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How My Shoe Buying Craze Helped Me Recommend These 5 Stocks

Sep 20, 2019

Radhika Pandit, Research Analyst

Ever heard of Imelda Marcos?

She was married to Ferdinand Marcos. He was the President of Philippines for 21 years (December 1965 to February 1986). They became notorious for all the wrong reasons.

It was widely believed they illegally amassed a personal fortune worth billions. What's more, it seems a bulk of this has still not been recovered.

Now corrupt Presidents running countries is not something we haven't heard of. There are enough examples in the past should you choose to dig out information.

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What caught my fancy is something else. You see Imelda Marcos was a compulsive shopper.

And she was obsessed with shoes.

They fled the country during the uprising of 1986. She is said to have left behind at least 1,220 pairs of luxury shoes. I won't be surprised if every pair was unique.

I love shopping for shoes too. I am often reminded of Marcos' vast shoe collection when I enter a shoe store.

But, I don't have that kind of collection nor do I aspire to. Besides, my buying habits are quite different.

I buy shoes for two reasons only - pleasing designs and comfort.

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In fact, if I find that a type of shoe is working well for me, I end up buying more of the same type when it wears out.

Sometimes, I take it a step further and buy 2-3 pairs of the same model in one shot. So I don't have to worry even if they are no longer available on the market later.

The idea here is pretty simple: If something is of good quality and is working well, it makes sense to buy more of the same, rather than trying out something else.

I can't help but think that a similar logic applies to investing too.

If you have high-quality stocks in your portfolio, it is a good strategy to buy more of these stocks when they're cheap.

Sarvajeet and I have observed some super investors do the same.

I wrote too you about how super investor Rajeev Thakkar, of PPFAS Mutual Fund, is increasing the fund's allocation to stocks.

Here's what I wrote:

  • If you look at the factsheet of his fund, you will see that, in February 2019, the fund was around 22% in cash. Over these months, the cash levels have reduced. So in the latest factsheet of July 2019, the fund is around 15% in cash.

And in August 2019, the cash exposure has reduced further to around 12.6%.

However, he is mostly buying more of the same stocks in the portfolio.

Sarvajeet and I have been doing something similar for Smart Money Secrets subscribers. As the markets fell, we recommended an increase in exposure to stocks recommended earlier. These are companies with healthy business models and a good management at the helm.

The market correction made the valuations of these stocks compelling. We pounced on the opportunity to increase exposure in 5 stocks from 50% to 100%.

Sarvajeet and I believe the market today is providing a great opportunity to buy stocks.

We don't recommend staying on the sidelines out of fear.

Warm regards,

Radhika Pandit
Radhika Pandit
Co-editor and Research Analyst, Smart Money Secrets

PS: Yesterday, Rahul Shah published his second Automatic Income training video for those looking to double their income. You can access the video here.

PPS: Sarvajeet and I have published a premium report on our top 5 stock recommendations. If you haven't subscribed to Smart Money Secrets yet...you can do so here.

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