Based on PE, which index looks cheaper ?
Anonymous Quiz
34%
Nifty 50
8%
Nifty Midcap 50
57%
Nifty Smallcap 100
Time!
If you want to do better as investor, the single most powerful thing that you can do is... increase your time horizon. Time is the most powerful thing in investing. It helps Little things to grow big, and big mistake fad way. It can't neulltralize luck and risk but it pushes results closer towards what people deserve!
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Psychology of money
Morgan Housel
I keep reading this quote when I feel like checking market quotation.
If you want to do better as investor, the single most powerful thing that you can do is... increase your time horizon. Time is the most powerful thing in investing. It helps Little things to grow big, and big mistake fad way. It can't neulltralize luck and risk but it pushes results closer towards what people deserve!
-
Psychology of money
Morgan Housel
I keep reading this quote when I feel like checking market quotation.
Quotes from Early Book Reading
"Persistence is the character of man what carbon is to steel." (Think and growth rich)
"A quitter never wins and a winner never quits" (Think and growth rich)
"They must know something that you don't "
- Seven most dangerous words in investing , Prof. Aswath Damodaran
"Diversification is the protection against ignorance"- Warren Buffet in a Q/A
"Today's investor is so concerned with anticipating future that he is already paying handsomely for it in advance"- Ben Graham
“Don’t need to swing at every ball”
-Charlie Munger
Share your favourite quote to enrich others.
"Persistence is the character of man what carbon is to steel." (Think and growth rich)
"A quitter never wins and a winner never quits" (Think and growth rich)
"They must know something that you don't "
- Seven most dangerous words in investing , Prof. Aswath Damodaran
"Diversification is the protection against ignorance"- Warren Buffet in a Q/A
"Today's investor is so concerned with anticipating future that he is already paying handsomely for it in advance"- Ben Graham
“Don’t need to swing at every ball”
-Charlie Munger
Share your favourite quote to enrich others.
Six Months of Inactivity
A job of a portfolio manager is to make sure the portfolio is aligned towards the sectors that are going through tailwinds.
Currently, wire and cable, hospital sector, banking and microfinance, consumption segment are the sweet spots where market is savouring tailwinds. As days follow night, liquidity chases these sectors. And we have seen, KEI Industries, Apollo hospital, South Indian Bank, Ujjiban small finance Bank, CCL, Varun Brevarage doing well in last 6-8 quarters.
Now, we can connect the dots with tailwind and return. The blueprint of momentum investing is borrowed from physics. You need forces to stop the momentum. Since these sectors are going up, it will continue to move upwards until some negative setup develop externally.
On the other hand, slow Compounding portfolio stocks are facing headwinds.
Asian Paints - landscape of Paint space is going to change. Will the Gorilla remains Gorilla, a big question.
Pidilite - Other competitors are now aggressively expanding products and distribution network
PI Industries - late monsoon this year, H1FY24 are going to be flat for agrochem companies.
HDFC Bank- merger will reduce profit margin, remaining concern for PE derating
Kotak Bank- While the banking sector is doing well, kotak bank in last two years clocked no return. Probably, the concern of Uday Kotak moving out of CEO chair is a concern.
Abbott India - the market share of top contributing drugs has slipped away. Company will depend on new launches for future growth
Nestle India - In FMCG space, Nestle India is showing decent growth but not market beating. number.
Dr Lal Path - post acquisition, margin of Dr Lal Path has slipped and management is not showing any definative timeline for margin improvement.
After all these, how inactivity in portfolio can be justified?
Will share some thoughts in next post.
A job of a portfolio manager is to make sure the portfolio is aligned towards the sectors that are going through tailwinds.
Currently, wire and cable, hospital sector, banking and microfinance, consumption segment are the sweet spots where market is savouring tailwinds. As days follow night, liquidity chases these sectors. And we have seen, KEI Industries, Apollo hospital, South Indian Bank, Ujjiban small finance Bank, CCL, Varun Brevarage doing well in last 6-8 quarters.
Now, we can connect the dots with tailwind and return. The blueprint of momentum investing is borrowed from physics. You need forces to stop the momentum. Since these sectors are going up, it will continue to move upwards until some negative setup develop externally.
On the other hand, slow Compounding portfolio stocks are facing headwinds.
Asian Paints - landscape of Paint space is going to change. Will the Gorilla remains Gorilla, a big question.
Pidilite - Other competitors are now aggressively expanding products and distribution network
PI Industries - late monsoon this year, H1FY24 are going to be flat for agrochem companies.
HDFC Bank- merger will reduce profit margin, remaining concern for PE derating
Kotak Bank- While the banking sector is doing well, kotak bank in last two years clocked no return. Probably, the concern of Uday Kotak moving out of CEO chair is a concern.
Abbott India - the market share of top contributing drugs has slipped away. Company will depend on new launches for future growth
Nestle India - In FMCG space, Nestle India is showing decent growth but not market beating. number.
Dr Lal Path - post acquisition, margin of Dr Lal Path has slipped and management is not showing any definative timeline for margin improvement.
