India is #1 EM


What is the role of an Analyst?

Source: Motley Fool

I think too often, young analysts believe that the goal of an analyst is to demonstrate how much they know about a company and build a perfect earnings model. I don’t think I’ve ever seen an analyst model their way to a great stock idea!

I view the goal of the analyst as developing conviction that the consensus is wrong about something important. Then their job is to communicate why they believe they are correct and the consensus is wrong and to compute the valuation impact. Once we own a stock, their job is to actively monitor new information to assess if their view or the consensus view is coming to fruition.

There are a lot of important areas the consensus can be wrong: management quality, business quality, long-term potential differing from current results, valuable non-earning assets, and so on. To make excess profits, you need to hold a nonconsensus view and be right.

-Bill Nygren, Oakmark Funds


Linkfest: 06 December, 2022

Some stuff I am reading today morning:

Unlicensed advisors are managing hundred of crores (MC)

Adani Green now world’s largest wind-solar hybrid developer (Fortune)

The Mahindra growth story is getting started (Forbes)

EV startups make auto parts manufacturers see red (FE)

A global plastics treaty is coming (BS)

Yesterday’s selloff should be a wake up call for investors (Market Watch)

The key to making better market predictions (Bob Pisani)

How to identify & value quality businesses (Bill Nygren)

LVMH and the Luxury strategy (Punch Card Investor)

On the Twitter Buyout (Last Bear Standing)


Linkfest: 05 December, 2022

Some stuff I am reading today morning:

Foreign investors increase allocation to India (FE)

Santa rally for railway stocks (MC)

Interview with HDFC Bank CFO S Vaidyanathan (BT)

Stock Talk: Patanjali Foods (Dolly)

How to get lucky (Sahil Bloom)

A bear market in everything (Novel Investor)

Wall Street’s 2023 outlook for stocks (Sam Ro)

Russia refuses to accept EU’s oil price cap (BS)

China’s Zero Covid Policy is dead (ACS)

How Billionaire Michael Goguen got conned (Intelligencer)


Top Clicks on Alpha Ideas this Week

Here are the most clicked items on Alpha Ideas this week:

India’s impending economic boom (Morgan Stanley)

Getting Wealthy Vs Staying Wealthy (Morgan Housel)

Saurabh Mukherjea’s Marcellus funds underperform badly (Mint)

Poddar: Poda to HDFC (AI)

Credit Profile of InvITs-REITs (AI)

India Cement’s Journey continues (BI)

How to hold a stock for 20+ years (Joel Tillinghast)

Alcohol : A Trillion $ market (AI)

Mercator: Aaj Jaane Ki Zid Na Karo (AI)

Five Star: Transformational Journey (AI)