In late 2014, I stumbled across a Company which had a Dividend yield of around 15%.
Sounds too good to be true right? I mean at that price I could’ve borrowed at 11% still made a decent 4% (I hadn’t borrowed then, but the possibility was exciting) . And there was always the possibility of Capital Appreciation. So here I was with a good company, good business and a great Pedigree Group.
I’d earned a fair bit of Dividend over the 4-6 quarters I had kept the stock though the stock had not moved up much. It was in a sort of range. The dividends however had given me enough cushion to keep the stock, though not add more.
Come July 2016, and there was an Income Tax raid (at the Promoters Place, not mine :-P). So there I was contemplating buying Public Sector Banks, because everyone had written them off. And then goes CNBC ” Raid, Raid, Raid at the Promoters Offices across India”, I look at my friend who I knew had the same stock.
Without any thought I go across to a (Stock) Dealer (not the one dispensing illegal stuff) and say “Market kar ke maal bech” (Rough translation: I do not care about the bloody price, just get me out of this.) My friend does the same as well. I messaged my CFO (Dad) “Got rid of STOCK”
I was happy because I had made nearly 50% in Capital Appreciation alone (Completely Tax Free!) and gotten out before the price tanked.
The stock goes down to my buying price too in the aftermath. I am happy because “I got rid of the stock” and smug too because “I am out and What Idiots bought this stock I got rid off ?”
So was I right? Or was I right?
Well I was not right. You see the stock from its bottom went up nearly 15 times. And that could’ve been my first 10 (maybe 15) Bagger.
Do I lose sleep over it? Nope. Do I regret selling it? Nope.
Most of you would’ve gotten the name by now. If not, it is Indiabulls Ventures.
Lesson Learnt (I Hope)
Keep In Touch with Stocks you sold. “I” did not revisit the Thesis and check if I should’ve bought it again after the troubles were over.
P.S: I had told a few people to buy it around the same time I did. And I forgot to tell them to get “rid” of it. Luckily they did not get “rid” of it.
Fund Managing Monk 