Fund Manager’s Insights on Multibaggers, Gold and EVs | CA Rachana Ranade

Fund Manager’s Insights on Multibaggers, Gold and EVs | CA Rachana Ranade

You might have come across such advertisements on various social media platforms, please note all of these are fraudsters promising unbelievable returns through stock tips. I don’t provide any calls or advisory services. I provide only educational content through my social media handles and through my website rachanaranade.com and rachanaranade.in. Hey folks CA Rachana Ranade here and I welcome you all to a very different video because today’s video is about a podcast. A video podcast with Mr. Samir Aurora and this entire conversation that I did with him oh my God I must say that it was an amazing conversation all the viewers got to learn so much from this whole conversation who were the viewers? They were my members from my invest in India Community, a community where all people who are like-minded who believe in long-term Investments, who believe that yes we should have a edge over knowledge so that we can improve our investment strategies all those were the viewers of that whole one hour plus interview, but what I have done is that out of that whole discussion I have cut chunks where he has shared his views not only on gold but sectors like EV, QSR and he has addressed a very important point as to how to identify multi-baggers, so it’s going to be a fun conversation but if you want to listen to the whole interview and if you want to be a part of such interviews where industry experts are going to join in every month then please do consider joining our invest in India Community wherein we don’t only conduct just one session like this but the perks other than this are you’ll get a stock of the month wherein I will be discussing One stock from different sectors so the whole intention is to identify companies and understand how to actually analyze companies from different sectors, please note these are not stock tips these are just an opportunity or this is just an opportunity which is presented to you so that you can learn about companies from different sectors what else do you get in this community some I mean one of the most exciting feature of this community is the 21 days challenge. Last month we conducted the 21 days fundamental analysis Challenge and this month those who are going to be the new entrance in this invest in India Community we are going to get this as 21 days fundamental analysis challenge reloaded so those who missed out on the previous month you get to attend that and for those who are already a part of that community and who want to enhance their knowledge we are coming up with a 21 days technical analysis challenge, plus you’re going to have some blogs you will be a part of a WhatsApp group where more than 500 people are there from multiple countries but again don’t get cheated there are some certain fraudsters who will ask you to join certain WhatsApp groups and they’ll give you tips this that that is not my group okay I have a group on which you will join only based on a membership which is available on this link nas.io/investinindia. Now once enrolled the challenge, once you complete the challenge, what is the reward? The biggest reward is a better version of yourself. I’m sure that your knowledge will get leveled up second those who complete this challenge successfully will get a virtual coffee session with me, it’ll be an exclusive Zoom meeting wherein we’ll you know get to learn and we’ll get to discuss about a lot of interesting topics, third and very important Point you’ll also get to learn from your peers okay so it’s going to be an exciting journey if you want to enroll for this we are coming up with special offers for monthly and yearly membership don’t forget to use these coupon codes when you apply for this membership. Now with this discussion let’s get started with the conversation with Mr. Sameer Arora so let’s get started with the questions um first question uh I think let’s start with the latest news uh Elon Musk who was going to come to India uh a lot of news uh were floating that maybe it can be a game changer for the EV sector could companies like Tata get impacted because of that uh so do you think that Tesla can bring in a new wave in the entire EV space in India? I didn’t realize we asking specific stocks but anyway this no no so this is the thing is that people also jump to conclusion very fast these days because this is a bull market so in a bull market if he’s coming to meet the Prime Minister uh and you know therefore X number of months later maybe one year later or two years later you’ll be able to start a physical fact factory there and so people were already anticipating who will be a beneficiary who will not be a so that is a bit too much I would never do like that but obviously the good thing you can take is that the government of India is keen to get in these Marquee guys like they got in apple or Samsung had come on before only but apple is the new big high profile guy so if you get these high profile guys in the beginning they might be only doing assembly but four five s years later they have to at least localize some production uh and that is how the Auto industry in Chennai and all these places got developed but in the beginning it was import only screwdriver whatever we call it so from that angle it was good so I don’t like the Auto industry because just look at it big picture so big picture prior to this transition to EV there were X number of car manufacturers in the world who were making IC cars right the old car then because of uh Society pressures climate environment whatever they said that now you guys over time have to make EV cars or somebody made EV car and others had to follow, so now all these guys have to spend billions of dollars in making new cars but when you make the new cars these will not be additive the old car sales will come down and nobody saying that the overall sale of cars will go up because you’re going to EV, there’ll be natural growth that’s okay there’ll be the normal growth say I don’t know 10% in India let’s say 10% growth. Now you said to everybody spend billions of dollars and make new cars but nobody said that when you make EV cars instead of IC cars the number of sale units will go up nobody said that you will make more money so you had to do this just to remain in business because the whole world is forcing you but there another thing happened!!! There were 50 new guys who were not doing IC cards EV car we are also interested so suddenly new guys like Tesla came in and then in India let’s say JSW came in or wants to come in or god knows many guys wanting to come in who were not there so now you have more more players even the old players have to spend billions and you are restarting the game absolutely absolutely so once in a while one fellow may benefit because his new EV car may be better than his old IC car but collectively they have to lose money it is guaranteed there is not even 1% chance that collectively the industry can make money because for the same volume as before you have spent billions of dollars more and you have brought in brought in means so many new competitors have come in and the sale units are not I mean there’ll be a normal growth but that growth was there even otherwise absolutely so it is a big picture massive money loser collectively for the world I think o very different and a very interesting perspective I must say one one uh asset class which people have been talking a lot about in the recent past is Gold. Gold and with all these geopolitical tensions escalating as per theory we say right it is looked at as like a safe heaven and if we look at the central banks data China is buying a lot uh India is buying a lot I mean whatever we bought in the last year was 80% we have already bought in the first two months itself. I don’t know this but possible so if that be so should retail individual investors also shift some of their portfolio to Gold to just balance shift you know I own I mean I own about 10% of my whole portfolio of gold and I have it even physical like bricks okay like one, one KG so the thing is that gold has gone up for two three reasons one reason is