Entrepreneur Prabhulal Adhikari shares his long-term investment strategies and core principles for selecting companies in the stock market during the Bajar Ko Chirfar premium podcast.
Prabhulal Adhikari believes that for successful investment, one should prioritize the company’s real business, financial health, management capability, and future income potential rather than just the market price. He suggests that investors should have a long-term vision instead of trying to make quick profits in a short time. He started his investment journey about 22 years ago and is currently involved in sectors like hydropower, cement, real estate, and hospitality. He also works as the Managing Director of Siddhartha Cable Car.
According to Adhikari, before buying any shares, a person must be clear about what business the company does, how much it can earn in the future, and who is leading it. If someone buys shares just based on advice from others without studying the financial statements, management skills, and business expansion prospects, the risk of loss will be very high. He said that investors should view the share market as an opportunity to invest in a business, not just a way to trade stocks for quick profit. Knowing the business well helps make better decisions when the market fluctuates.
Consider Subsidiary Investments
Adhikari mentioned that while evaluating a company, investors should look at its main business and also the investments it has made in other companies or projects. He gave the example of Ghaleemdi Hydropower to explain how a company’s investment in other projects is important for valuation. He noted that the market value of companies like Radhi Bidyut, Butwal Power Company, and CHDC can be influenced by the condition of the companies they have invested in. Therefore, investors should not make decisions based solely on the company name or current market price. It is necessary to study where the company has invested and what the potential returns from those investments might be.
Risk Management is Key
He emphasized that investors should think about potential risks before investing, not just the profit. It is important to have a plan for how to handle price drops and when to exit the investment if needed. He observed that many investors get into trouble because they sell in a hurry when prices go down or buy without studying when prices rise. He claimed that he has never faced a loss in his investment journey because he focuses on company evaluation and makes decisions at the right time.
Opportunities in Nepal’s Capital Market
Adhikari sees a lot of potential in the Nepali capital market. As more people participate and local businesses grow, the market will benefit from that progress. He thinks there are good opportunities in sectors like hydropower, banking, insurance, and cement. However, he warns that instead of just liking a sector, one should study the individual company’s financial status and future potential. He advised investors to rely on their own analysis rather than rumors or external tips. He also suggests that investors should have patience, as having cash in hand is also a form of investment opportunity and one does not need to buy shares at every moment.
AI Disclaimer: This article was originally published on https://bajarkochirfar.com. It has been translated with the help of AI. For the best understanding and accurate facts, we recommend reading the original Nepali version.
