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THik bhannu bho sir, buy low and right and sell high. Investor mentality ni kunai kunai underrated company ma bannu ramrai huncha. Thank You.

Very well said Simrik ji. Spot on - exactly my thought process as well. As someone who just returned back to Nepal and a very tiny player trying to learn the market - these are observations/mantra too.

Thank you for some insider information.
So here I am thinking what small retail investors like me do in the stock market where a handful of players have a portfolio multiple times the daily volume of the exchange itself. I don't think there are many markets in the world where such scenario is present.

Let me start with what we shouldn't be doing.

1. Play a short game.
2. Try to time the market religiously every time.
3. Invest more than you can chew.
4. Panic.


What we should be doing,

1. Play a long game.
2. Buy established companies with a long track record.
3. Buy those with PE ratio in the teens and sell when PE shoots up above 25. High PE ratio should be tolerated for future growth stocks.
4. Obviously, we should also be aware of events like one time expenditure/earning that affects the PE ratio negatively or positively.
5. Look at the products/services/projects companies are selling and if there will be more demand in those sectors. For example, take a hydro power company and see if it has more projects in the pipeline or has already expended big cost items like digging a tunnel in an ongoing project.

Reasons to be positive for overall economy and the share market,

1. Political stability leading to the government spending more of the development budget.
2. Increased income from tourism.
3. For better or worse, even at a snail's pace, infrastructure are being laid. Several new airports, and road projects like Nijgad should provide positive impact to the economy.
4. Remittance will definitely increase as throes of Nepalese are outward bound. At some point, this will have negative impact on our GDP, as seen on our Agriculture sector right now. I hope at some point, many Nepalese working hard and low paying jobs in foreign countries realize that there is money to be made in Agriculture sector in Nepal.
5. Brokers venturing out of the valley to the money centers like Eastern Nepal and Butwal in the west.
6. More NRN participation.
7. More retail investors after the introduction of an online trading.

Reasons to be negative,

1. Whales can still **** up the system. They are too big for this pond. This will be an ongoing problem.
2. No oversight by regulatory agency on insider trading.
3. Too much conflict of interest among market principles. Are brokers honest? Are settlement being done in a real time without the price manipulation? Online trading, if implemented properly can fix this with proper audit trail and of course the provisions of serious financial penalty and jail time and life time ban have to be instituted and enforced. Do we even have something like SEC, as in the US? Also, I don't mind BFIs as brokers as long as they don't play market with the customers' deposit. More brokers there are, harder it is to collude and the customers have more choices.
4. There are many other structural issues in Nepalese economy and political system itself.

I think as long as we follow basic rules, retail investors will eventually profit from NEPSE which has many great companies listed.
Of course, we always appreciate some insider news from folks like Deepak Ji and Puji Bhairab once in a while which may help to score a sixer or a home run . In a market stacked against retail investors heavily, and manipulated by big whales, lets not help these whales by being jittery. They benefit from our volatile minds. We should keep calm and wait for the full moon in the horizon.

I find your posts very convincing and insightful. Many thanks पूजीभैरव jee.

I see many posts with name of Big Daddy, here is explanation to it,

Am I Eligible To Explain?
1 - I am in market for above 20 years
2 - I think i am in a position to explain this


Three Types of Big Daddies
1 - First Type - Buy Right Hold Tight - I have seen the big daddies buying right and holding tight. The most enormous portfolio I have seen of such individual was above 12 arab worth of shares and that was in 2016 mid. They trade less and invest more. They sell only after the scrip has made good leaps or its necessary to sell.

2 -Second Type - Traders - They trade a lot. The most enormous portfolio of such individual was 4 arab. They dont hold. They just buy and sell and hold occasionally. The shares they hold often change, from year to year.

3- Third Type - Hybrid - They have enormous portfolio too. The largest portfolio i have seen was around 9 arab. They have substantial part of portfolio as long term investment. And remaining substantial is for tradings.


In The Long Run
1 - The person who buys right always wins
2 - So called Big Daddies cannot affect the person who buys right
3 - Correct Shares always benefits and remains strong during all times

The Sutra of Success
1 - Buy The Right Companies
2- Study and understand the financial reports
3 - Understand the growth potential of company
4 - Understand the ethics and diligence of major promoters and boards
5 - Do the stress testing for more assurance



......Research Analyze And Invest.....Baki Ishwor Ko Leela....