One may watch the video and gain a lot of understanding of various strategies - but the key point is about the man himself - SHANKAR NATH - how consistent - how amazing - how down to earth - such clarity - THE BOSS - THE GOAT !
Which is a better Strategy Trending Value or PEG ratio? , I Have been watching your videos for s long time , it would be very much helpful. @shankarnath
Hello Shankar, It's time you start your own smallcases or some similar options based on various strategies, it is becoming very difficult to explore all the investment strategies with limited money and more importantly limited time in our hands. I am afraid that I would definetily not be able to rebalance my portfolio at this rate, I hope you consider this suggestion.
Thank you Akshay ji. Starting a smallcase sounds easy, but my understanding is -- it isn't. Foremost is a SEBI registration is required which puts the person availing it into a web of regulations, audits, reportings, filings, advertising limitations etc. I am hoping someone capable works on making a SEBI license not something to fear. This might sound casual to an outsider but as someone who reads & talks to dozens of others in this field, it's something one should carefully think of before availing. Anyways, I am on the job. If an opening comes, I will go for it but like I do with my capital and content, I will look twice before I leap.
@@shankarnathsir I agree with what akshay says. I also feel the same sir. For example, for the trending value strategy discussed in the video, Suppose we are allotting 1,00,000 for the strategy, I'm not sure it would be easy to equally allot the money, since some stocks may be costlier than the allotment amount which means that the ratios won't be maintained. (Fractional investing would have solved the problem😅) Also rebalancing would be a hassle.
Thank you. Pls comment if you really like some video -- a little encouragement goes a long way in motivating creators to do better. I'll request you to comment more on the younger creators (i.e. subscriber base of less than 20,000) -- they're the ones that need it more
Thanks a lot. Valuation score of selected companies in the range of 14-18 may be due to their momentum over last six months. Without momentum, valuation score might have been less than 10 making them even more value-oriented but lacking momentum. Loved the Mario in between. Made me nostalgic :)
Hi Shankar, great video. Your ideas are practical and very useful for the small investor. I've got a paid version of screener. Will this work on it or I have to also get the paid version of tickertape?
Thanks sir! actually i have just one thing to say sir if you can please explain how to read and understand all three financial statements balance sheet,cash flow and income statement to analyse companies
Thank you very much for this kind gratuity and appreciation. I'll try to create such a video per your suggestion -- personally, I don't use a balancesheet, cashflow & income statement based analysis to identify companies. A large part of my thought process is available in my newsletter stories, hope you have taken a look at that.
One Suggestion Shankar Sir.. if this strategy is well backtested, can you pleasecome up with smallcase as it would need quarterly o semi annual rebalancing?
But smallcases can only be managed by SEBI registered advisors right? But Shankar how much ever stock market knowledge he possesses, is sadly not a SEBI registered advisor
Thank you for introducing me to the Trending Value strategy. My past reliance on just intuition for stock selection has led to mixed results, so this video has come at just the right time and motivated me to be more methodical when it comes to stock investing and to establish a Trending Value sub-portfolio. Also, your presentation was well-structured and delivered with clarity. I've subscribed!
Thanks Shankar...I tried this, and followed the steps to get relevant stocks - used Ticker Tape for the same. But got confused with their data on 6 Month return. For one of the stocks that they showed as having highest return (Sukhjit Starch and Chemicals - 6 Month Return of 138), but in reality saw 6 months return as just around 20% (from around 230 to 280 as on Dec 21). And there is no momentum score for this stock. So I guess this is some data or calculation problem. And I wonder how momentum score is calculated, and why a stock does not have the score, esp if there has been movement?
Hello. Sukhjit Starch and Chemicals went through a stock split in October (old FV was 10 rupees, now 5). That might have disturbed the coding at Tickertape. As I always say -- a "screener" is most efficient when it's used to screen. It's not an efficient "picker" and this is where one recognition of issues, opportunities etc. comes in. Even in the case of trending value, I would have left out a few stocks in my Nov 2023 list due to some red/orange flags such as corporate governance, excessive debt, delisting rumours, rating downgrade, sector maturity etc.
@@shankarnath I had writtent to them about this wrong data for Sukhjit Stardch, and they have accepted and opened a ticket. Let us see when they come back.
My one question here is - does this work at any point in time and doesn’t take into regard the overall sentiments of the market prevalent at that time?
The study done by Capital Mind and Mr. O'Shaughnessy was on a calendar year basis. So there wasn't any element of market condition while constructing this
I was just reading your substack and your video pop-up 😂. One question that is puzzling these days what's the sequence of order to go for while picking stock. Since we have so many strategy I am unable to understand how to pick best strategy. 1. Technical analysis 2. Fundamental analysis 3. Sector analysis 4. Valuations 5. Business analysis 6. Govt policies 7. International events like China dumping something... Since I started with fundamental analysis and found few stocks but they're not moving and few stocks I avoided as their fundamentals are not good but they're making new highs 😂. Sometimes I am puzzled what's wrong. I am still at basic levels and learning is going on.
That's good timing 🙌 .. I might release the next issue of the newsletter today evening or tomorrow afternoon. I had taken a week's break but now I'm back with it. With re: the strategy, pick the one that appeals to you most. For example - I like the GARP strategy & I also like 2/3 year revenue visibility companies (which I generally do in my newsletter). You have to see what's more appealing to you .. my preferences might not be yours & vice-versa. Hope this helps.
