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  • Category: Miscellaneous

    What is the number of moat companies you know?

    The term moat is very much talked about word among value investors. If you don't want to charge with the fluctuations of the volatile market then you can find some moat businesses and can remain invested in them for an almost whole life. The most have many types but in layman's terms, it is related to the company who is a leader at something especially the product. The best example I can give in the sense is Maggi. We all have been consuming Maagi for like forever and even if the Maagi does not come out with varieties of flavors we would be taking the classic one even if other brands with a wide range available. Be it Maruti for cars, Hero for bikes, and LIC for insurance we prefer them and take them almost subconsciously. So why not stocks of any such companies if they are listed and are cheap?
    Here are some companies having most in one sense or other and I request members to add to the list.
    Hindustan Unilever, Britannia, Maruti Suzuki, ITC, Infosys, Godrej Consumer, and the list goes on.
  • #712753
    There are many companies which are evergreen in their nature and always remain in business. They are generally connected to some fast moving consumer goods which are always in demand. These companies only get problem when some more efficient and effective company comes in competition and shadows the existing company products. Investing in these companies makes a sense as the investors money is in safe and secure business. The phenomenal rise of Colgate brand and Brook Bond tea are some of the examples of such endeavours which are still holding the fort for the investor. One of my friend told me that his father was a great believer in investing in these companies and though he had not much money with him but by systematic investment in moat companies he raised a fortune which is unbelievable but true. My friend also told that he has also learned the art of investing in market by investing in these select companies from his father and so far had already been benefited much.
    Knowledge is power.

  • #712759
    When it comes to investing in company either through shares or bonds, or even mutual funds, the reputation and the standing of company in the market is most essential. We may be using that particular brand but that does not mean it works good in the market. Some brands are unknown for us as they are rival brands to which we are not used to but they do good business in the share market. So instead of we gauging what is big, right and essential brand to invest we should always go for the expert advise who happen to be our well wisher and based on the recent past performance the preferences may be given on which brand to be invested. One thing is sure, the markets are volatile and cannot be same for all brands and even posh brands can fall down. So close watch on daily basis make sense to invest.
    K Mohan @ Moga
    'Idhuvum Kadandhu Pogum "
    Even this challenging situation would ease

  • #712762
    This is an interesting topic and I remember long back when there was a deluge of public offer of shares by so many new companies most of us applied blindly for them thinking that those companies were that time giving their shares at such a cheaper rate of Rs 10 per share and definitely in future it will go up and we would had made money. Unfortunately nothing of that sort happened and we lost money in that. We did not have the concept of moat companies or blue chip companies at that time and instead of putting our money in these we lost in the new issues. In share market we learn by losing money.
    Thoughts exchanged is knowledge gained.

  • #712793
    Some names are synonyms to their products. Bambino is a company which manufactures vermicelli. Now we started calling vermicelli as Bambino. That is how the names became very famous and consumers prefer the products from those companies only. Liv 52 is a good general medicine which will help us in liver functioning. This product is from Himalaya drugs and pharmaceuticals. I have never seen a similar medicine from any other Ayurvedic company.
    But how profitable are those companies is another point to be discussed before we decide on investing and keeping in those accounts for longer periods. Organisations like SBI, HDFC and similar organisations are also unique in their area of operations and we can invest in such shares also and can park the money for long.

    always confident

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