Most of us are born with gambler mentality or our society taught us to think linear, the more effort you put in the more result you get or we get tuned for monthly pay checks and prefer short term over long term. We are wired for thinking short term, instant gratification, we are not wired to be long term investors or happy with delayed gratification. But this need not deter us, with repeated practice, we can rewire ourselves. It is difficult but not impossible.

Now let me tell you how we can do this....."You need not do anything most of the time, just wait for the right opportunity when odds are in your favour by wide margin. And bet heavily when the odds are extremely favourable, using resources available as a result of prudence and patience in the past". This is the biggest lesson I learnt from no other than Mr. Charlie Munger. Experience tends to confirm a long-held notion that being prepared, on a few occasions in a lifetime, to act promptly in scale, in doing some simple and logical thing, will often dramatically improve the financial results of that lifetime.

One of my client asked me yesterday, if he can buy "Avanti Feed" at current price of INR 404 (High/Low - 999/350) trading at PE of just 13.65 which looks interesting for him?

I said, are you doing investment or chasing momentum? Just because a stock has performed in past may not be the pre-requisite for the stock to perform in future and remember that it's our last memory fresh in mind which is the real enemy of ours, just because you missed the massive rally in this stock you want to catch the falling knife. 
Shrimp manufacturers like Apex frozen, Avanti feeds and Shrimp feed players like Waterbase are good companies. But none of them are likely to perform in terms of stock price appreciation in next 2-3 years mainly because being overhyped segment/stocks in last rally. 

I will not suggest buying fallen angels. It's observed that investors tend to line-up to buy those stocks which have once been STARS & fallen very deeply. Just think, why smart money dumped it (almost all these stocks has lost 60-70% from peak)? Shrimp exports story was at its peak during 2017. Good days seem to be over for these stocks, US hiking the anti-dumping duty on shrimp imports to 2.34% from 0.84% is one of the reason to quote.

I will always suggest you to buy strength & avoid weakness in the market. I have made a list of 5 selected stocks which are showing strength in this weak market and most likely to emerge as the next multibagger stocks in making. In case if you are looking for these 5 stocks.....

You can WhatsApp "5 Stocks" @+91 7558960018 or email to mail@3ccapitals.com

Regards

CA. Binoy J. Kattadiyil