If you give an option to subscribe on WhatsApp along with email, the subscribers to the newsletter would absolutely balloon. This small thing was certainly a friction point in my case. Thank you for all the value you provide.
Appreciate your kind appreciation, Srikanth 🙌 And thank you for the suggestion. I also had that thought of using Whatsapp community but I don't know how to go about it. Do you know anyone who's doing it -- maybe a growth manager who can guide me?
Hello. The updations will be done in the paid community I'm starting in a month or two. There I'll update not only this trending value strategy stocks but also other investment strategies like GARP, Peter Lynch, Loser's portfolio, Magic Formula etc.
@@shankarnath : Just a simple thought/question. Most of these companies are small and mid cap as pointed by you and have already given a pretty decent return. Some of these have given more than 100% returns in the L6M. Isn’t that an alarming point? Basically for how long a stock can keep running?
@@ravipandey8198 I don't know. But investing requires a rational understanding of fear and optimism. One cant be euphoric at all times and one can't be always petrified. Personally, I use numbers first and then emotions. Let's take your example -- say, company X has gone up in price by 100%. But what if it's EPS has gone up by 150% during the same time. If one looks at only the price side, then he/she will be alarmed. Give the same scenario to someone like me, I'll say something good has fallen into my lap esp. if the company can replicate that EPS growth. I'll put all my energies in finding evidence of that.
Amazing video!! New to channel..great explanation given for all metrics. My question , can we use the same excel and add new stock with filtration method suggested going forward as well. Do we have the formulas included in Excel which gets updated once we add new companies to the list
Welcome aboard! The excel sheet is static, nothing gets updated automatically. You can download the sheet and modify it per your needs though. As I've given the entire process, feel free to do this exercise every quarter or bi-annually -- it'll take 1.5-2 hours every time.
Essentially you have filtered out the top 10% as per your 6 valuation metrics, then ranked them as per the as per the momentum observed in these set of stocks ; Am I right ? @@shankarnath
Can someone help regarding blank dividend yield values. What score to provide in case of blank dividend yield values? will it be 10 or something else? Thanks in advance
Is there a SMART BETA index correlating to this? That is TREND (MOMENTUM) PLUS VALUE? A curious question - how come TRENDING-VALUE-25 is populated with Small & Micro Caps? Because the MOM50 or MOM30 indexes have a few large and midcaps - does it mean when Value filter is applied they drop off?
1. Technically yes -- its a multi-variate factor using value and momentum. 2. More small & microcaps as that's what has been "trending" more than large caps
Hi Shankar, Have a question regarding calculation of the rank and decile score, For some ratio's there are empty or invalid values. For EG: PE ratio might have 0 or negative values. Do you strictly avoid these values in the calculation of decile score? Eg: If we have a total set of 1840 entries and if there are 1000 valid entries, is the decile score calculated in multiples of 100 or 184? - Because for dividend yield I found only 931 valid entries and if calculated incorrectly, the decile rank might wrongly change from rank A -> B based on the set chosen I understand that any entries cannot be deleted from individual sets if invalid since we need sort by name of the company to slot each financial ratio together.
Hello. I had explained this part in the video -- pls see the part where I had the slide on assumptions. You can also check from the worksheet on my handling of blanks and negative entries
@@shankarnath Thanks for the reply, I still found some grey areas after watching the video and wanted to double confirm that the NEGATIVE values are considered in computing the rank and decile rank, but EMPTY values are not. For eg: Considering dividend yield, if there are total of 100 entries and if we have 20 empty entries, then the decile score will be calculated in divisibles of 8 (Considering there is data for 80 entries only). Is my understanding correct?
Can you tell what weightage have you given to the composit score and the returns given by the stock over the last 6 months? Basically, what i haven't understood is how you have arrived at the top 25 stocks?
1. Equal weighting (as mentioned in video) 2. Please watch the video again for a better understanding. The process is explained there + do examine the worksheet
Hello Sir ! I've been watching your videos for a long time. They are pretty good , give a new order of thiniking . I'm greatful . Just one ques --- 1) Do you update the list of 25 stocks in the excel sheet on periodic basis ? 2) Can we go through that sheet and update our stock holdings according to your updation ?
Thank you. I'm glad you like my work 1. Yes, this was explained in the video. 6 month rebalancing is ideal 2. I am not going to update this list in the worksheet. I'm instead going to take this into a paid community (plan to start one in 3-4 months) which will have not just this strategy but updations of the other 10-12 strategies I have talked about like shameless cloner, magic formula, losers portfolio, monopolies etc. I anyways need a platform to communicate any changes because it's not possible using YT community, newsletter etc. I think a paid community is a better solution where I can have a community manager to take care of things plus I can have a couple more researchers to ensure there is strong value coming through. Please give me until January for giving a more concrete picture on this. Thanks!
Will we be able to do monthly SIP in Value momentum strategy? Or add funds during 6th month rebalancing? Also have you made it part of your satelite group of investment?
