than a second after it popped up.
Jaldi jaldi me kuch bhi bol deta hu😂
Thank you for the vote of confidence on my work
Congrats Shankar on 100K. Always pleasing to listen to you on market
Thank you very much!
Congratulations on 100k. Road to 1 million is on!
Thank you very much 🙌
Thanks Shankar. I regularly avoid one mistake of not hitting like once the video starts playing... 😊
Great! You deserve a red carpet for that :)
Excellent content as usual Shankar sir. Waiting for your next sector analysis
Thank you
Nice
Thanks
Congratulations for your 100k milestone 🎉, Well deserved 🎉
Thank you so much 😀
Excellent content Shankkar. Im my case i had taken position at vedanta in 2021 and later these developments occurred. Im sitting on a loss but if i equate it considering the dividends received Im net +ve. Should i holdon now or exit?
Congratulations on 100k sir
Thanks a lot 🙌
Thank you sir, Please guide us as to how to identify the good management or promoter of a company.
I'll try .. Thanks for the suggestion
Congrats on the 100K! :)
Thank you!! Much appreciated
🎉congratulations for 100k sub investors
Thank you 🙌
The red flags are the sole reason I invest in mutual funds. But do all the funds carry out these checks ?
Like I always say this channel is a hidden gem
Thanks!
Sir please make a video on index pe investing.
Per month sip is varied like pe falls 5 % ( due to increase in earnings or fall of nifty) we increase investment by 10 %
We can adopt several strategies to gauge this like having a pe range as normal like 18 to 22 and then average fall in pe we increase sip by 5 % and vice versa and several other strategies.
Thanks for the suggestion. There are videos on this very concept on the channel. Please have a look at ua-cam.com/video/jQqj9KqU9IA/v-deo.html and ua-cam.com/video/WT8_9-ll7XU/v-deo.html
Sir, can you make video on companies in which investment value of balance sheet is more than market cap of that company. thanking you in advance.
Thanks for the suggestion
❤
Sir if possible can you make a video on the type of tax harvesting wherein we sell each of our holdings after holding it for over an year and buying it again on the same day so as to save on LTCG taxes over a long term period. This is easy in case of mutual funds because we can sell the units which have been more than a year but not so easy in case of direct stocks as mostly people don't invest in direct stocks via SIPs. So it would be great if you could make this video on how to do this in case of direct stocks
Hi, why do you say it is difficult in stocks? If I bought 100 shares on 1st Jan 2022 and sold on 20th Feb 2023, then it's LTCG and had I sold on 15th Nov 2022, then it's STCG. Maybe I didn't understand your context, can you please detail out the query a bit more?
I think in case of direct stocks when we may have bought 100 shares at different dates then selling and buying at different dates may attract additional taxes when selling as well as buying again. But in mutual funds expense ratio would be same regardless of how many times we buy and sell. Also not all retail investors would buy that much quantity of stocks of 1 company at a time
@@alexstanley4684 Hmm .. I'm sorry, I'm still not getting the context. I have bought many shares in the past and have never faced a problem. Infact, a platform like Zerodha actually tells investors which ones have crossed 1 year of holding. Anyways, sorry for not being of much help here.
@@shankarnath sir no problem at all. You don't need to be sorry as first of all you are not responsible for answering these type of queries but it is so nice of you that you are taking out some time for this. So thank you very much. May be I am unable to ask this in a way in which I should have
I think one more thing that I just remembered is that in case of direct stocks when we sell it after holding for a year and then buy it on the same day there is a possibility we might buy it at a higher price than what we sold it at because of continuous price changes but in case of mutual funds NAV is declared at the end of the day so selling and buying would certainly be at the same price
OMG 💯 k 😱.
🙌
Hi sir,
I'm the first comments.. 😊
Good day.. Before watch full video.. I made this commet and like.. I belive as you did rocks.. 🎉
So nice of you. Thank you very much!
You should increase the salary of your graphic designer coz all the thumbnails on your videos are 🔥.
So nice of you. Please use the "Thanks" button (just below the video frame) to show your appreciation.
Your videos on investing have been very helpful Shankar Bhai ji. Request you to please start making a few videos on trading too
Thank you
Request to make a detailed video on SLPW plan of NPS which I think can be a very good source of regular tax free income
Thanks for the suggestion
I think SLPW is a bad choice because bonds are market linked. It is better to withdraw 60% of your corpus in one go rather than subjecting it to market risks. May be if NPS had a option to invest in fixed income schemes like bank deposits then SLPW would have made sense.
Also 40% of NPS corpus mandatorily to be used to buy an annuity plan which is taxable according to slab. SLPW is applicable only for the remaining 60% corpus, which is already tax free. Hence I don't understand the so-called tax benefits that you pointed out.