Day 1: Journey to wealth creation and humble life | x to 1000x

Today, something strange happened. I was at the Westend mall, Aundh with my family and relatives. My son and wife were getting some ice cream. I told my Jiju that we should go to the nearby Crossword bookstore by the food court. He is also an avid reader, and a moment ago we were discussing something about the stock market. It was the evening of 22nd June, 2024.

We were randomly looking for a book about the stock market, nothing specific. My little son joined and started asking me to buy him a color-by-number book. I asked him to pick any book he liked, and I was still discussing with my Jiju which finance book we should buy. His response was that all books have some good nuggets to offer, so pick a book, read it, and find that nugget. I randomly chose "The Autobiography of a Stock" by Manoj Arora.

I can't express how I felt; I read the book in 3 days. It felt as if someone held my hand and showed me how to evaluate a stock and analyze the fundamental aspects before investing.

Now that I have read and understood the concepts and techniques, I am going to try these newly learned concepts in the real market. I am going to start with 12 lakhs INR. This journey is all about how to take it from x lakhs to 1000x. It is a super ambitious goal for a small-town boy like me.

In life, nothing is guaranteed, but it is my aim to achieve this goal, and also find my true self, and lead a humble and comfortable life with my wife and son.

In this article, I am also going to keep track of all the important factors and events that we can use for determining the share buy/sell/hold decisions.

3 very important factors to first check are

1. Sales/Revenue Growth Y-o-Y or Q-o-Q.

2. FCF Yield%

3. ROCE >= 20% minimum.

What is also important is when we enter the stock, we should track the DMA 50 and DMA 200 comparison.

Now, of course the bottom factors are important but these are ultra important.

Factors:

1. SSGR 3 CAGR > 20% (Very Important)

2. AVG SSGR 3 Years

3. SG 3 CAGR (Very Important)

4. SG 5 CAGR

5. SG 3 > SG 5

6. NPMgr 3 CAGR

7. Correlation EPS vs CMPgr

8. Correlation NPM vs Price

9. ROCE 3 CAGR > 15%

10. Average SSGR > Avg SG

11. CFO/FCF > 0.9

12. OPM% CAGR Growing > 0%

13. Mgmt Promoter HoldingCurrent

Events

1. Share Buybacks (find purpose).

Amount ₹: 0.1 Crore.

Target goal ₹: 100 Crore.