During rebalancing the portfolio, should i bring the weightage of all stocks back to equal or should i just sell the stocks that have fallen out of top 25 and buy the new ones from the money made by selling the old ones? Please help with adding more details about the rebalancing too
Kindly refer to Mr. O'Shaughnessy's book for rebalancing specificity. Personally, I would have simply sold and bought i.e. I wouldn't have not brought the weightages to parity at every rebalancing stage
@@shankarnath In the book, it is mentioned multiple times that the portfolio is equi-weighted. So i think, we need to balance the complete portfolio i.e. sell some of the old ones too if there weightage has increased in the portfolio
Can u please tell when to sell at the same time for how many months should I recheck Means should I shuffle my 25 stocks every month if they are not present in my list should I sell them
Hello Shankar. I was wondering about this strategy from the perspective of someone looking to rebalance every 6 months. Does that mean that one should do the calculations on a certain month, invest an amount, and then not invest any more until 6 months later, when this is rebalanced? Or every month for 6 months, at which time this should be rebalanced?
Hello. Yes, that's correct. You review once every 6 months. If you start reviewing it everyday, then stock list will change everyday as the stock price & therefore the mcap will change everyday. It's important to give the system some time to breathe and work in one's favour.
Hi Shankar, There are couple of thing I want to understand from the sheet:- 1. The very first tab is November'23 list, does that list have stock selections from previous year. 2. Deep Energy in the list is not listed so can we take 26th company which is Kothari Products 3. How frequently will you update the sheet.
@@shankarnath Update on the strategy. Current return on basket of stock (if bought one share each on 6th Oct) is -10.21%. It seems this strategy has higher beta wrt Nifty 50. Am I missing something here?
@@19922009shivansh Curious to know -- why buy 1 share each? I ask so because assuming there was Vodafone & MRF on this list, then you'd invest a total of 1,20,010 rupees i.e. 10 rupees on Voda & 1.2 lakhs on MRF. You'll never get this analysis right that way
Thank you for the video. One question. Is it right to say that decile score for dividends should be other way round. I mean the higher the dividend lesser the decile score and lowest dividend comes in 10th decile?
@@shankarnath Oh my bad I was referring to Earning Yield and not divided yield. I think we are good. Thanks for your quick response. 🙏 Joel Greenblatt uses earning yield for his "magic formula".
Most welcome. It's impossible to make a screener query for this as numbers have to be pulled out, deciles have to be created, a multi-variate analysis needs to be done .. a screener can't manage all this which is why I started with tickertape and then moved to an excel sheet. May I request you to watch the process again in the video, thanks!
Hi. In your worksheet for stocks whose data is -ve or not available you have updated as 10 decile and these stocks have made into the Final List (25 stocks, Oct 2024). Nandan Denim Ltd for example. Pls confirm if this is ok.
superb video once again. i just have one doubt how did you combine momentum scores and value scores on excell. like what was the process so i can do it on my own.
Thanks! It's exactly the way I explained in the video. I took the top decile of combined scores (190 entries), I then found the 6M return of each of these 190 and did a descending order sort to pick the top 25
Can you make a detailed video on when to sell your holding....what are the criteria we need to look for to decide its the time to sell this holding...it will be really helpful.
Sir, the worksheet that you shared doesn't contain the full formula so that we could use it for our stock selection. If you could share the actual worksheet with it calculation formulas then it will of a great use. Thank you
Shankar - I will look forward to your updates on the list quarterly/semi-annually in the newsletter. Doing some more experiments & automation on top of what you have, will post back.
Hi Shankar! I have watched a few of your videos and I really appreciate the clarity and simplicity with which you explain really complex topics. I like your sense of humour too 😃 You're definitely the best financial influencer that I have come across, and I have grown to trust what you say - so much so that when there's something new I want to learn about, I find myself looking (with hope) through your videos to see if you have covered that topic :) Thank you for all the hard work!🙇♂🙌 A specific question - I guess the deciles need to be ordered the other way for Dividend Yield (since higher the Dividend Yield the better)? So the highest Dividend Yield ends up in Decile 1 and the lowest in Decile 10?
Thank you very much for your kind appreciation. I'm glad you like my work 🙌 and find it useful On dividend yield -- yes, higher the yield, higher up the decile order it is. So highest dividend yield = decile 1
Sir, you are the best finance creator out there. Exceptional analysis. I have watched your Insurance valuation video during LIC IPO at least 10 times. Was working today at Value of New Business and multipliers. God bless you.
I created small case out of this strategy, can i go with lumpsum and then SIP ? How should i rebalance ? Should i exit the performing stocks and re invest after following the steps again ? While rebalancing whats the lowest stocks that i need to replace? Or add above 25 ?
Same. Considering this a part of satellite portfolio, I have limited the amount of investment thus going for lumpsum only. Planning to invest only the amount which I can afford to loose. As advised in the video I plan to perform the same exercise on 6 monthly basis, Retain original stocks if they make the list, sell rest and add new stocks if they make top 25. Hope Shankar sirji takes notice and replies.
Its a game changer. But just a question how do you allocate decile to all the 1800+ companies from 1 -10. Is there any excel shortcut to do it. Or you go through all the 1800+ companies one by one.
Shankar Ji, Amazing Video !! you definitely deserve more followers than lot of other influencers who are misguiding investors with wrong techniques and information.
Seriously, this is the most structured planned and simply put - Brilliant video on such a complicated topic. I've taken down notes and I personally plan to invest, preferably through making a custom smallcase and will rebalance on quarterly basis. Shankar Sir, your newsletters and such gold content is much appreciated. Just one question - Would quarterly rebalancing would be the correct approach or half yearly would be better. Thank you for sharing your knowledge.
