This is a Crime Scene. Hire a Sherlock Holmes Before You Buy - Chart Of The Day 29 June 2018 - Equitymaster

Sign up for Equitymaster's free daily newsletter, The 5 Minute WrapUp and get access to our latest Multibagger guide (2019 Edition) on picking money-making stocks.

This is an entirely free service. No payments are to be made.

Download Now Subscribe to our free daily e-letter, The 5 Minute WrapUp and get this complimentary report.
We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks


Login Failure
(Please do not use this option on a public machine)
  Sign Up | Forgot Password?  

This is a Crime Scene. Hire a Sherlock Holmes Before You Buy
Jun 29, 2018

Apart from Mohnish Pabrai, super investor Anil Kumar Goel holds arounds 5.2% in the company.

KRBL is already a multi-bagger for Anil Goel. And he has, over the years, increased his stake in the company.

In fact, KRBL has created a lot of wealth for both big and small investors.

However, in the light of recent events, the stock has corrected more than 40% from its peak.

The big question-Is the recent correction a good opportunity to consider buying?

After all, it's a strong business and one of the largest basmati rice companies in the world.

Well, being a Sherlock Holmes fan, I treat situations like this as a crime scene.

And when Sherlock, comes across situations like this, he is sceptical about everything and doesn't fall prey to any obvious mistakes.

I mean, a great business with multi-year growth story available at 40-50% discount to its peak. Should you think of buying?

Many may argue this fall is temporary and the stock will rise again. This might be true.

However, I as editor of Smart Money Secrets, I would rather try to behave like Sherlock.

Well, the first thing I did was check the background of the auditors of KRBL.

I am glad I did.

It turns out, the auditors are allegedly involved in financial shenanigans and manipulating books of accounts by the Central Bureau of Investigation (CBI).

So for now, I will dig some more and stay away from KRBL.

But if I find evidence which makes it a good investment, I may recommend it.

Data Source: Ace Equity, BSE India

This Chart Of The Day was published in The 5 Minute WrapUp - 2 Reasons Why I Didn't Recommend KRBL After Mohnish Pabrai Invested in It

Equitymaster requests your view! Post a comment on "This is a Crime Scene. Hire a Sherlock Holmes Before You Buy". Click here!


Our Most Popular Charts

Get the Indian Stock Market's
Most Profitable Ideas

How To Beat Sensex Guide 2019
Get our special report, How to Beat Sensex Nearly 3X Now!
We will never sell or rent your email id.
Please read our Terms