Addendum - Sterling Hotels

Addendum - Sterling Hotels

In addition to my earlier post on Sterling Hotels, Rakesh Jhunjhunwala and Radhakrishna Damani have invested 800 mn INR.

http://www.indiainfoline.com/Markets/News/Sterling-Holiday-Resorts-up-after-Jhunjhunwala-invests-in-stake-reports/5254397841

Stock jumped close to 10% and was in upper circuit.

However, today it didn't hit a circuit.

Need to decide: Trust RJ and RD's judgement and make a splash?
I know I didn't for VIP and regretted ever since.

Rakesh Jhunjhunwala...Radhakishan Damani...uh..how about both?

Radhakishan Damani - Dream investment was VST Industries.
Bought 26% (approx) @ price of 63 crores (source: moneycontrol)
Current Investment value: 520 crores in 10 years.
Dividend: 71 crores

Rakesh Jhunjhunwala - Dream Investment was Titan Industries.


Do these both have any stock in common?
Yes.

CRISIL, Delta Corp, Sterling Holday Resorts.
I had mentioned a post on Sterling Holiday resorts (http://mymoneyrules.blogspot.com/2011/08/holiday-season-resorts-beckoning.html)

What do they look for in a stock?
All stocks which have a competitive advantage.

VST Industries: Cigarette Industry with no new competition coming in
Delta: Gambling (highly lucrative + goa advantage)
Sterling Holiday: 14 resorts which a new competitor will have a tough time (courtesy high real estate prices)

We have to spot companies with strong fundamentals + competitive edge and hold them close to heart with patience.

Some just follow either Radhakishan Damani or Rakesh Jhunjhunwala

Some others, may follow both by buying the common stock from their portfolio.....are you one of them?