@@shankarnathsir also rebalancing, should we sell the stocks if they have grown and exceeded the ratio that we were supposed to allot, even when they belong to the new list ? Need a little bit more clarity on the rebalancing part. Should we get rid of stocks they were removed from the new list irrespective of them bearing profits/ losses overall ?
One may watch the video and gain a lot of understanding of various strategies - but the key point is about the man himself - SHANKAR NATH - how consistent - how amazing - how down to earth - such clarity - THE BOSS - THE GOAT !
Thank you very much 🙌
@@shankarnath, If viewers buy these stocks in buldk tommarow, stocks will rally ( if market is favorable ) 🤔
sir please make video in hindi
@@hardikrathod4324sir please make video in hindi
Which is a better Strategy Trending Value or PEG ratio? , I Have been watching your videos for s long time , it would be very much helpful. @shankarnath
Hello Shankar,
It's time you start your own smallcases or some similar options based on various strategies, it is becoming very difficult to explore all the investment strategies with limited money and more importantly limited time in our hands. I am afraid that I would definetily not be able to rebalance my portfolio at this rate, I hope you consider this suggestion.
Thank you Akshay ji.
Starting a smallcase sounds easy, but my understanding is -- it isn't. Foremost is a SEBI registration is required which puts the person availing it into a web of regulations, audits, reportings, filings, advertising limitations etc. I am hoping someone capable works on making a SEBI license not something to fear. This might sound casual to an outsider but as someone who reads & talks to dozens of others in this field, it's something one should carefully think of before availing.
Anyways, I am on the job. If an opening comes, I will go for it but like I do with my capital and content, I will look twice before I leap.
@@shankarnath Thanks for giving clarification on challenges in creating smallcases, hopefully you will be able to create it some day.
@@akshayvengal4628 :)
@@shankarnathsir I agree with what akshay says.
I also feel the same sir.
For example, for the trending value strategy discussed in the video,
Suppose we are allotting 1,00,000 for the strategy, I'm not sure it would be easy to equally allot the money, since some stocks may be costlier than the allotment amount which means that the ratios won't be maintained. (Fractional investing would have solved the problem😅)
Also rebalancing would be a hassle.
@@shankarnath Hi, can you advise on any current smallcase following this strategy.. it would be helpful. Thanks
Thanks, u a few of those people who are helping democratise stock picking strategies. So many strategies that can be used by small investors also.👍🏽
Most welcome 🙌 .. I'm glad you like my work
I rarely commnet on YT but shankar ji u are just amazing. The only financial influencer i follow and like to watch.
Thank you. Pls comment if you really like some video -- a little encouragement goes a long way in motivating creators to do better. I'll request you to comment more on the younger creators (i.e. subscriber base of less than 20,000) -- they're the ones that need it more
@@shankarnathGr8 Thought... Appreciate
Thanks a lot.
Valuation score of selected companies in the range of 14-18 may be due to their momentum over last six months. Without momentum, valuation score might have been less than 10 making them even more value-oriented but lacking momentum.
Loved the Mario in between. Made me nostalgic :)
Most welcome
Too good. Have been following you since your ET money days. Your explanation skills are amazing
Awesome, thank you! 🙌
@@shankarnath I joined ETMoney after watching your videos only. So you deserve all the credit.
Thanks. Very informative.
Thank you Ajinkya for your kind appreciation. I am glad you liked this video and the strategy!
Hi Shankar, great video. Your ideas are practical and very useful for the small investor. I've got a paid version of screener. Will this work on it or I have to also get the paid version of tickertape?
This is a gold mine. You make it easy to understand and quite analytical vs other shallow click baity TH-camrs
Thank you. I'm happy you like my work
Wow! Can't imagine the amount of work that must've gone into this. Fantastic video Shankar 👏🏻
Thank you 🙌 .. yes, it was one of the tougher ones! Even while editing, I did 14 different screen recordings. I'm glad it came out well though :)
That has to be some kind of a record @@shankarnath 😅
Thanks sir! actually i have just one thing to say sir if you can please explain how to read and understand all three financial statements balance sheet,cash flow and income statement to analyse companies
Thank you very much for this kind gratuity and appreciation. I'll try to create such a video per your suggestion -- personally, I don't use a balancesheet, cashflow & income statement based analysis to identify companies. A large part of my thought process is available in my newsletter stories, hope you have taken a look at that.
One Suggestion Shankar Sir.. if this strategy is well backtested, can you pleasecome up with smallcase as it would need quarterly o semi annual rebalancing?
Thanks for the suggestion
Absolutely
agreed
But smallcases can only be managed by SEBI registered advisors right? But Shankar how much ever stock market knowledge he possesses, is sadly not a SEBI registered advisor
5 stock from my filter were matching within the shared stock. Thank you its boost Confidence.
Thanks!
Much appreciated, Nilesh ji 🙌 .. Glad you liked this video, found it informative
Thank you for introducing me to the Trending Value strategy. My past reliance on just intuition for stock selection has led to mixed results, so this video has come at just the right time and motivated me to be more methodical when it comes to stock investing and to establish a Trending Value sub-portfolio. Also, your presentation was well-structured and delivered with clarity. I've subscribed!
