If I have to say one thing to you before actually diving into the post.
It is this – Go and watch Rachana Ranade youtube channel and you will have all the knowledge of the stock market and a lot of other helpful things like financial and technical analysis.
But the reason for writing this post is this:-
5 days ago I happen to watch youtube videos and in the recommendation, I got CA Rachana Ranade interview on CNBC Smart Money and I could feel that this is not some ordinary talk.
I listened to it and got totally addicted to it.
Watching that I felt some people might want to know those topics in a little bit more depth.
So here it is my attempt to simplify the knowledge as she (CA Rachana Ranade Mam) likes to say “Simplified Knowledge.”
From here on, you will see this post in Questions and Answer format and along the way you will find some images and definitions to help you understand more.
(For your convenience “I” refer to CA Rachana Ranade for further post and Yes, also I did not write questions exactly the same asked by anchor Soniya Shenoy.
But you will understand the things.
So now I can say you know what this post is all about and here it is CNBC Smart Money talk with CA Rachana Ranade.
CA Rachana Ranade’s Journey
CA Rachana Ranade runs a Youtube channel named CA Rachana Phadke Ranade and has 1.5M+ subscribers (as on 17 Dec 2020).
She started her youtube journey in 2009 and since then she is delivering the needed content around topics like Basics of Stock Market, Technical and Fundamental Analysis, Personal Finance etc.
CA Rachana Ranade also holds various other valuable degrees like (Chartered Accountant, Bachelor in Commerce (BCom), Post Graduate Diploma in Management (PGDM) & Master in Business Studies (MBS).
With her 10 years of experience in teaching more than 10,000 students in-person and more than 1,000,000 students online and she, herself has been investing for about 12-15 years.
She has taken Investor Awareness Sessions on behalf of Securities Exchange Board of India at more than 50 organizations! She has conducted “Finance for Non-Finance” workshops at various organizations including few MNCs.
(source – About US page on rachanaranade.com)
CNBC Smart Money with CA Rachana Ranade
The anchor asked the very first question on Rachana Ranade Interview – “What are your advice to Millenials and young crowd on How to take their passion and monetize their content on Youtube?
CA Rachana Ranade – We have seen that during lockdown the no. of Demat accounts and youtube accounts both increased but as things started getting back to routine the no. of active Demat account and active youtube account started to go down.
My advice is to do something which you can hold on to long term and you should do if it is your passion.
Don’t follow someone blindly and start imitating them.
You should do it if making Youtube videos is something you like and you have to be consistent.
For example– I post youtube videos every Wednesday and Saturday without fail.
You should have consistency and provide quality content.
If you start doing this simple basics thing then you can start monetizing your content from advertising revenue. you own merchandise (when you have build your audience), start a membership and also super chat.
There are a lot of good questions asked and brilliantly answered on Rachana Ranade Interview.
Question – How you differentiate your content?
CA Rachana Ranade – I tell them everything and anything is available free of cost online.
I pitch them by saying when you enrol into my course, you’ll have only that much sufficient knowledge which can get you started investing.
Everything is available online but the problem it’s so much out there to consume and you end up feeling overwhelmed.
I always simplify the things for them and tell them I don’t sell knowledge, I sell simplified knowledge.and that’s my edge over the competition.
I convert knowledge in “simplified knowledge” to masses and it can be done simply because I have experience in teaching space for more than 10 years and give my consumers only what is needed.
Question – How do you pick stocks?
CA Rachana Ranade – I prefer to see the macro view first and then do industry analysis.
And I tell retail investors “Don’t pick stocks when they are too early”.
Give them time to prove themselves and this way the odds of getting better returns increases.
I am happy to get 2x returns and if external factors are suitable then it becomes easy for companies to give returns.
I follow a “top to down approach” to identify companies.
I start with Economy Analysis follow by Industry analysis followed by company analysis.
If we take current scenarios then Corona Vaccine is good example.
For economy analysis, I see demography of our country.
Does it suits the company right now and try to correlate it and once I drill down to specific industry then I can pick up the company.
Typically we use this concept for banks but I try to use this concept for other companies as well.
Its also known as CAMEL model.
Refer to below graphic to understand CAMEL.
Some important things to check :-
Idealy I try to check the company having a monopoly or at least less competition.
If they are leaders in their segment then there is nothing like it.
Question- What are some important ratios you look at?
CA Rachana Ranade – I always look at ROE and ROCE.
See below image to understand both ratios fully.
If I were an owner of a company and I am not able to fetch even 5% return then might as well I invest my money in FD.
I feel like 5% for ROE is very less and if I am taking a risk with my money I will expect at least 2x or 3x return.
I would go for 15% ROE atleast and in similar way I will check for ROCE as well.
And if any company doesn’t meet this criterion then it doesn’t even come in my filtering list.
Then I check How much is free cashflow.
I see lot of company having good operating cashflows but they have very less free cashflow.
It shows some incompleteness in management and they might not perform well in long run.
Other than all this, I also check ratios like:-
- PB Ratio
- Price to sales ratio
- Debt to Equity
- Interest Coverage Ratio
- Current Ratio
- Inventory Turnover Ratio
Question- What are your favourite stocks?
CA Rachana Ranade – Right now my favourite stocks are Jubilant Foodworks and Polycab.
Below are the some details of Jubilant Foodworks and I also share some details of Polycab but
since she did not speak about it very much so I am not writing about it and if you want to know about Mutual Funds, you can read this post.
Question- What is your simple advice to all viewers?
CA Rachana Ranade – My simple advice is ‘Invest in only those companies which you understand.”
If you are a housewife then you understand FMCG (Fast Moving Consumer Goods) well so why don’t you invest in them.
You can give some contribution by being an owner of the company and also give some returns to top-line also.
For Example– If you consume Brittania biscuits then why don’t you invest in Brittania.
What do you think?
That’s it readers from my side.
I also excluded some portion of interview like;-
How she started youtube channel?
What are her 5-year plans?
My goal was to keep this post centred towards finance topics and at the same time tell you about this wonderful youtube channel.
She is one of the best teachers on Youtube.
And my words don’t mean much but I think its my responsibility to give my reader the best I can and not only related to finance and business but other things also.
If thats the case, then you should check Financebread Facebook page there I share a lot of the things (which help you in blogging and writing) cannot share on this blog as this is strictly for Business and Finance.
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This is the video of the complete interview.
Thanks for spending your valuable time with us.
Take Care and Be Healthy.