How to Invest in Stocks the Promoters Are Buying? | Follow the Smart Money | Promoter Holding
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- Опубліковано 12 чер 2024
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In this video, I explore a compelling investment strategy centered around the actions of company promoters. The key premise is that when promoters increase their stake in a company, it signifies the company's perceived value surpassing its current market price. With data, I prove that promoters tend to buy when markets are cheap and refrain from buying during high valuations. My suggestion is for investors to consider this strategy as a portfolio approach rather than focusing on individual stocks but there is enough evidence that by shadowing a promoter's moves, investors can tap into a proven, contrarian approach for long-term success in the market.
👉 Video Chapters:
00:00 Promoter Increasing Stake
01:02 Promoter Shareholding in India
02:50 How Promoters Acquire Additional Shares
04:53 Promoter Buying Depends on Valuations
07:21 Ways of Implementing Promoter Buying Strategy
👉 Additional Resources/Reading:
‣ Talk by Mr. Maran Govindsamy: • Mr.G Maran - Unifi Cap...
‣ Article by Economic Times: economictimes.indiatimes.com/...
‣ Brochure by Unifi Capital: www.unificap.com/sites/defaul...
#promoterbuying #promoterbuystocks #insiderbuying
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
One of the very few youtubers with crystal clear voice speaking in simple english and straight to the point
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hai shankarji, your simple englishp with no decoration and clearcut voice makes me to start fans club!
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Simply superb, with a very lucid explanation. Excellent work Shankar, keep it up.....
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Excellent presentation…. Eye opening for common investors…. Thanks Mr Shankar 🙏🙏
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This was a new topic for me! It was engaging and informative and most importantly backed by studies!! Thank you Mr. Shankar for bringing up this topic!
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Thanks for the insight! Really short and simple😊
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Videos of extraordinary quality and you are improving day by day content-wise also.
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Excellent video❤
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Wow.. You are pure blessing...added one more param in choosing stocks wisely...I have taken your Peter Lynch strategy... intrinsic value and now this
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Sometimes promoters also becomes forced buyers to protect his company from hostile takeover.
What are dew good website to check promiter buying periodically...is screener reliable for this purpose
Love your content and it's helping me to understand many fundamentals ❤I want to understand which sectors are undervalued/fairly valued right now, and best companies to pick from that sectors
Thank you. Glad you like my work
Good strategy sir. I recall Ambanis buying Reliance shares. Retail had ample opportunity to buy RIL and benefit from it
Thanks! Glad you found it useful
Thank you Shankar ji ... Lot of hard work ... Could you pls share content on US Stock Investing from INDIA ?
Most welcome. Sorry, I neither invest directly in US stocks presently nor make any content on the same. For Indian stocks & stock markets, please refer to other videos on this UA-cam channel and subscriber to my newsletter
Excellent video. I try to follow all your video as and when they come out. Thanks for some really good ideas. I've been trying to follow a similar strategy since last few months. Could you please point to some resources which would help to identify such companies?
Thank you 🙌 .. Some resources:
1. Use screening platforms like screener.in
2. Read corporate announcements
3. Read it on news (ET, Mint, Moneycontrol)
The red one is the intelligent investor in the back side i think what is about the yellow book,sir?
Wow
Hi Shankar. You have raised a very good point. Could we have a video replicating this strategy on screener?
Thanks! I tried it on a screener. It wasn't very helpful so I left it out of the video. In my view, a screener should only be used to receive a preliminary guidance and should not decide on the final picks.
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Another interesting learning, from my Personal Finance Guide.
We will be highly benefitted- if you come out with your SMALL CASE portfolio
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Currently, I am more keen on growing my newsletter which can offer readers 9-10 strong investing ideas per month. I think 10 ideas is enough for any investors and what I present now are high conviction bets. The newsletter itself is free right now but even if I charge it in the future, it wont go above ₹400 p.m. I'm certain the newsletter will pay for itself many times over.
Fund management is a more intensive exercise (operations, compliance, fund raising, infrastructure etc.). I have not thought about it. I prefer to do one step at a time -- my chances of success are higher if I do one at a time
Hi Shankar Nath..Hope your health is good now
Yes, its much better. Thx!
Excellent video, Shankar. I am sure there is money to be made with this strategy if done with some diligence.
I have been running an experimental portfolio based on this strategy over the last 2 years. Buy 2-3 stocks (only small caps) which have had significant promoter buying. Sell after a year regardless of what happens and reinvest in another set.
It was a washout in 2022. I had some stocks fall 50% or so. The next year however, some stocks went up 3x.
I found one issue with this strategy. Some promoters buy one quarter, and sell the very next.
There could also be a case where an entity that was earlier a public investor gets classified as a promoter, thereby bumping the promoter holding up.
Given these caveats, this is potentially a very good "follow the money" strategy.
Thanks for sharing. Yes, relying on screener on promoter % can be tricky. It's better to go with a pullout from the annual report and see if those individuals are the ones buying or selling shares. I do this for my set of stocks; not an easy thing to do when starting but eventually one gets the hang of it.
@shankarnath Ji: Appreciate the insight. Could you recommend alternative dependable websites with effective stock screening capabilities? I wasn't initially a fan of screener tools, but after watching your videos and observing how you leverage them to filter and shortlist stocks based on various criteria and queries, I've started using it more frequently. I'd appreciate your guidance on other trustworthy sources.
@@ashishprasadbhardwaj3777 I use screener.in for initial screening, haven't used anything else. I met Ishmohit of SOIC a couple month earlier, he recommends Tijori Finance. Haven't come across any other screening platform yet. I'll circle back if something else meets the eye.