Most welcome and welcome aboard! 🤗
This is what is called as higher order thinking and content.
This approach and strategy and content is very much appreciated
Thank you 🙌
This bestest of all content creators lucid, thoughtful, creative, simply outstanding!!!
Wow, thank you!
Thanks Shankar...I tried this, and followed the steps to get relevant stocks - used Ticker Tape for the same. But got confused with their data on 6 Month return. For one of the stocks that they showed as having highest return (Sukhjit Starch and Chemicals - 6 Month Return of 138), but in reality saw 6 months return as just around 20% (from around 230 to 280 as on Dec 21). And there is no momentum score for this stock. So I guess this is some data or calculation problem. And I wonder how momentum score is calculated, and why a stock does not have the score, esp if there has been movement?
Hello. Sukhjit Starch and Chemicals went through a stock split in October (old FV was 10 rupees, now 5). That might have disturbed the coding at Tickertape. As I always say -- a "screener" is most efficient when it's used to screen. It's not an efficient "picker" and this is where one recognition of issues, opportunities etc. comes in. Even in the case of trending value, I would have left out a few stocks in my Nov 2023 list due to some red/orange flags such as corporate governance, excessive debt, delisting rumours, rating downgrade, sector maturity etc.
@@shankarnath I had writtent to them about this wrong data for Sukhjit Stardch, and they have accepted and opened a ticket. Let us see when they come back.
@@manishp7206 Nice. Thanks for taking the initiative
My one question here is - does this work at any point in time and doesn’t take into regard the overall sentiments of the market prevalent at that time?
The study done by Capital Mind and Mr. O'Shaughnessy was on a calendar year basis. So there wasn't any element of market condition while constructing this
I was just reading your substack and your video pop-up 😂.
One question that is puzzling these days what's the sequence of order to go for while picking stock. Since we have so many strategy I am unable to understand how to pick best strategy.
1. Technical analysis
2. Fundamental analysis
3. Sector analysis
4. Valuations
5. Business analysis
6. Govt policies
7. International events like China dumping something...
Since I started with fundamental analysis and found few stocks but they're not moving and few stocks I avoided as their fundamentals are not good but they're making new highs 😂. Sometimes I am puzzled what's wrong. I am still at basic levels and learning is going on.
That's good timing 🙌 .. I might release the next issue of the newsletter today evening or tomorrow afternoon. I had taken a week's break but now I'm back with it.
With re: the strategy, pick the one that appeals to you most. For example - I like the GARP strategy & I also like 2/3 year revenue visibility companies (which I generally do in my newsletter). You have to see what's more appealing to you .. my preferences might not be yours & vice-versa. Hope this helps.
@@shankarnath was about to ask about the newsletter. Eagerly waiting ⏳.
Nice 😅
Sir, please make a small fee based smallcase and rebalance it as and when needed.
Glad you liked it. Yes, a smallcase is in my to-do list .. might take time, but it'll happen.
If you give an option to subscribe on WhatsApp along with email, the subscribers to the newsletter would absolutely balloon. This small thing was certainly a friction point in my case.
Thank you for all the value you provide.
Appreciate your kind appreciation, Srikanth 🙌 And thank you for the suggestion. I also had that thought of using Whatsapp community but I don't know how to go about it. Do you know anyone who's doing it -- maybe a growth manager who can guide me?
Thanks Shankar for an amazing concept. As always an excellent presentation. 👍
Thanks a ton
Very well explained. Many thanks.
Glad it was helpful!
@shankarnath your newsletters are really undervalued and so is your channel . Great work sir 😊
Thank you so much 🙂
For sharing your Knowledge take a bow ❤
You are so welcome
What a ‘value’ loaded video. Excellent insights as always. Thank you very much
Most welcome 🙌
Please update the new semi annual picks when it’s time. Thank you!
Hello. The updations will be done in the paid community I'm starting in a month or two. There I'll update not only this trending value strategy stocks but also other investment strategies like GARP, Peter Lynch, Loser's portfolio, Magic Formula etc.
Awesome video. Following you for some time.your content and way you explain brilliant
Awesome, thank you!
Wow! Just stumbled upon your channel. This is a Gold mine. Nobody teaches this. Thank you!!
Glad you found my work helpful!
@@shankarnath : Just a simple thought/question. Most of these companies are small and mid cap as pointed by you and have already given a pretty decent return. Some of these have given more than 100% returns in the L6M. Isn’t that an alarming point? Basically for how long a stock can keep running?
@@ravipandey8198 I don't know. But investing requires a rational understanding of fear and optimism. One cant be euphoric at all times and one can't be always petrified. Personally, I use numbers first and then emotions.
Let's take your example -- say, company X has gone up in price by 100%. But what if it's EPS has gone up by 150% during the same time. If one looks at only the price side, then he/she will be alarmed. Give the same scenario to someone like me, I'll say something good has fallen into my lap esp. if the company can replicate that EPS growth. I'll put all my energies in finding evidence of that.
@@shankarnath : Thanks for the clarification. Much love. :)
Amazing video!! New to channel..great explanation given for all metrics.
My question , can we use the same excel and add new stock with filtration method suggested going forward as well. Do we have the formulas included in Excel which gets updated once we add new companies to the list
Welcome aboard! The excel sheet is static, nothing gets updated automatically. You can download the sheet and modify it per your needs though. As I've given the entire process, feel free to do this exercise every quarter or bi-annually -- it'll take 1.5-2 hours every time.
