Simplify stock market investing is our aim. A reader may expect to improve her stock analysis skills by reading our articles.
Our articles cover conceptual aspects of stock analysis as well as contain real-life examples of companies as illustrations. Articles are based on our experience of more than a decade in stock markets, and our learning while analysing stocks for personal investments. We intend to simplify the process of making investment decisions in stock markets for the readers.
A Brief About Me:
I am active in Indian equity markets since 2006.
I have done MBA (Finance) from Indian Institute of Foreign Trade (IIFT) Delhi, one of the premier business school and was awarded the Gold Medal for graduating at the top of my class. Additionally, I have done certifications like Chartered Financial Analyst (CFA) from CFA Institute Inc, USA and Financial Risk Manager (FRM) from Global Association of Risk Professionals (GARP) Inc. USA.
I graduated in medicine (MBBS) from a reputed govt medical college in Maharashtra and worked for a few years as a medical officer in different institutions before realising that finance is my cup of tea.
My Learning and the Journey to Stocks:
“Always follow your heart” is my learning after experiencing three different professions, four different jobs, five states and meeting countless people along this journey. An inner voice always guides us towards peace and contentment and we should not ignore it.
As a full-time stock investor, now, I realize that I could have known my interest in finance during MBBS (1999-05) when I enjoyed reading Businessworld more than Robbin’s book of Pathology. But, I ignored it.
After spending eight years in the medical field, I realized that it’s not going to give me professional contentment and I gravitated towards Indian Civil Services (ICS). I again ignored the fact that it was during preparations for the ICS exam that I learned more about investing and bought my first stock.
As luck would have it, I could not get through the ICS exam. It gave me an opportunity to give finance a fair chance. I got selected for the MBA program (2009-11) at the Indian Institute of Foreign Trade (IIFT), New Delhi where finance and I clicked with each other and I graduated at the top of my class and was awarded the Gold Medal.
By now, I was convinced that one should always listen to one’s heart while deciding what to do in life. I applied only to finance companies for the job despite the fact that my medical background made me a logical pick for pharmaceutical companies. ICICI Bank hired me where I worked for 5 years (2011-16) and got the best credit risk analyst award.
In 2016, I decided to be a full-time equity investor and focus on my blog: www.drvijaymalik.com, which aims to simplify stock market investing. I teach my fundamental stock picking approach, “Peaceful Investing” to investors & corporates in workshops. The Economic Times had covered my investment approach (link)
Therefore, I believe that we should follow our hearts and it will show us the right direction.
Details of registration with SEBI:
Name: Vijay Malik
SEBI Registration Number: INA100004806
Registered Address: 2470, Urban Estate, Jind, Haryana. Pincode: 126102
The above details can be verified by searching for “Vijay Malik: at the following page on SEBI website: List of Investment Advisers
1) Profile by Economic Times:
Economic Times, a leading India business newspaper covered our investing journey under section “Dons of Dalal Street”
You may read the complete article covering our investing journey here: Dr Stock on duty: This physician spots multibaggers ‘peacefully’
2) Forbes India:
Forbes India covered our article “What I learnt from brief analysis of 2,800 Companies” as a recommended reading for its subscribers (Read on Forbes India). Excerpt:
In this elaborative article, Dr. Vijay Malik explains how he analysed 2,800 listed companies using two simple filters. 1) know about what a company does, and 2) see the financial performance of every company over the last 10 years. Then he jots down his learnings. He notes that there is severe shortage of companies with a large market capitalization. And most of the large-capitalization companies have astronomical valuations due to too much money chasing too few companies.
Forbes India featured our article “How to Identify if Management is Misallocating Capital” as a recommended reading for its followers (Read on Forbes India). Excerpt:
People invest in companies for the sole motive of making profits. No one wants to make a loss. But, rarely people read company annual reports word-by-word to understand the business and its risks. This blog throws light on how you can study a company’s annual report to see what the company is hiding. Investors need to be very cautious before putting money in companies that have a history of losing shareholders’ money.
In addition, our views about stocks and investing have been published in newspapers many times.
3) Our opinions quoted in financial media:
NASDAQ quoted our views in an article on its website “Why the Entrepreneur 30 Fund Belongs in Your Portfolio“. Following is the excerpt of the article containing our view:
“Stock Investing involves analysis of business models, products, markets, customers and management of existing companies before you make an investment decision. This is similar to the analysis required when one plans to start her own company to give shape to her business idea,” notes Dr. Vijay Malik.
Economic Times quoted our views in its article, “Beware! This market has stocks that will burn money; here’s how to spot them“. Following is the excerpt of the article containing our opinion:
Out of all the parameters, management is the most important feature of any business, says Dr Vijay Malik, a value investor. He was talking about the art of stock picking in an interview with ETMarkets.com.
“I read past annual reports, credit rating reports, media articles and other publically available resources to ensure if the company management has taken any decision in the past, which has been against the interests of minority shareholders,” Malik said.
Any sign of actions where promoter/management has attempted to benefit at the cost of minority shareholders should be the first ‘no go’ sign for investors, irrespective of how good the financial and valuation parameters may look like.
Once satisfied with the financial and management criteria, Malik uses a margin of safety framework comprising a customised ratio called the self-sustainable growth rate (SSGR) and free cash flow (FCF) to determine strength in the business and the buying range for the stock.
FCF is the surplus amount a business generates after it paying of its operating expenses and capital expenditure. It shows how efficient a business is in generating cash and if it can pay investors some return after funding its operations and expansions.
“If a company meets all my parameters and is available within my buying range, then I start investing in it,” says Malik.
Economic Times quoted our views in its article, ‘Quality’ has an expiry date! The bluest of blue chips can give you blues. Following is the excerpt of the article containing our thoughts:
“Buying a good stock in itself is not sufficient to generate long-term wealth from the stock market. Monitoring stocks in the portfolio is equally important. Once an investment is made, it is advised that investors keep on periodically checking whether that company still fits into the standards of operational and managerial performance. A buy-and-hold strategy with blind faith is not advisable for stock investors,” says Vijay Malik, a value investor.
Economic Times quoted us in its article “What is a reasonable price for a stock? This will open your eyes“. Following is the excerpt of the article containing our thoughts:
Noida-based full-time equity investor Vijay Malik says reasonable price of a stock is what factors in the risk of being in equities, the strength of the business model and what allows an investor to sleep peacefully after having bought the stock.
4) Top 10 Indian Investing Blogs: ValueWalk
ValueWalk, a US-based leading finance website, included our website in Top 10 Indian Investing Blogs. You may read it here on ValueWalk website.
Our website has been in existence since June 2014, trying to simplify stock market investing for common investors. During this period, many readers have found the website useful and have expressed their thoughts about drvijaymalik.com on different forums. We thank all of them for taking their time out and giving their inputs about this website.
We have listed a few of the testimonials that we have received from the readers: