SMIC Report 2018: Investment Dairy - Team Shaktimaan

“You must thoroughly analyse a company, and the soundness of its underlying businesses, before you buy its stock; you must deliberately protect yourself against serious losses; you must aspire to “adequate,” not extraordinary, performance.” Benjamin Graham Team Shaktimaan was guided by our philosophy of generating capital growth by investing in a diversified portfolio of fundamentally strong companies and taking positions using technical indicators. The team was given a corpus of INR 1, 25, 000 to invest in common equity for a horizon of 3 months (starting 2nd week of December – 1st week of March). Trading in derivatives, commodities, currencies, foreign exchange was prohibited. The basic goal of the course was investment and not speculative trading. We believed in systematic investment and hence liquidated our stocks either when they reached their estimated target prices or when they reached their stop loss levels. There was no churning in the portfolio throughout the duration of the course, we held the assets till final week. The biggest learning for the team can be summarized in just one quote of Warren Buffett “Only buy something that you’d be perfectly happy to hold if the market shut down for 10 years.”