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I Am Not a Trader...But This Unique Strategy Appeals Even to Me

Oct 25, 2017

Rahul Shah, Editor, Smart Contrarian

A few years ago, had you asked me for my views on trading in the stock markets, I would have politely said it's not something that interests me.

But you know, it's nice to pause and reflect on new ideas as you grow and evolve.

I'm a diehard fan and follower of value investing. And always will be. But it's pleasantly surprising when I find yet another strategy for making money in the markets that I believe could be beneficial to investors.

And this is exactly what happened to me when Apurva and I got talking on one of our late afternoon chai runs. He asked me:

Do you think value investing is slowly dying?

Value investing is not dead, but I can see why it might seem that way in the short term.

A few years ago, the markets were ripe with low hanging fruits - be it in the mid, small or large cap space - we were recommending stock after stock. Sometime several in a week.

With the markets buzzing miles above any valuation I would be happy to recommend, most fruits seem unreachable. While strong research and a long-term approach can still help you nail a solid opportunity in the long term, it's not that easy anymore.

And what about someone who is looking at shorter horizon periods...? Someone who cannot afford to buy and forget. What are those of your readers supposed to be doing?

I understand what he is talking about. Across some of our research services, I know of businesses where stock prices haven't moved an inch for months despite solid fundamentals and strong management backing. Much as we remind subscribers to focus on long-term approach, patience is a rare. It has become even more difficult to practice in the current markets. No wonder, then, that a lot of our subscribers have exited early and have not been able to enjoy the market beating returns as suggested by track records.

How Long Must We Wait Before Time Becomes Money

There has got to be some substitute for those investors not willing to wait long.

For me, that answer could never be trading, of course. I have never been one to look at just the stock price movements and place bets, with a blind eye to businesses underlying them.

Apurva knows this and he wouldn't try to convert me. But I could see the wheels turning behind his eyes so I asked him what he was thinking...

I do have something in mind - it could be just the thing... But I need to know what you think...

What he showed me is a strategy that had led to a 17.2% gains on a fundamentally strong company - my kind of company - in just 5 days, when the all the stock offered was a meager 8.4% in a year.

And this was just one example. He showed me many more...

In another case, one could have earned 11.9% returns in 7 days on another strong business when the stock price itself declined over a period of eight months.

Abandoning the rest of my cutting chai, I headed back to the office.

I had my research team run all the numbers again independently. They were right.

Well, turns out Apurva has caught on to something that is, quite possibly, just the ticket.

Here's what really caught my attention, though.

Nothing about this approach was random. It was as rational as I could possibly have wanted. His universe is a set of fundamentally strong companies. He has a process to identify the right stock and the right time to enter and exit. And one does not have to wait for long to get results.

Imagine if you could keep spotting such opportunities one after the other... You could compound your wealth at a high rate.

Value investing is all about being far-sighted. But we do not have to miss out on high returns in the short term. If there's a sweet spot that brings the best of both worlds together, I'm willing to go there.

And I want to take you with me... so stay with me - as I discover the secret of Apurva's genius.

Good investing,


Rahul Shah
Editor, Smart Contrarian

Editor's Note: Some people think about wealth in hours, days, weeks... how much money did I make working 8 hours today? How much time did I spend on that project that made me a few thousand rupees.

But true wealth SHOULD be measured with a more...expansive...time frame... What a decade can do for your wealth, your life, your legacy... the answer lies here.

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2 Responses to "I Am Not a Trader...But This Unique Strategy Appeals Even to Me"

nilesh naik

Oct 25, 2017

boss, pl.give more specific and deep review so that new comer can understand properly and take proper advantage from it.u r doing good for ( amm ) people. thnaks alot

Like (1)

R.HARI RAJU

Oct 25, 2017

Value investing has already gained momentum. How can you term yourself to be a contrarian?

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