Who is Ashok Jain?
Ashok Jain is one of the leading investor in Indian Stock market. He has invested crores of rupee in the market. In this article we will discuss about the portfolio of this ace investor.
He is the main behind online trading company named Arihant Capital market limited.This company is also listed on stock exchanges. Note it will also be mentioned as the portfolio stock held by him. So you can see the stock in above light as well.
Note he is also one of Promoter in Jain Irrigation systems and jain irrigation DVR. These two stocks are also mentioned in below list as his Investments. But in true sense they are not his investments.
With the portfolio we will also derive interesting facts about it and what we learnt about investment strategy of this ace investor. You can also read about Portfolio of other top investors like Rakesh Jhunjhunwala and mutual funds in below article of mine.
Click here for portfolio of Top investors and Mutual Funds
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Interesting Points about Portfolio
Based on above company list picked by Ashok Jain we present you some interesting facts on closer observation.
1. Granite the Hidden Sector
Granite is as of now unorganized sector in India. Most of the business in marbles and granite segment are still bossed by unorganized small local players. If you scan through the companies in this segment you will not find any big name.
The contribution of this sector in total market Cap of the exchanges is negligible. Yet from this hidden sector Ashok jain has picked up two stocks. Note Granite is also one favorite sector of Subramanian P who has quite a few stocks from this sector.
2. Focus on IT and Finance
Unlike few other Eminent investors in stock market (Anil Goel) Ashok Jain has faith in Finance and IT sectors. These two sector were largely absent in portfolio of Anil Goel. But with Ashok Jain these two sector make major chunk of the portfolio.
This proves that there is no one rule to make money in markets. The finance companies are also diversified in nature. He has housing finance company, asset management company and General Finance company in his portfolio. So inside Finance sector also he has diversified his portfolio.
There are only 2 IT stocks. But the lack of IT stocks in portfolio of other eminent investors have put a doubt in mind of investors as to what is wrong with the sector. But these two companies of low market cap being present in the portfolio removes the doubt.
3.Diversification all the way
Not sure if you have noted or not but all the portfolios we have analyzed so far have this thing in common. Almost all of them are diversified portfolios. Top investors have invested in multiple sectors across the board.
If they have invested in a sector then they have made sure companies have different business. They do not compete with each other. This rule was only violated by Subramanian P. He has invested in multiple companies in same sector with similar business area.
This is one learning which one should take care of.
What Portfolio tells about Investment Strategy?
In this segment we will try to read mind of the ace investor based on investment he has made. We do not have luxury to interact and know about the stock picking secret. But based on the picks we can try to figure out the thought process and use the same for our own benefit.
1. Focus on Unorganized Sectors
This one theme has emerged very strongly in some ace investors stock picking. They have picked up sectors where there is lot of small non listed companies battling each other and holding grounds in their respective locality.
Air Coolers were one such sector and we know how much Symphony has rewarded the early investors. Same theme is getting cashed in by most investors and Ashok jain is no exception. He has picked up sector like Granites for this purpose only.
2. Focus on Penny Stocks
Penny Stocks are favorite of all major top investors. They love to find good Penny stocks and watch them turn into Small Cap or Mid Cap. In this journey they will turn into Multibaggers and reward the early investors handsomely.
Ashok Jain is no different. He has also many stocks in his portfolio which are penny stocks to say the least. Note you should not confuse between Penny stocks and Junk stocks.
Penny stocks term I am using to denote stocks with very low market cap and are virtually unknown to common investors. They also have low profit to show. Once of the stock in his portfolio does not even have a website of its own.
3. Focus on Consumption theme
There is lack of companies which are B2B that is Business to Business in his portfolio. Most of the companies fall into category of Business to Customer that is B2C.
These companies are based on internal consumption theme of India. The Granite sector companies or Edible Oil companies or Finance companies all have central theme. The central theme is Internal consumption will increase driving these companies to new heights.
Conclusion
You may have known some unknown companies of stock market. These unknown companies should be analyzed first and then invested. You should not invest them directly because they are portfolio of an ace investor. The reason is simple you do not at what price they bought and they will sell.
But you can know about companies and create your watch list based on that. We will explore yet another eminent investor portfolio in next articles. So stay tuned.