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Profit Builder Series #1: India's Best Investors Are Buying These Three Stocks - Private Briefing

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Profit Builder Series #1: India's Best Investors Are Buying These Three Stocks
Apr 5, 2018

Editor's Note: Most people find market volatility a cause for worry. But we believe, dear reader, it's the right time to focus on building your wealth via the best profit-making machine possible. To make sure you are on track to do that, we've created a 3-part Profit-Builder Series. For the next three days, you will receive three different set of stock ideas that you should consider buying. Read on for Part 1...

A few days ago, I asked Kunal Thanvi about his approach to identifying stocks.

I expected a long technical explanation.

I was in for a surprise.

In brief, this is what I learnt...

Broadly, there are two ways you can invest in stocks: a hard way and an easy way.

The hard way is to do it yourself.

Read annual reports. Crunch the numbers. Attend annual general meetings. Question the management. Do your due diligence.

And decide if the stock is trading at a discount to its intrinsic value or not.

A lot of work, no doubt.

But there is an easy way.

You can let the best investors in India do the work for you.

But who are they?

These are investors who will invest only in the best companies.

They don't really care about average companies...and they won't even look at companies with poor fundamentals.

They're India's super investors.

Kunal rightly calls them 'the smart money of the Indian stock market'.

I asked Kunal for details about them.

He said, there are about forty super investors active in the Indian market.

That's a pretty big number...but here's the interesting thing.

Kunal has been studying, tracking, and meeting them for some time now.

I asked him to share his journey.

Here's Kunal...

    When I began this journey, I correctly believed, tracking the smart money would help me with my own stock recommendations.

    But I knew that even the best investors can make mistakes.

    So, I went one step further and developed an 8-point system to separate the wheat from the chaff. I call it the Equitymaster Smart Money Score (ESMS)TM.

    Thus, was born Smart Money Secrets; a monthly stock recommendation service.

    I cherry pick the most lucrative investment ideas from the 'buy lists' of India's top investment gurus.

I asked Kunal, how he goes about picking specific stocks. This is what he said...

    I use these three indicators to keep a close watch on them.

    • Their shareholding percentages (and any changes to those numbers) across 100-150 companies.
    • Bulk and block deals
    • Changes in promoter holding

    But I don't stop there...

    I then filter down the list using the ESMSTM.

    The ESMSTM rates stocks based their fundamentals and the potential to become multibaggers in the long run.

    Its dual role is to screen out potentially fraudulent stocks and objectively evaluate stock picks of the super investors.

    What is left behind is a literally, the best of the lot.

I wanted to know his top picks.

It was a surprisingly short list... Just three stocks.

Kunal discovered, these three stocks correspond to three mega themes.

And he's found a lot of interest among India's super investors in them.

Here's more...

  • Stock 1 - Rural Economy (Super Investor - Kenneth Andrade)

    This super investor believes that one of the biggest beneficiaries of government spending has been the rural economy.

    Kunal recently looked at his portfolio. Most of the stocks he owns are based on this theme.

  • Stock 2 - Real Estate (Super Investor - Multiple Mutual Fund Managers)

    The real-estate sector in India is going through a multi-year consolidation...helped by four events that happened recently - RERA, Demonetisation, the Union Budget, and GST.

    The smart money is upbeat about this sector. They believe the recent events have shaken the sector to its core...and will help make it more transparent.

    This will unlock multiple stock-picking opportunities.

  • Stock 3 - Manufacturing (Super Investor - Sumeet Nagar)

    India is not a manufacturing power house. But that doesn't mean there aren't opportunities.

    The combination of low interest rates, increasing capacity utilisation, improving balance sheets, has created an interesting proposition.

    This is a stock of a niche company providing what is known as Fast Moving Industrial Goods (FMIG) to the manufacturing industry.

So, there you have it...the top 3 stocks vetted by the super investors of India!

The good news is that Kunal has put together a special report about these three stocks...along with his views about them.

If you're a subscriber to Kunal's Smart Money Secrets, just click here to access the report.

But if you are not, I am going to show you a way to claim this report.

And not just this report...but every single recommendation made by Kunal in his Smart Money Secrets newsletter.

Virtually for FREE for life. Yes, today I am writing to you about a very special offer.

It's special because its rare.

This offer is NOT available on an ongoing basis. In fact, we almost never do this.

To cut a long story short...we're basically giving away our research (including Smart Money Secrets)...virtually free for life.

Yes, that's right!

If you act now, you can get lifetime access to 4 of our best services, the best of Equitymaster...virtually for FREE!

Like I said, we almost never do this.

But you must hurry. There's only a short time to get the best of Equitymaster.

This offer will end at midnight on Saturday, 7 April. So Act Now!

Warm regards,
Rahul Goel and Sarit Panackal

PS: Think of all the gains you could make and the losses you could avoid...simply by having access to the RIGHT information at the RIGHT time. Well, now you can. If you act now, you could get lifetime access to 4 of Equitymaster's best services...virtually for FREE! Click here to learn more.

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