Thank you so much❤❤
Essentially you have filtered out the top 10% as per your 6 valuation metrics, then ranked them as per the as per the momentum observed in these set of stocks ; Am I right ? @@shankarnath
Shankar Nath Ji.. you are doing great work.. all the best wishes!
Thanks a lot 🙌
10:16 its true 😊❤
Ha ha .. thanks! 🙌
Excellent👏👏👏 presentation, liked the video, you are doing great favour to retail investors
Glad you liked it! 🙌 Thank you
Another gem ! Great analysis , explained in simple and crisp manner . Thank you !
My pleasure! 🙌
hi in ticker tape the value of PE is negative so how ru managing it
Negative and blank values go to 10th decile
@@shankarnath tx great help
Great video. Narration is excellent....
Glad you liked it! 🙌
There's so much to learn from you shankar sir, thank you so much ❤
It's my pleasure
Awesome content and explanation !!!
Glad you liked it!
Can someone help regarding blank dividend yield values. What score to provide in case of blank dividend yield values? will it be 10 or something else?
Thanks in advance
Yes, you can use 10 for blanks and negative values. Blank in the case of dividend yield means 0% dividend
@shankarnath thank u very much 😃
Such one of the best & Useful info Video 📸
Glad it was helpful!
Is there a SMART BETA index correlating to this? That is TREND (MOMENTUM) PLUS VALUE? A curious question - how come TRENDING-VALUE-25 is populated with Small & Micro Caps? Because the MOM50 or MOM30 indexes have a few large and midcaps - does it mean when Value filter is applied they drop off?
1. Technically yes -- its a multi-variate factor using value and momentum.
2. More small & microcaps as that's what has been "trending" more than large caps
Thankyou sir ❤❤❤
Can we use momentum and value etfs instead of this
Most welcome. Trending value strategy is based on specific stocks and not on ETFs which is a basket of stocks. Pls do try it out if curious
great analysis.but when to buy these 25 stocks
Wisdom revealed. As Always very informative 👌👌
Glad you liked it 🙌
As always, an exceptional teachings from your bouquet of strategies. Kudos to you and your team.
Thank you very much 🙌
I am not able to arrive at same 25 names. Can u share decile logic applied for each column
1 decile is total universe divided by 10. I explained that part in the videos, pls have a look
Hi Shankar,
Have a question regarding calculation of the rank and decile score,
For some ratio's there are empty or invalid values. For EG: PE ratio might have 0 or negative values.
Do you strictly avoid these values in the calculation of decile score? Eg: If we have a total set of 1840 entries and if there are 1000 valid entries, is the decile score calculated in multiples of 100 or 184? - Because for dividend yield I found only 931 valid entries and if calculated incorrectly, the decile rank might wrongly change from rank A -> B based on the set chosen
I understand that any entries cannot be deleted from individual sets if invalid since we need sort by name of the company to slot each financial ratio together.
Hello. I had explained this part in the video -- pls see the part where I had the slide on assumptions. You can also check from the worksheet on my handling of blanks and negative entries
@@shankarnath Thanks for the reply,
I still found some grey areas after watching the video and wanted to double confirm that the NEGATIVE values are considered in computing the rank and decile rank, but EMPTY values are not.
For eg: Considering dividend yield, if there are total of 100 entries and if we have 20 empty entries, then the decile score will be calculated in divisibles of 8 (Considering there is data for 80 entries only). Is my understanding correct?
Awesome work Shankar..
Thanks a ton 🙌
Can you tell what weightage have you given to the composit score and the returns given by the stock over the last 6 months? Basically, what i haven't understood is how you have arrived at the top 25 stocks?
1. Equal weighting (as mentioned in video)
2. Please watch the video again for a better understanding. The process is explained there + do examine the worksheet
Thank you for full english video.. after searched so many i found yours.
You are welcome
Very well, Shankar! That's phenomenal work, and I'll definitely look into this filtration! Somehow, you make these things easy to process!
Thank you
Hello Sir ! I've been watching your videos for a long time. They are pretty good , give a new order of thiniking . I'm greatful . Just one ques --- 1) Do you update the list of 25 stocks in the excel sheet on periodic basis ? 2) Can we go through that sheet and update our stock holdings according to your updation ?
Thank you. I'm glad you like my work
1. Yes, this was explained in the video. 6 month rebalancing is ideal
2. I am not going to update this list in the worksheet. I'm instead going to take this into a paid community (plan to start one in 3-4 months) which will have not just this strategy but updations of the other 10-12 strategies I have talked about like shameless cloner, magic formula, losers portfolio, monopolies etc. I anyways need a platform to communicate any changes because it's not possible using YT community, newsletter etc. I think a paid community is a better solution where I can have a community manager to take care of things plus I can have a couple more researchers to ensure there is strong value coming through. Please give me until January for giving a more concrete picture on this. Thanks!
@@shankarnatheagerly waiting. wish to be the first few to join
@@shankarnath this seems to be useful. Please keep us posted about the updates. Would be willing to join.
Love your work. Please keep posting
Thanks
Will we be able to do monthly SIP in Value momentum strategy? Or add funds during 6th month rebalancing?
Also have you made it part of your satelite group of investment?