Thanks @@shankarnath Ji, will be waiting.
sir, is there any variation found in dividend declaration part after increasing stake.
Sorry, I have not across any literature or study in this regards
Thanks for an very informative video. I’m definitely going to explore this strategy. Just a quick question. How and where can one track real-time promoter holding changes?
Most welcome. Sorry, I don't know any source where minute-to-minute promoter holding changes are conveyed. Personally, I get to know them from corporate announcements which come in 2-3 trading days of the promoter buying or selling
Hi sir, Thanks for the video., please clarify on what is the source of money when the promotor buys the shares., is it from company reserves or from his/her own money., pls advise
It's the promoter's own capital
👍🏻
Sir, I am a subscriber to your newsletter and love your insights. You insight on TCS single share buyback strategy was very helpful. What are your opinions on Bajaj Auto buyback sir? Will Bajaj auto accept single share buyback as TCS did?
Thank you. From what I have read so far, the 1 share buyback trick is applicable here.
Than what is the use of promoter increasing there holding if price goes declining,it is better to understand technical atleast it works with price
Can you rephrase the question? It's not clear, perhaps explain it with an example to get some context
Shankar- Is there a MF or ETF which has this theme as their Investment strategy?
Smallcase Top 10 Insider Trading seems to have a minimum investment of 50L.
Keep up the good work!
Thanks! As mentioned in the video, I couldn't discover a mutual fund that works on this objective. Can you please let me know where you saw the 50 lakh minimum investment limit for this smallcase?
Hi Shankar Ji
Thank you very much 😊
You teach Basics and Fundamentals that's Great
Can you please a detailed Analysis of PSU stocks
Especially
PSU Banks
PSUs
RAILWAYS STOCKS
DEFENCE STOCKS
CAN YOU PLEASE TELL WHICH ARE UNDERVALUED AND OVERVALUED RIGHT NOW
AND WHICH STOCKS HAS LONG TERM GROWTH POTENTIALS
PLEASE DO A COMPLETE FUNDAMENTALS ANALYSIS OF THESE SECTORS
Thanks for the suggestion
Sir can we buy Bajaj auto for buy back profit sir . Can u make a video sir
Thanks for the suggestion
Hi Sir, Please clarify this. Generally we consider High FII holding and Low public Holding as stability. On the other hand, we say that major price actions happen due to FII inflow/outflow. So, isn’t high FII holdings pose a risk of sudden crash of stock. Why high retail holding considered risky instead of high FII holding? For Example - Fivestar Business Finance Ltd.
Apologies, I don't have an answer to this because I never look FII or DII or retail holding in my analysis. The promoter holding has more weightage in my evaluation of stocks.
@@shankarnath Thanks for your reply sir. I appreciate your different approach/perspective but, then how you analyse stocks like HDFC, ICICI, ITC, Infosys, Coforge, etc which have nill or very less promoter holdings.
@@justanythingmeaningful4557 I don't use a single model for all companies/sectors. A different model to used evaluate these stocks you've mentioned
For banking sector like ICICI & HDFC, please watch this video: ua-cam.com/video/mdS4n0R3s0U/v-deo.html
For IT sector stocks like Infosys and Coforge, watch: ua-cam.com/video/YaHdk3z_znM/v-deo.html
@@shankarnath Thanks for your guidance 🙏
how to screen based on promotors?
On a screener (screener.in), there is a variable named "promoter holding"
Please make a video on Debock Industries which is supposed to be a multi-bagger considering its past revenue and profit growth. It is quoting only 10 rupees for a face value of rupees 10.
Thanks for the suggestion
Sometimes promoters can dodge you by showing that they are buying. They know it will take the stock up.
Interesting. Can you share a few examples of where this was done with an intent of deceiving?
How do you track a company promotor stake change in real time?
I don't track on a minute-by-minute basis, I read about it in corporate announcements. As the case is in India - when a promoter engages in trading activity (buy or sell), SEBI regulations require him or her to make some disclosures
@@shankarnath I see thank you for your response.
You give information for free which is hard to get even if you are ready to pay
Thank you.
From where do we know promotors are buying?
Promoters have to declare the buying and selling of their stake via communication to the exchange. You can read those announcements on the BSE website.
where to find such companies ?
Some resources:
1. Use screening platforms like screener.in
2. Read corporate announcements
3. Read it on news (ET, Mint, Moneycontrol)
Please create a screener for this theme and share. Thanks
On a screener (screener.in), please use the variable "Change in promoter holding 3Years" to extract potential companies. So for companies where this value has changed by 10% in three years, please use:
Change in promoter holding 3Years > 10
Personally, I'm not a fan of using screeners to pick stocks. At best a screener can distill from 1000s of companies to 40-50 stocks. Unless, one is aiming to create an index of 40-50 stocks .. I'll suggest each of these companies should be evaluated individually.
How can we track promoter buying from NSE web page?
Sir, I liked, pls give me like too
how to track promoters stake increased in particular share, wo nahi bataya aapne.
Sir we need a detailed discussion on Chinese markets
San Rhea technical textiles is 1 stk where promotors hv increased by 10% in 1 yr
I have analysis shatki pump promoter where from rs +400 now its near 1300 Avonmore captial is another example let see if again in this share .
I want to told 1 thing sir .
If you want to increase the viewership of your video , prefer videos in hindi language because mostly population of India did not understand the English
Thanks for the suggestion
@@anilantonyelenjickal Sorry, I didn't understand. Was I doing something wrong until now? Pls clarify
@@anilantonyelenjickal Oh, ok. Thanks for clarifying.