Just sit on the mushroom!

Whenever I want to relax

I just pick up kids' books and comics or watch cartoon channels like a kid!

Yesterday I picked up my daughter's fairy tale book

and read a amuzing story.

In the story the kids with magical power used to go to the courtyard outside their home

where each of them would sit on a mushroom

say some words

and zoom grows the mushroom up

taking them to the fairy land in the sky!

Typically like investing in small caps.

When you trade in a stock on the basis of technicals

it gives you some profit!

But if you want 50% or 100% or 200% or even 1000% in some months or years

investing is the answer!

But the million dollar question is

which company to pick for investment?

As in the kids story, not every mushroom has the power, only special ones!

While I am going to take up fundamental analyses in my forthcoming posts, i wish to discuss the general points.

I have found that a majority of small caps which cross 2 crore turnover generally do rise till 50 crore turnover after which they find it difficult to rise further.

That is the point when they meet the roof be it financials or ethics or management etc.

So, I keep looking for 2-3 year old ventures with turnover of around 1-3 crores and then try to get my hand on as much info about it, as much about the management, as much out of the managements' mouth as possible.

I make sure that I read between the lines and find out what is hidden.

Very often I am able to come across a company which is being driven by able management and is sure to clock double digit or tripple digit turnover in next few years.

Every average investor has enough brains to see thru.

Once you have found the magical mushroom just sit on it and zoom!