Same query
During rebalancing the portfolio, should i bring the weightage of all stocks back to equal or should i just sell the stocks that have fallen out of top 25 and buy the new ones from the money made by selling the old ones?
Please help with adding more details about the rebalancing too
Kindly refer to Mr. O'Shaughnessy's book for rebalancing specificity. Personally, I would have simply sold and bought i.e. I wouldn't have not brought the weightages to parity at every rebalancing stage
@@shankarnath In the book, it is mentioned multiple times that the portfolio is equi-weighted. So i think, we need to balance the complete portfolio i.e. sell some of the old ones too if there weightage has increased in the portfolio
Can u please tell when to sell at the same time for how many months should I recheck
Means should I shuffle my 25 stocks every month if they are not present in my list should I sell them
Thank you Shankar for a very informative video… Great job indeed
So nice of you. Most welcome!
Hello Shankar. I was wondering about this strategy from the perspective of someone looking to rebalance every 6 months. Does that mean that one should do the calculations on a certain month, invest an amount, and then not invest any more until 6 months later, when this is rebalanced? Or every month for 6 months, at which time this should be rebalanced?
Hello. Yes, that's correct. You review once every 6 months. If you start reviewing it everyday, then stock list will change everyday as the stock price & therefore the mcap will change everyday. It's important to give the system some time to breathe and work in one's favour.
Superb video as usual..
Huge Fan of yours!!
Thank you so much 😀
How do one invest in this kind of portfolio? Smallcase? AMC? INDEX? ETF?
superb work keep going ,Top notch video great knowledge inspiring ❤watched couple of times
So nice of you. Glad you liked it!
Does only value investing works .? For 20 to 30 percent cagr ??
No, many strategies do. I've covered quite a few of them on my channel
@@shankarnath does warren and Charlie Peter follow only value investing right sir ??
@@Harsha-tt2gv For specifics on their investing approach, kindly search on the Internet. A lot has been written on it.
How about a smallcase for this strategy? Something you would consider?
Thanks for the suggestion
I can’t find deep energy resources??
Do you just keep rebalancing forever or there is scenario when we book and create a new portfolio?
The book doesn't talk about it. But technically, rebalancing here means booking of profits (in most cases)
Shankarji very nice and eye opener topic. Thank you so much
You're most welcome
Hi Shankar, There are couple of thing I want to understand from the sheet:-
1. The very first tab is November'23 list, does that list have stock selections from previous year.
2. Deep Energy in the list is not listed so can we take 26th company which is Kothari Products
3. How frequently will you update the sheet.
Hi
1. Yes
2. Yes
3. Every 6 months (it will be a part of my paid community offer)
@shankarnath when will you be starting paid community and how do
one join?
@@ajman52 Hello. It'll take me 3 more months pls, will update everyone via a community post
@@shankarnath Update on the strategy. Current return on basket of stock (if bought one share each on 6th Oct) is -10.21%. It seems this strategy has higher beta wrt Nifty 50.
Am I missing something here?
@@19922009shivansh Curious to know -- why buy 1 share each? I ask so because assuming there was Vodafone & MRF on this list, then you'd invest a total of 1,20,010 rupees i.e. 10 rupees on Voda & 1.2 lakhs on MRF. You'll never get this analysis right that way
Too good 👍🏻. Great work sir
Thanks a ton
Thank you for the video. One question. Is it right to say that decile score for dividends should be other way round. I mean the higher the dividend lesser the decile score and lowest dividend comes in 10th decile?
Most welcome. Yes -- higher the dividend yield, better the rank
The GOAT of Finfluencers! Another valuable video. Thank you, Shankar. ❤
Glad you liked it! 🙌
Wonderful Video, lot of learning for me. Thanks for sharing such a valuable content 🙏
My pleasure. Glad to hear that
Hi, your service is beyond appreciation. Pls accept my gratitude. Thank you
You are very welcome
Keep the good work going eagerly waiting for the next always
Thank you sir. I will try my best
Sir great analysis and excellent information
So nice of you. Thank you!
Dividend Yield is inverse of P/E ratio so it's double counted as part of 6 value markers. Any ideas on that.
Can you please share the literature where it says "dividend yield is the inverse of the PE Ratio"?
@@shankarnath Oh my bad I was referring to Earning Yield and not divided yield. I think we are good. Thanks for your quick response. 🙏
Joel Greenblatt uses earning yield for his "magic formula".
Which is better trending valur or PEG ratio?
Another brilliant video from Shankar. Every time you come up a strategy, I can’t help but wish there was an ETF for it on the exchanges :)
Glad you enjoyed it! Yes, a shamelessly cloned ETF wont be far :)
🎉 fantastic job, as always ❤
Thank you!
Thank you sir can you also help us with screener query for the video strategy?
Most welcome. It's impossible to make a screener query for this as numbers have to be pulled out, deciles have to be created, a multi-variate analysis needs to be done .. a screener can't manage all this which is why I started with tickertape and then moved to an excel sheet. May I request you to watch the process again in the video, thanks!
Hi. In your worksheet for stocks whose data is -ve or not available you have updated as 10 decile and these stocks have made into the Final List (25 stocks, Oct 2024). Nandan Denim Ltd for example. Pls confirm if this is ok.
Hello, I've explained this in the video aswell. Kindly have a look.