After all these, how inactivity in portfolio can be justified?
Will share some thoughts in next post.
Six Months of Inactivity - P2
When the bull market was on its full pace, Warren Buffett in Berkshire Hathaway Annual Meeting faced several heated comments and suggestions about his stock picks. It was the time when it is easiest to make money even if you pick stocks blindly in IT sectors..
Buffet strongly explained why he didn't participated in IT rally. You all know that.
In that annual meeting, an interesting question was asked about his view on overall market. We will come to his answer in a while. Before that, let's understand that if you ask this question to experts, everyone will have an outlook. Based on overall PE of Market, or debt situation, or interest rate, or election, or recently development. Even today, when you open CNBC, you will hear all the experts are predicting the market behaviour.
The partner of Warren, and the man with Horlicks glass on his eyes, Charlie Munger says....all the experts knows how the market will behave, but still most of them underperform. The retail investors must think about this. We don't predict the market.
Warren Buffett more clearly articulates that he wants a company which does well regardless of the market scenario. To him, market prediction is just like prediction of tide. It is very difficult to do precisely. We rather focus on the swimmers who will swim well in both high tide and low tide.
Probably, this is why Warren Buffett keeps doing well. He is never interested to win big in next bill run. Or he is going to lose less in next bear market. When the street is playing two games: market prediction and stock picks, Warren is playing one game.
We all read Warren Buffett and say that we are all long term investors. Then, we try to align our portfolio for upcoming bull market.
Probably, that's why Buffer says... investing is simple but not easy!
P.S. We are trying not to align our portfolio to take advantage of next bull market. And trying to focus on business that do well in all Market.
When the bull market was on its full pace, Warren Buffett in Berkshire Hathaway Annual Meeting faced several heated comments and suggestions about his stock picks. It was the time when it is easiest to make money even if you pick stocks blindly in IT sectors..
Buffet strongly explained why he didn't participated in IT rally. You all know that.
In that annual meeting, an interesting question was asked about his view on overall market. We will come to his answer in a while. Before that, let's understand that if you ask this question to experts, everyone will have an outlook. Based on overall PE of Market, or debt situation, or interest rate, or election, or recently development. Even today, when you open CNBC, you will hear all the experts are predicting the market behaviour.
The partner of Warren, and the man with Horlicks glass on his eyes, Charlie Munger says....all the experts knows how the market will behave, but still most of them underperform. The retail investors must think about this. We don't predict the market.
Warren Buffett more clearly articulates that he wants a company which does well regardless of the market scenario. To him, market prediction is just like prediction of tide. It is very difficult to do precisely. We rather focus on the swimmers who will swim well in both high tide and low tide.
Probably, this is why Warren Buffett keeps doing well. He is never interested to win big in next bill run. Or he is going to lose less in next bear market. When the street is playing two games: market prediction and stock picks, Warren is playing one game.
We all read Warren Buffett and say that we are all long term investors. Then, we try to align our portfolio for upcoming bull market.
Probably, that's why Buffer says... investing is simple but not easy!
P.S. We are trying not to align our portfolio to take advantage of next bull market. And trying to focus on business that do well in all Market.
Investing lessons from Darwin
I have recently read a book named, "What I Learned About Investing from Darwin" by Pulak Prasad. Indeed Very interesting thought experiments!
When you "buy and hold", you will miss a lot of winners. How to square off this fact?
A very different type of podcast which does not talk directly about investing.
Podcast will go live today at 6 PM
https://youtu.be/Bm7zy7q0CHU
I have recently read a book named, "What I Learned About Investing from Darwin" by Pulak Prasad. Indeed Very interesting thought experiments!
When you "buy and hold", you will miss a lot of winners. How to square off this fact?
A very different type of podcast which does not talk directly about investing.
Podcast will go live today at 6 PM
https://youtu.be/Bm7zy7q0CHU
YouTube
Darwin and Investing | What I learn about Investing from Darwin | Pulak Prasad
Darwinian Investing Insights
Darwin and Investing | What I learn about Investing from Darwin | Pulak Prasad
Keyword suggestions for the YouTube video "Darwin and Investing | What I Learn about Investing from Darwin | Pulak Prasad"
Investing Lessons from…
Darwin and Investing | What I learn about Investing from Darwin | Pulak Prasad
Keyword suggestions for the YouTube video "Darwin and Investing | What I Learn about Investing from Darwin | Pulak Prasad"
Investing Lessons from…
Boxing Ring
Asian paints is entering into adhesive space.
Pidilite is venturing into paint.
Who will win?
Listen from the management of Asian Paints during concall.
Video will go live at 6 PM today
https://youtu.be/PcU3-oNzloI
Asian paints is entering into adhesive space.
Pidilite is venturing into paint.
Who will win?
Listen from the management of Asian Paints during concall.
Video will go live at 6 PM today
https://youtu.be/PcU3-oNzloI
YouTube
Asian Paints Vs. Pidilite | The Ultimate Showdown | Concall Snippet Q1FY2024
In this video, the best question asked to Management of Asian Paints was discussed.
