You can read my analysis of Moats and Floats here.
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| Click on the picture below to access the slides. |
Friday, March 13, 2015
Warren Buffett On Moats And Millions
Excellent presentation by Jeetay Investments on Moats.
You can read my analysis of Moats and Floats here.
You can read my analysis of Moats and Floats here.
Thursday, March 12, 2015
Moats & Floats: Info Edge (India) Ltd.
Disclaimer: This blogpost draws heavily from the teachings of Prof. Sanjay Bakshi, Warren Buffett and Pat Dorsey.
There are a lot of ways to make money in the stock markets. You can scan the stocks on frequent basis and try to find any anomalies between market pricing and perceived intrinsic value of the company. Then you bet on closing of this gap.
There is another way. A better way, but the one that requires more hard work. In this method, you avoid looking at the markets at first place. You see, if you pick a company by scanning from day’s winners or losers list, your valuation would be colored. This is what is known as Anchor Bias and it will have an adverse effect on your judgement skills. So, you pick a company – a random pick. You go to the website and download last 10 years of annual reports and start going through them one by one.
You don’t have to read all these annual reports cover to cover, you can pretty much focus on just Chairman’s letter and MD&A (a tip I got from Jana’s awesome blog Seeking Wisdom).
The rationale behind going through earlier annual reports is that you should view the business as an unfolding movie, not a still photograph. Also, you want to know how they arrived at their current position in the market today and whether management is aggressive or conservative and delivers on its promises.
There are a lot of ways to make money in the stock markets. You can scan the stocks on frequent basis and try to find any anomalies between market pricing and perceived intrinsic value of the company. Then you bet on closing of this gap.
There is another way. A better way, but the one that requires more hard work. In this method, you avoid looking at the markets at first place. You see, if you pick a company by scanning from day’s winners or losers list, your valuation would be colored. This is what is known as Anchor Bias and it will have an adverse effect on your judgement skills. So, you pick a company – a random pick. You go to the website and download last 10 years of annual reports and start going through them one by one.
You don’t have to read all these annual reports cover to cover, you can pretty much focus on just Chairman’s letter and MD&A (a tip I got from Jana’s awesome blog Seeking Wisdom).
The rationale behind going through earlier annual reports is that you should view the business as an unfolding movie, not a still photograph. Also, you want to know how they arrived at their current position in the market today and whether management is aggressive or conservative and delivers on its promises.
Wednesday, June 4, 2014
Madhav Marbles - Part II
"I just wait until there is money lying in the corner, and all I have to do is go over there and pick it up. I do nothing in the meantime." - Jim Rogers in Street Smart
There is no doubt that Jim Rogers is one of the best minds on investing we know as of today. He has authored several books sharing his investment philosophy with millions of readers worldwide. He is there on top of my people-whose-advice-I-follow list, right on top with Warren Buffet and Seth Klarman.
What Jim Rogers is essentially saying is what Warren calls "waiting for a sweet pitch" or time "when you can buy a dollar for forty cents". Seth has elaborated on this concept in his book Margin of Safety. He advices his readers to be patient and wait when Mr. Market throws you a deal too hard to resist. And when it does, you go all in.
"The greater the undervaluation, the greater the margin of safety to investors" - Seth Klarman
I intended to write just an update to my earlier blog post on Madhav Marbles. I attribute this pick (too early?) to Peter Cundill's successful strategy of balance sheet investing and ideas and teachings of legendary investors mentioned above.
Mr. Market in its all glory and excitement sometimes throws up a company which is trading way below its liquidation value. You can easily buy the company, sell off the assets at a discount, pay off all the liabilities in full and still have lot of cash to spare.
Madhav Marbles is one such stock in my view. A stock that is so clearly undervalued in the current market - it is neat money just lying there in the corner to be picked up.
I am attaching the updated tables for FY14 results for my readers to see. It is obvious that the stock - though has gained 50% in last four months, is still trading below its liquidation value.
You can read the first part of the post here: Madhav Marbles - Value Buy or Value Trap
Disclaimer: Invest at your own risk, you can lose money on a misprint :)
There is no doubt that Jim Rogers is one of the best minds on investing we know as of today. He has authored several books sharing his investment philosophy with millions of readers worldwide. He is there on top of my people-whose-advice-I-follow list, right on top with Warren Buffet and Seth Klarman.
What Jim Rogers is essentially saying is what Warren calls "waiting for a sweet pitch" or time "when you can buy a dollar for forty cents". Seth has elaborated on this concept in his book Margin of Safety. He advices his readers to be patient and wait when Mr. Market throws you a deal too hard to resist. And when it does, you go all in.
"The greater the undervaluation, the greater the margin of safety to investors" - Seth Klarman
I intended to write just an update to my earlier blog post on Madhav Marbles. I attribute this pick (too early?) to Peter Cundill's successful strategy of balance sheet investing and ideas and teachings of legendary investors mentioned above.
Mr. Market in its all glory and excitement sometimes throws up a company which is trading way below its liquidation value. You can easily buy the company, sell off the assets at a discount, pay off all the liabilities in full and still have lot of cash to spare.
Madhav Marbles is one such stock in my view. A stock that is so clearly undervalued in the current market - it is neat money just lying there in the corner to be picked up.
I am attaching the updated tables for FY14 results for my readers to see. It is obvious that the stock - though has gained 50% in last four months, is still trading below its liquidation value.
Disclaimer: Invest at your own risk, you can lose money on a misprint :)
Saturday, October 19, 2013
Mohnish Pabrai on his learnings from Warren Buffet
I first came to know about Mohnish Pabrai when a friend recommended his awesome book "The Dhandho Investor" to me in beginning of my investment schooling. The book is, no doubt, one of the best books I have read on Value investing and is a must read for anyone about to venture into the field of analysing business, seeking risk and valuing opportunities.
Today, I am sharing one of his videos where he shares his learning from legendary Warren Buffet. Do watch and learn!
Hat Tip: Alpha Ideas
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