that when this Russia War happened so the US basically froze Russian treasury assets which is basically wrong then either you are the uh what is the word Reserve currency for the world but then whoever has it so when they throws it it was obvious new Russian money, new Chinese money new Iranian money but all these guys will want to buy gold, particularly China forget about others and therefore indirectly anybody who feels here we should not put all our eggs in the US basket absolutely but there was one negative which because I never thought about it but was normally when interest rates are 5% gold is not supposed to go up because 5% you’re getting for the dollar, I would think now don’t buy it okay leave it whatever you have is okay very I have not bought for two three years okay but I’ll keep it it’s okay it’s a good time pass thing uh we’ll see but I don’t think new buying is justified because of this geopolitical. Jumping onto a different sector uh there is one sector which is not performed well in I think last two three years which is QSR space and something uh just to give examples maybe Devyani or Jubilant Food Works. We own west life which has done nothing nothing yeah so uh even when I was trying to read uh their management commentary or even when I went through their annual reports their margins have been squeezing like anything and uh the PE that they were commanding because people are not going there is that is why actually what has happened although we have it we’ve kept it we have it from 2016 but the thing is there is the normal population is tied for money they have no jobs uh this is all rich man’s game. Now I used to think that McDonald is okay because you know uh you go to the mall and it’s no money to spend but you can eat a burger people are not eating Burger also and the second is Zomato. Zomato neutral that people don’t have to go out as much you stay at home and watch your Netflix no parking, no transport, no water, going coming I think everything has changed, true true uh and so they have taken the they are not growing because India is growing they are growing because they’re taking away everybody’s uh the things like Dominoes so Domino’s was the only one which could do home delivery now everybody can do home delivery though that makes a big difference, but this this thing shall recover with time I hope because there is young people consumer consumer all that so I don’t think this is like something which has been disrupted it is okay it’s part of up and down of a consumer cycle. True, true true um we have talked a lot about sectors now if I were to go to an Investor’s mindset because uh a lot of people did start investing since 2020 uh they have not seen uh the down because they entered at the lowest point right so from there they have seen more highs than more lows so what what would be your suggestion for a mindset that a long-term investor must have throughout his investment journey. They have to grow up fantastic because the thing is they have been living in a absolute uh like a dream situation the bottom line is you look at any period the longer period the returns fall to around for the market fall to around 14-15% per annum in rupee terms and all these guys think that you can make 25-30%, they cannot and they will not they can do what they want but problem is when they don’t make we also will not make but that means there has to be a bare market a down market where everybody will be hurt so uh but it will happen in life so only thing is if you know that it will happen that day maybe you’ll be less shocked but yeah this is too dreamy a situation. So I think the mindset that everyone should develop is be realistic correct correct uh a similar uh follow up question is many people feel that there there is something some magic formula maybe through which one person can find out multi Baggers uh people believe that uh there there could be that one stock which they can find that around like five rupees 10 Rupees which can go up to thousand, two thousand so you know by the way just let me tell you so I’ve been here since 1995 but my first fund was a Balance fund the second one was an Equity Fund 96 so from 96 to now if I look at my Equity returns of a fund but two funds Alliance plus Helos uh the NAV in INR terms post management fees is up 500 times about 485 times while the market is up 35 times the point is you can get every multibagger but you will not know in advance that it is a multibagger because the managements also don’t know that it is a multibagger so you will not know it is a multibagger so for example when Steve Jobs died in 2011, his number one holding was what tell me he had he had rejoined uh Apple I think in 97 or something and they had launched the iPod in 2003 or something and the iPhone in 2007 so he knew what was happening at Apple so what was his number one holding he had no apple he had $6 billion dollar of Disney because because he had sold Pixar to Disney, I am sitting in a company that will become $3 trillion and I should sell my Disney whose shares will not go up at all Disney Shares are at some 102 low right now or somewhere around that so when Satya Nadela became CEO of Microsoft that was 2014 and from 2014 to now the stock is up 10 times, it used to be 300 billion now it is 3 trillion and the guy who uh made him the CEO the chairman of that committee was Bill Gates and Bill Gates does not have any reasonable amount of Microsoft he has only some 20 billion of Microsoft out of his net worth of 150 billion why didn’t he know I have hired this great guy correct uh and therefore I should stop selling my Microsoft shares which the other guy never sold the Steve Baber. Well Steve Baber has become as rich as Bill Gates because he didn’t sell his Microsoft in the same company the chairman sold everything well not everything but quite a bit and Steve Baber didn’t sell anything so one guy has become equal to the other story you are not supposed to find one but you buy like we buy 35 companies okay two kinds one we buy the regular companies like HDFC Bank types which is half the portfolio these regular guys who have done well for long and the other half may we are buy 20 companies of 22% each okay by the way HDFC Bank also I own since 1995 and my story came in the book also called bank for the puck and from that day I owned it personally also and the fund has always had it the point is but at that time what was the logic to thinking that HDFC bank is some hero there were five other Banks correct correct there was Global Trust bank has gone to zero there was Centurion Bank not gone to zero but it fell to four rupees or something there was Bank of Punjab fell to zero there was uh times bank which got taken over by HDFC bank but nothing much on its own so how would you know for example we own Kotak. Kotak Bank but Kotak Bank in 2000 was not a bank he was a broker so how why would you think even when they became a bank that a broker is a better Banker then say Global Trust Bank which came with the co being a big Banker Ramesh Gelli so the point is a precise but you eliminate whatever you can and you buy 20-25 companies of two two and half percent each and then you let it be because they also don’t know correct you have to just eliminate that means they are not expensive these stocks are in sectors which are growing, they are not being disrupted they are not in sectors where government policies too much every day they are not too much dependent on ABC there is no bad history that you know there is no bad governance that you know and then you can say one or two things are very good let’s say it’s very cheap or that the the demand of the sector is very good all the eight factors that we use all of them will not be good also at any time but they should not be bad absolutely, well I hope you enjoyed this wonderful conversation with Mr. Sameer Arora. If you want to check out the full version of the interview as I mentioned don’t forget to check out our invest in India Community wherein you can enroll for that with these coupon codes as well so that you get some extra discounts all the links are there in the description box. I hope you enjoyed this one till then take care Jai Hind and bye-bye [Music]

