Leading Nowhere
DIY investing in India listed companies, with focus on corporate governance. Mostly talking common sense and looking for value.
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Career Point Ltd (CPL) demerging its edu-finance business into separate listedco. This business is majority financed from CPL earnings and has lent onward to promoter entities that...
1/ On the way up, smallcaps have tremendous liquidity. Once dry, just a few people looking to offload a few lakh shares will send prices on downward spiral for months. Closer to co...
@akshil_mehta Margin of safety is always approximate. In third tweet I mention pre-pandemic levels so that's a rough benchmark because broadly most companies i was interested in w...
@indianwhale No fixed criteria, it depends on context. In microcaps I never want to pay more than 8-10x normalized earnings. In larger more well discovered entities I will wait for...
@tapak7 Also, seeing some commentary in concalls that some companies have loaded up larger RM/inventory than normal in Q4 due to fear of supply shortage or further hike. Might not...
1/ A good way to contextualize PE ratio, think it as earnings yield: 5x = 20% 10x = 10% 20x = 5% 30x = 3.3% 50x = 2% As you go down this scale, you're paying increasingly more...
Most scenarios, vertically-integrated = better margins, as long as cost of key inputs becomes small fraction of costs eventually. If KI are 50-60% cost at final stage w/ sharp pr...
@AnandOjhaG @VVVStockAnalyst @Disciplined_Inv It only means that the gain will likely not be repeated unless they stock up more inventory AND prices go up again. On the flipside, i...
@caswapnilkabra @abhymurarka This is literally the most common way to create wealth in the stock markets. By its very nature it is a non-consensus based activity. If there is too m...
(Thread) Some thoughts on investing in listed family-owned businesses. Cobbled together from several years of investing in and observing such companies, and also some profession...
@KirubhasWasHere I have bits of writing all jumbled together - on our earlier conversation on the first thread, I realized I could copy paste a bit of it and things would make more...
The 6 buckets of information I look at when analysing a company for the first time. Most of these tend to be small companies with little coverage but with larger competitors. A...