Views on Life & on Equity Investing

Wonder, Wealth & Abundance

Boring business, dazzling performance

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I wrote about the Supply Network (ASX:SNL) four months back, which I held in only few accounts because of low growth of 10%-12% here: https://lifeandequities.wordpress.com/2018/02/10/when-bad-operating-metrics-are-a-good-thing/

The weakness of the company is the strength of its business model. The weakness is the vast variety of trucks operating in ANZ and the business is to sell after market parts, consequently the company has to hold on to a large number of spare parts. Inventories are more than the companies entire equity + reserves. ROE is smashing 25%.

The company differentiates by holding high quality components and keeps the parts readily available locally, rather than ordering just in time, this investment in the parts/inventories are the bane of the competition. Quarter million dollar truck earning several thousand dollars a day, in need of a 1000$ part is unlikely to compromise on quality or an extra day of wait.

The industry for spare parts is multi billion AUD in Australia/NZ, SNL has only a fragment of this share, ~100 million AUD revenues but focuses only on quality parts for all models of trucks/buses. Somehow this combination of centralised procurement and decentralised management and decision making and all the variety of parts imported from 100s of locations available readily locally on site has worked out for SNL. Hard to find a more boring, humdrum and invisible business than this. The chart says, otherwise, 20X in 10 years.

http://www.supplynetwork.com.au/

snl

Written by amitdipsite

June 11, 2018 at 10:26 am

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Hippies of 1970s

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Who would invest today if the cover photo of Senior Management looked like below?

Like I said 150 years back equivalent to todays   billion dollar company did not a have 10 page prospectus and today a 5 million dollar IPO has a 500 page prospectus, the art of pulling wool has been mastered, fine tuned and polished. 

Written by amitdipsite

June 10, 2018 at 7:28 am

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Jokes

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A Buddhist walks up to a hotdog stand and says, “Make me one with everything.”

I’m addicted to brake fluid, but I can stop whenever I want.

Atheism is a non-prophet organization.

My granddad has the heart of a lion and a lifetime ban from the New York Zoo.

They all laughed when I said I wanted to be a comedian. Well, they’re not laughing now.

I was wondering, why does a frisbee appear larger the closer it gets… then it hit me.

The most successful investor was Noah. He floated stock, while everything around him went into liquidation. 

A long term investment is a short term investment that failed.

Q: When does a person decide to become a stockbroker?

A: When he realizes he doesn’t have the charisma to succeed as an undertaker.

A chemist, an engineer and an economist

A chemist, an engineer and an economist are stranded on a deserted island. They carry with them some canned food but have no ordinary means of opening the cans. The chemist suggests gathering some wood and starting a fire and then holding the cans over the heat, counting on the expanding contents to burst open the cans. The engineer thinks it would be better to try smashing the cans open with some of the rocks lying around. The economist begins, “Assume we had a can opener…”

God’s Time And Money

A preacher went into his church and he was praying to God. While he was praying, he asked God, “How long is 10 million years to you?” God replied, “1 second.” The next day the preacher asked God, “God, how much is 10 million dollars to you?” And God replied, “A penny.” Then finally the next day the preacher asked God, “God, can I have one of your pennies?” And God replied, “Just wait a sec.”

There was an investor

There was an investor who had three girlfriends, but he didn’t know which one to marry. So he decided to give each one $5000 and see how each of them spends it. The first one goes out and gets a total make over with the money. She gets new clothes, a new hairdo, manicure, pedicure, the works, and tells the investor, “I spent the money so I could look pretty for you because I love you so much.” The second one went out and bought new golf clubs, a CD player, a television, and a stereo and gives them to the man. She says, “I bought these gifts for you with the money because I love you so much.” The third one takes the $5000 and invests it in the stock market, doubles her investment, returns the $5000 to the man and reinvests the rest. She says, “I am investing the rest of the money for our future because I love you so much.” The man thought long and hard about how each of the women spent the money, and then decided. QUESTION: Who did the investor marry? ANSWER: The one with the biggest boobs. 

Written by amitdipsite

June 9, 2018 at 12:23 am

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Lag gayi

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Well that lag gayi / screwed is for my India  small and micro cap portfolio valuation. Over the past five years I have tried to invest as much as possible outside of India because of my belief that for a 100% fully invested long only equity investor one trick pony like me (for whom shorts and options are not an option) the best I can do is to have an un-correlated long only portfolio. Now my India / Overseas portfolio is about 55 % / 45% split.

So far the results are not disappointing in terms of correlation, when I make money in India I lose overseas, and vice versa, so at the end of every financial year I never make money. The good part is that I don’t have tax to pay 🙂

I kid.

The results in my personal India portfolio is -32% drop in India and on the Out of India portfolio is up 8% since the peak in 2017.

So, for a retired, long only investor, who aims to A) Not go cash B) Not have options or other hedging C) Is 100% Long only, its recommended to invest in at-least 3 countries if not more as that does give you buying power when the tide is out in one market.  I wrote slightly in more detail on multi-country investing here https://lifeandequities.wordpress.com/2016/09/09/multi-country-frontier-investing/

Once again, the name of the game is not to get rich fastest, or get most fans, or get most likes or most respect, but to be a hardy cockroach be resiliently rich in all times and climes and stay in the game longest.

Written by amitdipsite

June 6, 2018 at 6:24 am

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Virgin territory

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Peter Lynch, “When her Highness sells shares for moral reasons to share wealth with the poor, lap up”.

