Views on Life & on Equity Investing

Wonder, Wealth & Abundance

Biggest Market Cap

with 8 comments

Size of opportunity remains the easiest way to discover a potential corporation that can offer multifold returns.

Technology remains fascinating frontier but scattered with landmines of bankruptcies for capitalists. 

I wrote in 2012 (goo.gl/4onjiH) that a consumer Robotics company in future would be the largest market cap. Any such company for now remains elusive. Since then, on 13th of December 2013 Google snapped up Boston Dynamics, the creator of Big Dog.

http://en.wikipedia.org/wiki/Boston_Dynamics

http://www.theverge.com/2013/12/17/5219618/google-is-now-the-second-most-important-funding-source-for-robotics

ASIMO from Honda remains promising

IRobot has done reasonably on the bourses, however it is an easily imitable innovation

http://www.marketwatch.com/investing/stock/irbt

The old and decrepit part of human civilization remains the largest leaders. That says something about mind of humans too on an evolutionary ladder. XOM, Shell, CNPC, BP, Saudi Aramco remain the biggest companies in the world in terms of revenues. Old has not yet given way to the new.

 A legion of Nobel Laureates or otherwise have not and cannot understand a single and simplest particle of matter. The whole fabric of reality made up of same stuff remains equally elusive to understanding. There are a few things that we can understand, such as strength of alloy or bridge for aerodynamics for a plane or carrying heavy vehicles respectively. The exact ratio of  what we actually understand remains from 0.0000000000001% to 99.999999% depending on how foolish you are. I lean and bet my understanding is more towards scale with lots of Zeros rather than Nines.

To me this means, we are less smart that we think. Microsoft and Yahoo rejected to buy Google for couple of million dollars in 1998 when two of its young founders were doing the rounds in Silicon Valley. Since then company’s market cap has grown 20,000 times. (400 Billion USD)
Role of unknown / chance / luck / karma or any other theory is greater than we deem it to be.

Frugal Innovation

Uncertain of returns for capitalists but “Jugaad” or stop gap fix / Frugal Innovation richly deserves much funding to solve the problems of lagging humanity, with ingenuity on budget.

http://en.wikipedia.org/wiki/Frugal_innovation

http://www.scu.edu/engineering/frugal/

Folks like Manu Prakash Sharma, inventor of Foldscope, and other innovators at Gates Foundation truly deserve a Nobel Prize.

https://embed-ssl.ted.com/talks/manu_prakash_a_50_cent_microscope_that_folds_like_origami.html

http://www.foldscope.com

http://en.wikipedia.org/wiki/Foldscope
  
Rounding Off Financially

Old economy continues to accomplish wonders for investors in the 21st century. Bricks, Paint, Food, Drinks continues to make a lot of financial wealth for capitalists.

I have mentioned at least half a dozen times, the opportunity to invest with Crown Berger Paints Kenya since 2012-2013. Revenues are growing at 18% but profits at 25% and share price at 65% (104% in 2012, 78% in 2013 and 65% in 2014), needs a lot of PE re-rating from here for another five years.

http://multibaggersindia.blogspot.com/2013/10/long-term-overseas-investing-idea.html

The year went by was equally spectacular, expecting an encore in the next three years or maybe a slightly subdued 40% cagr. Crown is a leader but not monopoly

Will post a couple more monopoly investments in Africa shortly over next few months that typically check all boxes on Phil Fischer and Munger checklists.

Disclosure: Invested. Views are personal notions and do not represent any organisation or company. I am not an investment adviser. Investment in stock market can (and many a times do) result in loss of principal capital.


Written by amitdipsite

September 27, 2014 at 12:31 am

Posted in Uncategorized

8 Responses

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  1. Hi Amit,
    Can you please let me know similar business in Srilanka, Bangladesh so that I can invest there. I'm currently planning to invest in so called 'FrontierMarket' through NYSE listed ETFs as opening individual trading account in all of the countries is difficult.
    Thanks
    Prasad

    Prasad

    September 27, 2014 at 10:16 am

  2. Dear Prasad

    Please go through previous 2 years of posts. You will find good ideas that I previously mentioned.

    All the best

    Amit Arora

    September 27, 2014 at 11:36 am

  3. This is how Capitalists think, backflips during plague, if company they own are selling plague medicine.

    “The golden revenues were from publishing foreclosures notices. We made a lot of money for a while. It was sort of like being an undertaker during the Black Death. For two or three years it was a wonderful business and the population of Europe declined by 40 percent. That’s what we went through.”

    http://www.forbes.com/sites/phildemuth/2014/09/19/charlie-munger-and-the-2014-daily-journal-annual-meeting-a-fans-notes/

    Amit Arora

    September 28, 2014 at 7:47 am

  4. On money management business:

    – Very long term the way to go
    – Patient money
    – Absence of competition with others
    – Absence of envy

    http://www.forbes.com/sites/phildemuth/2014/09/25/charlie-munger-and-the-2014-daily-journal-annual-meeting-part-two

    “If you’re shrewd enough to choose well, three holdings – any one of which would support your family in perpetuity — is enough security. What difference does it make if somebody else in some year goes up 10% and you go down 5%, when you’ve got 1000 times more than you need anyway? The people who make these crazy decisions don’t actually have envy: what they have is clients who will fire them if they don’t get the same results as everybody else. That is a crazy system. Everybody gets on the same merry-go-round. I never had any interest. As I sit here, all my securities are making new highs every day. Am I doing it wrong?”

    Amit Arora

    September 28, 2014 at 8:19 am

  5. Munger says 3, Buffett 10-20, Lynch bought 1000-1400

    Munger nearly did 20% for 50 years CAGR, Buffett 15% CAGR for 55 years (7-8% through insurance float), Lynch 30% for 15 years.

    Great video, a must read book (One Up on Wall Street – Peter Lynch)

    Amit Arora

    September 28, 2014 at 9:46 am

  6. Unilever Nepal was 5000 Rs 4 years back, bought for 9000 Rs last year. Current Market Price 15,000 Rs.

    Got dividend of 860 Rs per share, 6% CMP yield, 10% yield if one invested last year

    http://www.sharesansar.com/viewnews.php?id=22516&cat=news

    Amit Arora

    September 29, 2014 at 12:37 am

  7. Wim Plast a 26 bagger now since June 2009

    http://www.theequitydesk.com/forum/forum_posts.asp?TID=2270

    bought right still holding tight,
    decision might be right as it may continue its flight
    perchance even shine in Big Funds limelight
    who caught the rabbit in headlight

    Amit Arora

    September 30, 2014 at 6:25 am


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