Welcome to our channel, where we delve into the world of home improvement and bring you the ultimate face-off between two giants of the industry: Asian Paints and Pidilite.…
Welcome to our channel, where we delve into the world of home improvement and bring you the ultimate face-off between two giants of the industry: Asian Paints and Pidilite.…
Abbott India
This company continues to improve its profit margin. Major reason: launch of new medicine in which profit margin is higher.
For Abbott India (also applicable for Nestle India), the question is not what to launch, but when to launch.
The retail investors who sold at the choas of Marcellus exiting this stock, sold at massive loss. There were many youtube videos which lectured the retail investors that MNC are bad because they launch new products through unlisted entity.
True.
Not just in business, in life also, always look for what to have, instead of what you don't have.
What you have if it's better than average, there is no point regretting.
Since our purchase, we sat on this position and let it compound at 21%.
Long-term investing is not about activity. The major task is now clearing out the noise. And focus on what you intended and what you are getting.
Hope this idea helps in your own investing journey.
Fun fact: People still think that our portfolio is a carbon copy of Marcellus' CCP
This company continues to improve its profit margin. Major reason: launch of new medicine in which profit margin is higher.
For Abbott India (also applicable for Nestle India), the question is not what to launch, but when to launch.
The retail investors who sold at the choas of Marcellus exiting this stock, sold at massive loss. There were many youtube videos which lectured the retail investors that MNC are bad because they launch new products through unlisted entity.
True.
Not just in business, in life also, always look for what to have, instead of what you don't have.
What you have if it's better than average, there is no point regretting.
Since our purchase, we sat on this position and let it compound at 21%.
Long-term investing is not about activity. The major task is now clearing out the noise. And focus on what you intended and what you are getting.
Hope this idea helps in your own investing journey.
Fun fact: People still think that our portfolio is a carbon copy of Marcellus' CCP
So true!
"A lot of financial debates are just people with different time horizons talking over each other"
Morgan Housel
"A lot of financial debates are just people with different time horizons talking over each other"
Morgan Housel
Nestle India
Revenue growth 15%
Profit growth 35%
Fifth consecutive quarters of double digit growth
Revenue growth 15%
Profit growth 35%
Fifth consecutive quarters of double digit growth
Dr Lal Path
Revenue growth 7.6%
Profit 43%
Profit margin improved but volume growth remained muted.
It simply indicates that pricing pressure in this space is easing out. When the volume growth kicks in, the market outlook will change.
Revenue growth 7.6%
Profit 43%
Profit margin improved but volume growth remained muted.
It simply indicates that pricing pressure in this space is easing out. When the volume growth kicks in, the market outlook will change.
Sudarshan Chemical
Revenue up by 9%
Profit jumped by 200%
Margin improved from 7.5 to 11.5% (YoY)
Quarterly dull result
Revenue dropped by 12%
Profit dropped by 28%
Note that historically, this company reports the weakest at first Q. So, it doesn't make sense to compare QoQ basis.
D/E ratio improving
This quarter 0.61, last Q 0.99, last year same Q. 1.04
Big capex is already done.
Profit is hit by depreciation.
Demand has collapsed after the capex. So, the company is sitting with an engine with no fuel.
Once fuelled, scenario may change drastically. However, it is a shallow cyclical company.
Disclaimer: Biased since invested @420.
Revenue up by 9%
Profit jumped by 200%
Margin improved from 7.5 to 11.5% (YoY)
Quarterly dull result
Revenue dropped by 12%
Profit dropped by 28%
Note that historically, this company reports the weakest at first Q. So, it doesn't make sense to compare QoQ basis.
D/E ratio improving
This quarter 0.61, last Q 0.99, last year same Q. 1.04
Big capex is already done.
Profit is hit by depreciation.
Demand has collapsed after the capex. So, the company is sitting with an engine with no fuel.
Once fuelled, scenario may change drastically. However, it is a shallow cyclical company.
Disclaimer: Biased since invested @420.
Aarti Industries
Aarti Industries is the big boy in the chemical class. The best way to look at the results of Aarti Industries over every five year basis. Over the long term, Aarti Industries will be thought of as a proxy of the chemical sector.
Results are bad as expected.
Revenue down by 12%
Profit down by 48%
Margin down by 3%
As communicated through video, I have strong reasons to dislike the company. However, Aarti Pharma Lab is looking very attractive at this price point.
No position, tracking the whole chemical sector carefully.
Aarti Industries is the big boy in the chemical class. The best way to look at the results of Aarti Industries over every five year basis. Over the long term, Aarti Industries will be thought of as a proxy of the chemical sector.
Results are bad as expected.
Revenue down by 12%
Profit down by 48%
Margin down by 3%
As communicated through video, I have strong reasons to dislike the company. However, Aarti Pharma Lab is looking very attractive at this price point.
No position, tracking the whole chemical sector carefully.