According to the 2014/15 national budget speech, there are 40,000 registered shareholders in Uganda, a fraction of the country’s estimated 40m population.
USE is carrying out investor education to attract more Ugandans to buy, sell or even raise money through the bourse.

Uganda Government seeks mandatory sell of shares for telecoms.

Imitating Tanzania

No listed telecom: Uganda has no telecom, which are some of the country’s largest companies, listed on the stock exchange.

In Tanzania, the country’s parliament passed the Finance Bill 2016 which makes it mandatory for all telecoms operating in the country to list on the stock exchange. Uganda has three privately-owned large telecoms including MTN, Airtel and Africell.

The Ministry of Finance will this week table before Cabinet a government policy paper that seeks to have all telecoms listed on the Uganda Securities Exchange, according to Finance minister Matia Kasaija.

In 2013, President Museveni said Ugandans must partly own (in terms of shares) large companies such as telecoms, banks and insurance companies, among others that make a lot of money.

However, no policy has been developed since the President’s 2013 pronouncement.
Source:

http://www.newvision.co.ug

http://www.monitor.co.ug/Business/Government-seek-mandatory-sell-shares-telecoms/688322-4593982-wndg8r/index.html

Written by amitdipsite

June 4, 2018 at 7:39 pm

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Common thread

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I have found that humans who personally experienced the Sole Ultimate Reality  from whatever path they practiced, ended up in a state of bliss and unconditional love as they were in constant state of rapture and ecstasy.

Modern media depicts primarily one kind of love at least in the movies in east and west, i.e. romantic and lustful love. English is somewhat shallower language for expressing love, read that there are 96 words for love in Sanskrit and 80 words in Persian for love.

Sufi philosophy is exactly the same as the philosophy of  India’s hoary Vedas and the teaching of Jesus the Christ.

Death before physical death

This is the key.

Yoga derived from a Sanskrit word Yuj, means join, Yoga means merging one’s limited consciousness into the infinite One. Same teachings are coached in the Sufi heritage.

In a very simplified manner as per Sufi tradition, first stage of his journey is called ubudiyah or “service”. The second stage is ishq or “love.” He loves God. The divine love filling his heart, it expels all other loves and brings him to the third stage, Zuhd or “seclusion.” He occupies himself exclusively with contemplation of God and his attributes, and comes to the fourth state, Marifah or “knowledge.”

When settled he moves to the fifth stage, wajd or “ecstasy” he now receives revelations and soon reaches the sixth stage, that of hagigah or “truth” and proceeds to the next state, that of “wasl” or “union with God.”

Finally, the lover of God dies in the mortal frame as if his body is dead in suspended animation, this is called fana with heartbeat and breathing stopped momentarily.  Once the seeker has sufficiently interiorised the consciousness by scientific techniques of withdrawal of life force from the senses, the body dies and one wakes up to another level in comparison to which the normal waking consciousness feels as a murky dim dream.

Yogis who practices pranayama experience a similar bodily death in the state of samadhi.

St. Paul practiced a similar technique every day for he said, “I protest by our rejoicing in the Christ I die daily”. Cornithians 15:31

Misunderstanding

Bollywood movies have misunderstood this esoteric meaning and have instead attributed these stages of love to mortal human male and female romance, creating emotional content for blinded audience attracted to such a melodrama.

One of the bollywood movies Dil Se, described these seven stages as Dilkashi (attraction), Uns (infatuation), Ishq (love),  Akidat (trust/reverence), Ibadat (worship),  Junoon (passion/madness) followed by Maut (death).

This force can be used as a tool for our spiritual upliftment. Sufi traditions choose to focus their Ishq on God or Allah.

You cannot overthink

Ishq Nazuk-Mizaj Hai Behad

Aql Ka Bojh Utha Nahin Sakta

— Akbar Allahabadi

Translated to: Love has a delicate disposition , It cannot bear the burden of logic

Sufi are mystics who believe that a direct, personal experience of God can be achieved through meditation and capable of manifesting Universal Love. As Ibn Arabi writes from personal experience:

My heart has become capable of every form: it is a pasture for gazelles and a convent for Christians, and a temple for idols and the pilgrims Ka`ba and the tables of the Torah, and the book of the Koran. I follow the religion of Love: whatever way Love’s camels take, that is my religion and faith. – Ibn Arabi

Because it comes on its own in one’s evolutionary development, we can refer to  Ghalib’s quote:

Ishq Par Zor Nahin, Hai Ye Wo Aatish ‘Ghalib’

Jo Lagaye Na Lage Aur Bujhaye Na Bujhe

— Mirza Ghalib

Translated to:

Love is a force beyond all control, a fire, O Ghalib 

That can neither be ignited nor extinguished at will

Sources: theosociety.org, thecoffeelicious.com, upliftconnect.com

 

 

 

Written by amitdipsite

June 2, 2018 at 5:13 am

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4 Ads 4 Audience – Choose your ignorance

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Some people are dying to have a baby, whereas some consider this a crazy situation and eager for an abortion. Some want to learn English (psychological injection in India by the Britishers that its a superior language) while others struggling to teach Hindi / let alone Sanskrit to their kids. 

Some insane about getting fairer skin and others maniac about getting a brown complexion. Both are shallow obviously. 
Where you are born and the environment in which you live can drive you more in life or even more so than your own willpower than you can ever imagine. 

East or West, Ignorance is 50:50

LEARN English – For Indians

LEARN HINDI – For NRIs

GET FAIR – For Indians

Get Brown and bronzed – Caucasians

Written by amitdipsite

June 1, 2018 at 9:14 pm

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