✔️To join the Invest in India community: https://nas.io/investinindia

Apply Discount Code “INDIA25” for monthly membership.
Apply Discount Code “INDIA40” for yearly membership.

✔️Perks of joining the Invest in India Community:
* 1 video podcast per month with an industry expert
* Stock of the Month
* 21 days Fundamental Analysis Challenge – Reloaded
* 21 days Technical Analysis Challenge
* An opportunity to interact with like-minded people across the globe
* 4 insightful blogs per month
————————————————————————————————————–
✔️ Invest in Knowledge: https://link.rachanaranade.com/CourseStore
✔️ All Social Media Handles: https://linktr.ee/RachanaRanade
————————————————————————————————————–
✔️ If you want to create your demat account then please click here for assistance:
https://forms.gle/ddA781mZ4BWzU66J9
————————————————————————————————————–
Secure your life and health
✔️Policy Bazaar:
– Life Insurance► https://bit.ly/3tYenqr
– Health Insurance►https://bit.ly/3ynVssD
✔️Ditto► Book a free consultation call with Ditto Insurance now: https://bit.ly/3xuAcBS
____________________________________________________________________

What is covered?
00:00 – Introduction
03:36 – Impact of EV on Auto Industry
07:59 – Insights on Gold
10:10 – Insights on QSR Space
12:07 – Investor’s Mindset
13:30 – How to Identify Multibaggers
18:37 – Conclusion

#CARachanaRanade #ShareMarket #multibagger