"Don’t tell me what you ‘think,’ just tell me what’s in your portfolio.” - Nassim Nicholas Taleb
Hey there! I’m Zahid Lilani, your friendly neighborhood tax auditor with a flair for numbers and a passion for the stock market.
Here’s the deal: I’m on a mission to turn my investing journey into a financial adventure worth watching. I dive headfirst into the stock market, hand-picking individual companies like a kid in a candy store, except I’ve got a screener that only lets through the sweetest ROIC and PEG ratio treats.
My due diligence? It’s like peeling an onion-getting to the core of what a company does, how it rakes in the cash, and making sure there aren’t any bad apples in the management. Once I’m convinced, I put my money where my mouth is and hit that ‘buy’ button.
Join me as I navigate the stock market, one ticker at a time, with a dash of humor, a sprinkle of strategy, and a whole lot of real talk.
Appreciate the honest feedback. Just to clarify, you are asking that I get rid of little things that I do like logging in to my broker, showing each and every screen, etc? Or are you referring to monologue that I do in the beginning?
I have a pain threshold of 50%. Since I’m investing $100 weekly, it’s important to have an exit plan to manage risk and avoid emotional decisions. Setting a limit helps prevent even greater losses and allows me to reinvest in more promising opportunities. In this case, back into the pie.
@@lilaniz I totally agree with your rule-based system of investing. But why incur such high losses? The IBD “elevator” strategy suggests selling at 8%, with historical data indicating 8% dips mean either something is wrong with the company or market, or the entry buy-point was too high. 50% is much more than the typical approach, so is there some sort of reasoning for it? Is it to ensure you don’t miss any growth from a stock, or something?
if the stock goes down 50% you'll sell it? Even if nothing with the fundementals has changed? If nothign has changed but the stock price has gone down, I would double down and buy more. If the price is 50% down and something has fundementally changed then I would make that decision etc.
If a stock goes down 50%, my pain threshold triggers a sell signal. Even if the fundamentals haven’t changed, having an exit plan is crucial to manage risk. This approach helps me maintain discipline and frees up capital to invest in other companies.
Thanks for that. I get to use just 3 stocks as a free user on AlphaSpread. Do you know of a screener or website that lists undervalued stocks and is free? 😛
I only recommend selling if a stock goes bonkers to the upside like I did. HUM does this. If it goes flying to say 700-900 that is a time to sell, pay the tax, because that thing crashes eventually and back to square one. Held it through the 2019 and 2020 beatdowns. I bought the dip in 2018 thinking I was good at 270 when it was at 360... NOPE. I saw 230 again. When I saw 430 in October 2022 I was like YEP I AM OUT. AIGHT. HERE WE GO AGAIN. It goes flying to 600s I am out. Probably what happens if team red wins the election. Team blue has to pull money in from somewhere if they want to spend crazy. Team red probably spends crazy, but I have no idea where they pulling money in from.
That’s a great gain. Sometimes you got to sell to stop the loss. But the again, it’s really a judgement call. If you no longer believe in the business, it’s time to sell. For gains I am more of VC type investor. Needs to be 3x or 5x which is the VC benchmark for exits.
I like the lines on DAR and HUM they go up over the long run. I think they are good purchases to hodl, they are companies I have held in the past before the stock price went bonkers to the upside (I went through some beatdowns before so I am not surprised to see it beaten down again) . I need to get back in on DAR. I am kind of betting against HUM by owning CVS and I don't like to hedge / want more healthcare insurance exposure. Janus I don't know much about
I prefer CVS to DG, but I wouldn't fight you over it. I like me a vertically integrated monopoly forming (clinic, make drugs, sell drugs, offer healthcare, and a store). I like DG under 135. I had to sell at $150 from covered call. Sold the $144 put for April 12th. I currently have about 7 shares. Closing below 144 on the 12th and I will be 107 again. I probably go further up the money and out in time to about 185 covered call. I am a major believer in the resurgence of inflation. Kroger and all the stores will do well. Cereal companies, agriculture, etc. ADM is still cheap for agriculture (they had some bad news a month back, a small division of the company misreported financials and they had to fire some people - it was 10% of the company's business but made the stock crash 50%).
Not sure what made you buy TACT, but the machines seem nice. I used to work in the food industry. I don't know what things are like now. I would enjoy a machine that had all the recipes on there instead of guessing off memory.
update: by the end i noticed your other 2 stocks, one of them has more wacc than roic and the other one is under 10 years (JBI), i wouldn't go for those unlike humana. i have to say part of your approach is really good!
Thanks man, appreciate you taking the time out and watching the video and providing feedback. You are right about JBI, I made a mistake. I think I might have looked at incorporation date instead of IPO data which is 2021. Will discuss it in the next week's video.
I started on December, and I have a similar mentality as you about keeping in mind famous investors philosophy like Warren Buffet! i do not want to aim for the stocks that everyone is going especially when they are not in a good price, above their intrinsic value), i have also looked to have companies that have been around 15 years or more on the market, so i appreciate finding a video like yours! kudos, i will watch your other 2 videos as this was the first one i got to see. (still on minute 7:20, but i liked your strategy)
