Views on Life & on Equity Investing

Wonder, Wealth & Abundance

Value Investing with the Masters – by Kirk Kazanjian & Interview with America’s top Traders – by Jack D. Schwager

with 10 comments

Value Investing with the Masters

Comprises twenty interviews with market beating fund managers. I found this book quite humdrum. A few underline worthy statements, though they come up in other books as well.

– 90% of gains in equities are made in 2% of the time duration, stay the course and keep plugging

– Stocks that fall down have to be rubber balls not eggs !

– Depreciation policy of British and Copenhagen airports writes them off at 100 vs 20 years, valuation measurement should vary, and airport after all is an airport !

– Stock picking is like farming, seeds (money) have to be sown, not all seeds grow, suitable climate (sentiments) matters, seasons change but not as regularly as in farming and can last years.

– Graham later in his interview with congress replied in response to valuation of company as, future earnings of the company and to an extent current assets. Fan boys who keep pressing for current assets metric miss out on opportunities. Same way Buffett aficionados presume its sinful to invest in technology, just because technology is not in Buffett’s circle of competence.

Market Wizards

Read a couple of chapters, excellent insights into minds of successful traders. Found this way more impressive. Some juice from the ripened fruit:

– With all due respect to Buffett’s statement, trading / investing is not about investing in great companies with durable moats but about profiting from inefficiently priced stocks. One could invest in great business yet make ordinary returns.

– From a psychiatrist who helped suicidal patients and later athletes and fund managers – it is very difficult to win an Olympic Gold medal or be the best fund manager, the distinctive trait of winner is that they decide and take a resolve that they would win
 
– Don’t think of making money, first worry about not losing money

– Any investment approach that is heavily reliant on accurate forecasting for several years ahead or involves the purchase of high-expectation stocks is inherently risky.

– more to read..

Written by amitdipsite

July 9, 2011 at 4:21 pm

Posted in Uncategorized

10 Responses

Subscribe to comments with RSS.

  1. Hi Amit,

    Your call on Money Matters is rocking. Thank you on behalf of all readers who are invested in it including myself.

    Regards,

    Amar

    July 11, 2011 at 7:12 am

  2. Thanks yourself actually as it was purely your conviction and you are rewarded for that. Someone may have bet 1% of portfolio, another person 20%. I was merely putting out my opinion.

    Regards

    Amit Arora

    July 11, 2011 at 4:56 pm

  3. I want to bring your attention towards VA Tech Wabag. Its a only MNC from Water Sector listed on exchange. Management has the vision to make 6000cr company in next 5-6 years.

    Whats your view on this company?
    ——————————————–

    Industry itself has great future, not very sure about Wabag's growth rate but there are 3-4 MNCs bigger than them already present in India. There may be room for enough players to grow. Not my high conviction area.

    Regards

    Amit Arora

    July 11, 2011 at 6:29 pm

  4. Hi Amit ,

    This is in regards to Photoquip.There is speculation that promoters are buying shares and thats why stock is showing no positive upside for last couple of weeks and is in range of 41-43. Is this just a speculation or is there any other reason considering the fact that Q4 results are Ok and market fairly doing well.
    Thanks
    Umang

    Thanks

    umang

    July 12, 2011 at 10:43 am

  5. Hi Amit,

    Thanks for your views.

    Regarding Wimplast I read optimistic views from your blog.

    Do you think they still hold bright future? My concern is that I am sceptical on volume growth of plastic furniture because rising income family wont like or keen to buy plastic furnitures.

    How would you counter-argument my concern?

    Amit

    July 12, 2011 at 3:27 pm

  6. Money Matters : http://www.moneylife.in/article/mystery-behind-the-sudden-rise-of-money-matters-stock/18002.html

    Can do between 30-40 Rs TTM EPS in next 24 months.

    Photoquip: People at large do no believe in future of still photography

    Wim Plast: Group is very very rich in cash, ethical, dividend paying, history of building successful company. Furniture can be used outdoors, balcony or functions.

    Amit Arora

    July 12, 2011 at 4:34 pm

  7. Hi Amit,

    If this is the case, you cannot ignore IFB Industries as it is a turn around story over a few years and now they hold majority of share in front loading washing machine and good hold in micro-oven too.

    Does this ignite your conviction on this stock?

    Amit

    July 12, 2011 at 5:47 pm

  8. hi Amit,

    any updates from cravatex's AGM..??
    i would request some-one to post the updates from the AGM.

    sandeep maddali

    July 15, 2011 at 5:25 pm

  9. Selvan has posted this:

    selvan said…

    From the AGM of cravatex:

    1.UK subsidiary M/s. BB (UK) Ltd will do a business of around 40 crore this year.
    2. Middle east & north africa sublicense for fila is with cravatex. Mr. Batra didn't explain the prospects in these regions.
    3.There will be a uptick in borrwing this year as working capital is around 30% of topline.
    4.Didn't give any figure regarding growth in sales.
    5.Plans to open 5 nos company operated stores this year at a cost of 4.5 crores.
    6.One shareholder complained vehemently that Mr. Batra's salary is very low.
    7.Another old lady, who had nothing better to do, sang a poem in praise of Mr. Batra.

    Amit Arora

    July 16, 2011 at 3:21 am

  10. Amit has left a new comment on your post “A Random Walk Down Wall Street – Burton Malkiel”:

    An Observation:

    Somedays back I purchased proline Tshirt and fila shoes from proline store in Inorbit Hyderabad through my credit card.
    In the credit card statement I found that the amount was actually credited to Cravatex ltd.
    This means revenues from these stores are accounted to Cravatex.

    Correct me If my assumption is correct or not.

    Amit Arora

    July 16, 2011 at 3:22 am


Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: