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Warren Buffett is Investing in Indian Stock Market !!!!

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Warren Buffett, Who is this guy????

He is world’s greatest stock investor and comes under top 3 richest people. Businessman and investor Warren Buffett was born on August 30, 1930, in Omaha, Nebraska. Investing by age 11, Buffett was running a small business at 13. Buffett later started the firm Buffett Partnership in Omaha, with huge success. In 2006, Buffett announced that he would give his entire fortune away to charity (est. $62 bil.), the largest act of charitable giving in United States history.


So Buffet is going to invest in India Stock market!!!! A lot of enthusiastic. If Buffet is buying those stocks so we will also buy the same J J J

Next question you may have, when Buffet is going to invest????

Yes, Every time he is investing …. He has shared his principles, if we follow them then we can ……

In case Buffet will come and start buying stocks from NSE ,what would be those stocks he will buy …..

Before that I need to make a gist of Buffet Investing principles as below:

1.    EPS should have consistently risen in the past 10 years with no negative EPS any year
2.    Long Term debt in the current year should be less than or equals to 5 times its earnings.
3.    10 year average return on equity(ROE) should be at least 15%
4.    10 year average return on total capital(ROCE) should be at least 12 %
5.    Free Cash flow in the current year should be more than zero.
6.    Return on retained earnings should be higher than or equals to 12 %
7.    Top Management and understandable business (depends on individual)

Note: For my calculation I have taken only 5 years calculation instead of 10 years .But it is advisable to consider 10 year data

Company
Does EPS consistently increased for last 5 years?
Long term debt for current year
current year earning
5 yr AVG ROE
5 yr AVG ROCE
Is Free cash flow for current year is greater than 0??
Return on retained earning
Management Quality
TCS
Yes
11000 Crore
64672.93 Crore
37.14
46.76
Yes
67
Excellent
ITC
Yes
3545.5 crore
34474.15 Crore
34
47.05
Yes
47
Excellent
Infosys
Yes
0
44341 Crore
25.7
34.9
 Yes
65
Excellent

Here I have taken all the data from different websites as well as company website. All the data are as of 31-March-2014.The above stocks pass Buffet filter criteria.

I am a die heart fan of Mr. Buffet!!!!

So guys here I have just calculated and gave 3 stocks from NSE but I am sure there are a lot of stocks.

And Friends, Buffett holds the stock for long time ……




What are your Warren Buffett Stock and how long you can hold those in your portfolio????



Disclaimer: This is not a buy or sells recommendation. Just my thought from educational point of view. I may hold few of these stocks and there might be a chance of biased opinion from my side. Please do your analysis before investing.


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Comments

  1. sonuOctober 2, 2014 at 11:41 AM

    Thanks for sharing valuable information....:)

    ReplyDelete
  2. sumanOctober 2, 2014 at 12:32 PM

    Thanks abinash for sharing in fb

    ReplyDelete
    Replies
    1. Abinash PatraOctober 2, 2014 at 12:47 PM

      you are most welcome Suman !

      Delete
    2. Abinash PatraOctober 2, 2014 at 12:54 PM

      You can subscribe by giving your mail id .. so that you will get auto updates ..

      Delete

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