Sir your data backed analysis are amazing. Love to watch your videos
Glad to hear that
superb video once again. i just have one doubt how did you combine momentum scores and value scores on excell. like what was the process so i can do it on my own.
Thanks! It's exactly the way I explained in the video. I took the top decile of combined scores (190 entries), I then found the 6M return of each of these 190 and did a descending order sort to pick the top 25
Can you make a detailed video on when to sell your holding....what are the criteria we need to look for to decide its the time to sell this holding...it will be really helpful.
Thanks for the suggestion. I did explain the rebalancing bit in this video. Rebalancing means selling the losers and keeping the winners
Are there any mutual fund that does the same as discussed?
I haven't come across any
Sir, the worksheet that you shared doesn't contain the full formula so that we could use it for our stock selection. If you could share the actual worksheet with it calculation formulas then it will of a great use. Thank you
Hello, which worksheet (i.e. name of the worksheet tab) are you referring to here and which cell pls?
@@shankarnathSir I am trying to make a similar worksheet. I got confused what decile to give when the ratio is below one till zero.
Lovely. Your videos are always data backed and crisp. Always helps in my learning journey. Thank you to keep them coming 👏👏
My pleasure
Point Blank - You're amazing! Really appreciate the efforts you put into research and presentation for your viewers.
Shankar - I will look forward to your updates on the list quarterly/semi-annually in the newsletter. Doing some more experiments & automation on top of what you have, will post back.
My pleasure! Glad you like my work 🙌
I believe, you ranked the highest dividend-yielding stocks in the 1st decile (as this was the only one higher preferred)
How can this be backtested?
No idea. Maybe you can connect with the Capital Mind team to see how they backtested it over 16 years
there should be a mulual fund or a etf for this kind of strategy
On this day I made sheet but the stocks differ only 12 coincide. Will it change within 2 weeks?
Yes it will change
Hi Shankar! I have watched a few of your videos and I really appreciate the clarity and simplicity with which you explain really complex topics. I like your sense of humour too 😃 You're definitely the best financial influencer that I have come across, and I have grown to trust what you say - so much so that when there's something new I want to learn about, I find myself looking (with hope) through your videos to see if you have covered that topic :) Thank you for all the hard work!🙇♂🙌
A specific question - I guess the deciles need to be ordered the other way for Dividend Yield (since higher the Dividend Yield the better)? So the highest Dividend Yield ends up in Decile 1 and the lowest in Decile 10?
Thank you very much for your kind appreciation. I'm glad you like my work 🙌 and find it useful
On dividend yield -- yes, higher the yield, higher up the decile order it is. So highest dividend yield = decile 1
Sir, you are the best finance creator out there. Exceptional analysis. I have watched your Insurance valuation video during LIC IPO at least 10 times. Was working today at Value of New Business and multipliers. God bless you.
Thank you very much for your kind words 🙌
I created small case out of this strategy, can i go with lumpsum and then SIP ?
How should i rebalance ? Should i exit the performing stocks and re invest after following the steps again ?
While rebalancing whats the lowest stocks that i need to replace? Or add above 25 ?
Same.
Considering this a part of satellite portfolio, I have limited the amount of investment thus going for lumpsum only. Planning to invest only the amount which I can afford to loose.
As advised in the video I plan to perform the same exercise on 6 monthly basis, Retain original stocks if they make the list, sell rest and add new stocks if they make top 25.
Hope Shankar sirji takes notice and replies.
Thanks a lot Shankar ji !!
Most welcome 🙌 .. happy you liked it
Hello Shankar
Is there any Mutual fund or Index fund following this strategy?
Hello. I haven't come across any
@@shankarnath Why dont you start a Small case and I will be your first subscriber...😀
@@rajeevbhatnagar9069 Thanks for the suggestion
Please bring a video on explaining about how to calculate future valuation of a business based on current guidance and growth prospects...
Thanks for the suggestion
Its a game changer. But just a question how do you allocate decile to all the 1800+ companies from 1 -10. Is there any excel shortcut to do it. Or you go through all the 1800+ companies one by one.
As explained in the video:
1st decile is 1800/10 = first 180 companies
2nd decile is 2* 1800/10 = 181st to 360 companies
.. and so on
Awesome ❤ as always
Thank you so much 😀
Shankar Ji, Amazing Video !!
you definitely deserve more followers than lot of other influencers who are misguiding investors with wrong techniques and information.
So nice of you. Thank you for your continued support and encouragement 🙌
Seriously, this is the most structured planned and simply put - Brilliant video on such a complicated topic. I've taken down notes and I personally plan to invest, preferably through making a custom smallcase and will rebalance on quarterly basis. Shankar Sir, your newsletters and such gold content is much appreciated. Just one question - Would quarterly rebalancing would be the correct approach or half yearly would be better. Thank you for sharing your knowledge.
Glad it was helpful! Appreciate the kind words 🙌 .. The quarterly vs half-yearly rebalancing point was explained in the video, kindly have a look pls
@@shankarnathsir also rebalancing, should we sell the stocks if they have grown and exceeded the ratio that we were supposed to allot, even when they belong to the new list ?
Need a little bit more clarity on the rebalancing part.
Should we get rid of stocks they were removed from the new list irrespective of them bearing profits/ losses overall ?
@akshay are you planning to create a smallcase ?
Can we retail investors create custom smallcases?