Wednesday, October 26, 2016

Templeton's Mark Mobius Reveals Strategy For Picking Small-Cap Multibagger Stocks & Also Offers Stock Tip As Diwali Gift

Is gold going out of style for the Holiday?

From the Rakesh Jhunjhunwala fanboi site:
Mark Mobius, the visionary fund manager of Templeton Mutual Fund, is a battle-scarred champion of the stock market with several multibagger stock picks to his credit. Tanvir Gill of ET has charmed him into revealing all top secrets of the techniques he adopts to find the winner stocks and has also got him to recommend a stock as a Diwali gift to us 
Tanvir Gill, the young-faced editor of ET Now, is one of the most pleasant faces on television. Her stylish mannerisms and charming smile mesmerizes the audience and they stay glued to the show, resulting in super-high TRPs for the channel.
However, Tanvir’s USP is not only her effervescent personality and charming smile but that she has also a deep knowledge of stocks and a razor-sharp mind. She is also a master of psychology and knows how to get her guests to reveal secrets that the audience wants to hear.
One can see this play out in Tanvir’s latest interview of Mark Mobius, the legendary fund manager with Templeton, the trillion-dollar global Mutual Fund.
When Mark Mobius started straying from the topic and began dilating on academic global macro-economic issues, Tanvir rightly sensed that the audience would soon lose interest. She tactfully and skilfully brought Mark Mobius back on track and got him to reveal information on specific stocks and strategies.
I know you are not going to talk stocks though I would want you to talk stocks”, Tanvir started off in a firm tone, laying down the terms of engagement.

She then coaxed him to give three ground rules that have never failed while picking up a multibagger idea within the small cap universe.

Three-fold strategy to finding multibagger small-cap stocks

Mark Mobius cautioned that small-cap and midcap stocks represent risky businesses with unpredictable business cycles. He warned that the companies are owned by the promoter-families and that there are doubts about the integrity of the management.

However, he assured that if investors follow his three-fold strategy, they could avoid the deadly stocks and at the same time home in on winning stocks that can become multibaggers:
(i) Ensure that the Company has very good management. The management must be people with integrity. They must also be people with good management know-how and with a deep understanding of the market. They must also know how to relate to investors. The corporate governance of the Company must be impeccable.

Mobius emphasized that quality of management is “very, very important”. He added that his fund does a lot of intensive research into the people behind the companies before investing any funds in it....MORE, including the Diwali gift.
HT: Alpha Ideas