Introduction In this article, I want to focus on two types of businesses which are terrific businesses in their own right. Coca Cola and Sees Candies are the best examples of the two types of businesses which I would like to discuss. We can refer to these two businesses as standardized product led competitive advantage (or just product led competitive advantage) vs quality led competitive advantage. I chose Coca Cola and Sees Candies because Warren Buffett invested in both of them and doesn’t stop singing praises of these businesses till date. These businesses have made Warren Buffet insanely rich. While many people may not have heard of Sees Candies but…
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Max Ventures – A Unique Demerger Opportunity
I wrote the below article which analyses Max Ventures in November 2016. Introduction In my last article, I described my investment framework and the four areas of focus. The first two areas which I talked about were: Demerger situation New venture started by an established businessman The special quality about these two situations is that the stock price is artificially depressed for reasons other than the quality of the underlying business. I recently came across an opportunity which is a combination of these two situations – Max Ventures & Industries Limited (MVIL). MVIL was listed on stock exchanges (NSE and BSE) on 22nd June 2016 at a price of 45…
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My learnings in the Indian stock market
Introduction I have been investing for the past 3-4 years in Indian stock markets. I have read and learned a lot about investing over these years. When I started, I read indiscriminately whatever I could get my hands on including investment philosophy of reputed investors like Charlie Munger, Warren Buffet, Benjamin Graham, Ray Dalio, Howard Marks, Jeremy Grantham, Seth Klarman, Sanjay Bakshi, Peter Lynch, Philip Fisher, Bill Gross, Prem Watsa and so on. Of course I have been influenced by some of these investors more than others. Most influential for me have been Warren Buffet, Charlie Munger and Sanjay Bakshi. Through this indiscriminate reading and through my own experiences, I…
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Performance of select real estate developers in India
Introduction As we saw in part 1 of this article that we are at the cusp of a turnaround in the real estate sector in India. We are probably 2-3 years away from a broad-based recovery. If that is so, the next question is – what is the best way to take advantage of this turnaround. From an investment perspective, is there a better way of playing the real estate cycle than buying a house. The answer is yes, we can chose to invest in the stocks of select real estate developer(s). The stocks should provide a better return than the underlying real estate during the upturn in the cycle.…
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Current state of real estate sector in India
Introduction Real Estate industry globally is cyclical in nature and in India it is no different. The real estate cycle is tied to demand and supply of real estate and it is in turn closely tied to the cycles of construction activity and the economy in general. The dynamics of demand and supply of real estate are affected by couple of factors which accentuates its cyclical nature. Speculators / investors: if we all bought real estate only for our own consumption i.e. only for the purpose of living, the real estate cycle would be much more smooth. However, real estate is also an investment option to park our savings and…
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First blog post
This is the excerpt for your very first post.