How to Invest in Cyclical Stocks with Case studies

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In this continuation of our Face2Face video, we have with us Mr. Vivek Bajaj, co-founder, StockEdge, Elearnmarkets, continue his conversation with Mr. Jiten Parmar about the fundamentals of value investing, by taking up some informative case studies on cyclical investing and how to choose the best cyclical stocks for our investment. Watch the part 1 video from here

We will start this video with a revision of the basics of good value investing, especially when cyclical stocks are involved, and how we can gain an edge over the stock market with a positive attitude even during a bearish phase in the stock market. Next, we will talk about the basic definition of contra thinking and how we can use it to our advantage in long bearish phases in the stock market, to find the best cyclical stocks investments for us.

Next, we come to the main focus of this video where we will begin with the exhaustive case studies to show how cyclical investing, combined with the basics of value investing, can help us find the most profitable opportunities in the market. In the first case, we will see a case with a graphite company, to see how herd mentality can affect our profits in the long run, and we will see how the trade in the case study will play out for each type of investor, and when should we enter and exit with such underlying circumstances for the stock.

With a case study on two poly film companies, we will take a look at the various fundamental parameters that can make a cyclical industry stand out to retail value investors and the importance of catching the right timing to attain the best value for our investment. We will learn about how cyclical stocks give us a great advantage by giving us periodical opportunities for profitable long-term investing.

With a mining company, we will see how a boost in sales has helped investors find a value investment, and how the cash and asset holdings can affect our decisions to invest in them. With such more case studies, we will explore the practical applications of each basic rule-of-thumb when it comes to value investing and cyclical investing.


Jiten Parmar in Face2Face

Your Speaker

Jiten Parmar

Mr. Jiten Parmar is a value Investor, and the co-founder of Aurum Capital, a SEBI-Registered Investment Advisory company. An entrepreneur and a passionate long term equity Investor. Jiten has been investing in the US markets since 1993, started in the Indian Equity Markets in 2002. As an investor, he focuses on Small and Midcap stocks, and works in the stock market by understanding business cycles and preparing strategies to invest in cyclical/commodity stocks.
Mr. Vivek Bajaj

Your Host

Vivek Bajaj