32.24 Stock Market Masterclass


  1. The course is divided into three buckets:
    1. Macroeconomics
    2. Distinguishing between good and bad businesses
    3. Identifying overvalued and undervalued stocks
  2. The course is designed in a storytelling format
  3. Watch the video in a sequential manner
  4. Complete Homework and lectures.
  5. Look out for emails specific to the current stock market dynamics.
  6. 30% of learning will come from the course, and the rest from engagement with the community, homework, etc.

Section - 1 Chapter-1 Macroeconomics

Macroeconomics and Stock Market

Quantitative Easing

Quantitative Tightening

History of Money

Evolution of Money

How QE impacts us

How money flows internationally

Section-1 Chapter-2 Stock market

Basics of Stock Market

Investment System


Do you want to be an investor or trader?
Define 3, 5 and 10 year portfolio size via https://groww.in/calculators/sip-calculator
How much loss can you see on your portfolio? -10%. -20%, -30%, -40%?
Put a tag. For example I am a high risk, high reward investor looking for a return of > 20% per annum.

Key Points

  1. Macro investing is a great option.
    • There is information asymmetry in the stock market.
    • Macro investing bridges the gap.
  2. Figure out your investment style. It gets evolved with time. However, do not switch frequently when the share price decreases.
  3. Simplify the investment style. Make it narrative/your theory basis. Do not give it up until fundamental principle changes.
  4. Do not time the market. However, when the opportunity is in front of your eyes, do not hesitate. Buy the dips.
  5. Stock market is designed to go up.
  6. If for a good business or NIFTY50 a all time high was reached, it will be reached there again and it will be achieve a new high for 100%.

Portfolio Building

Core Portfolio

Checklist used by Akshat Shrivastava to select a stock for his core portfolio:

  1. Invest in NIFTY50
  2. Sell Nifty50 when it is overvalued and invest in HDFC Bank/HUL/TCS/Nestle
  3. Sell HDFC Bank when it is overvalued and invest in Nifty50
  4. When any of the above two are undervalued, close your eyes and buy heavily.

People in India and other developing countries are moving away from generic massy brands to premium brands for themselves, their parents and their children. Everyone wants to increase their lifestyle. The price and profit is at the premium segment of the market not at cheap value products.
Products/Commodities where branding does not matter, does not matter.

Stock Analysis

Good vs Bad Business


Your goal is to always get the best possible return on the money you have right now.

What to buy

Debt to equity < 10 AND
Market Capitalization > 1000 AND
Return on capital employed > 15

On 20% efforts you can get 80% result.
If you go deep and spend more time on the concepts answering 5-whys principle, the efforts will be 80% but returns will be 20%.
You have other things to do in life, so no need to go deep. Focus on what is relevant and keep moving.



A checklist to identify good assets

  1. TAM 🔼
  2. Industry Growth 🔼
  3. Debt 🔽
  4. Capital Intensive Buisnesses ❌
  5. Brand Power 🔼
  6. Nature of Product
  7. Blue Ocean (Relatively new industry with limited competition for the time being like Zerodha initially)
  8. Ability to survive Red ocean
  9. Value chain analysis

Business Analysis

  1. Porter's framework
  2. CCCP framework
    1. Company: Strength and Weakness
    2. Competitor
    3. Customer: TAM
    4. Product: What are the products?
  3. The only way to identify a multi-bagger is not technical analysis, not fundamental analysis, but business analysis.

Research On Coinbase:

  1. How does it make money?
  2. Is it profitable?
  3. Is it 0-1 or 1-N type company?


Tech Stocks

  1. No asset is evil or sacrosanct
  2. Money is made by all the assets even with high debt companies
  3. You will make money where you understand
    1. Basic -> Balance Sheet
    2. Industry Trends
    3. Nature of the asset
    4. When asset starts acting check all the above three points

The business model of the large tech companies is to find the next best tech and leverage it to get money.

Portfolio Building Strategies

1. Simplest investment strategy

2. Moderate Investment strategy

  1. First you need to create a balanced portfolio. If you can not make one, learn this first and do not enter without making a balanced portfolio.
  2. Start slow and aggregate individual assets when you fully understand the nature of the asset.
  3. Fix your risk and reward equation
    • Avoid higher beta cyclical/volatile stocks like L&T

Key Points

  1. Macro analysis and advantages of macro investing
  2. You must know fundamental and business analysis
    1. Funda: Analyzing Industry to find its growth potential
    2. Biz: Looking internally in a company to see its potential
      1. Revenue source
      2. Expansion opportunities
      3. Competitive advantages
      4. Avoid red flags like highly debt companies with no intention to reduce the borrowings
      5. Risk and Reward ratio you can find by this.
  3. Learn Technical Analysis
    • Overvalued/Undervalued assets

Always use combination of Macro + Biz + Funda + Tech analysis before buying or selling a stock.
Macro is the most powerful out of these all investing analysis.

  1. Follow the black box theory
    • No matter how hard you try you will always have incomplete information for a stock. Even in the company you are working for.
    • You have to take a calculated risk.

Commodity Stocks

PSU Stocks

Small and mid cap investing strategy

Market Capitalization < 5000 AND
Debt to equity < 15 AND
Return on capital employed > 15 AND
Sales growth 3Years > 15

How to pick stocks for your portfolio?

Akshat's startegies

Real Estate

Building Investing Narrative

International Investing

Private Equity

Investment Thesis

Taxation in the USA Market Investing

Types of Tax Term Indexation Benefit Tax on Gain
Long Term Capital Gains Tax More than two years Yes ✅ 20%
Short Term Capital Gains Tax Less than two years No ❌ As per Indian Income Tax Slab
Dividens Tax Not Applicable Not Applicable 25% broker cuts it

There are two types of taxes:

  1. Capital Gain Taxes
    1. LTCG > 2yrs -> 20% on profit with indexation benefit regards to Indian inflation
    2. STCG < 2yrs -> As per Income Tax Slab with no Indexation benefit
  2. Dividend Taxes
    • 25% of dividends will be withheld to the broker.
    • If you are not getting large amont (how much?) of dividends then you can ignore this

For more on Taxation see: Tax Planning For Salaried Employees in India

In short, how to pick stocks

After all the lessons so far, to cut the long story short, here we will squeeze down all the concepts into a few fundamental systematic way of picking stocks:

  1. Do a fundamental and business analysis of the individual stock and the industry.
  2. Do a technical analysis and determine the right time to buy the above stock.

Step-by-step process on how to research from scratch

  1. Use a screener to narrow down the scope of companies.
  2. How does the company make money?
  3. Is it an aggressive or defensive industry?
    1. Anything higher than inflation is a reasonable industry growth rate.
    2. You do not need to do a Ph.D. in the company. Check if you can understand 80% of the industry.
    3. Use Frameworks:
      1. CCCP and
      2. Porter 5 framework
  4. How the farm is going to grow? Is it going to grow?
  5. Is there any red flags? -> What is the number one concern for this industry?
    1. The $1 rule of Warren Buffet should be working out on the stock, i.e., profit should come back to investors either via dividends or stock price appreciation.
    2. This rule is only for small and mid-size companies.

A small company can grow in two ways:

  1. To use its own money
  2. To procure debt to grow

Timing the market

Resistance and Support

Channel Trading|1000

Interest Rate Theory

Impact on the Stock Market

Impact on Real Estate Market


Think about making 10cr in 3 years, than 1cr every year.

Sudden Gain Rule

How to sell stocks

ak********[email protected] -> Portfolio review

Over/Undervalue assets




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Thoughts 🤔 by Soumendra Kumar Sahoo is licensed under CC BY 4.0