Alpha Ideas

What I learnt from Raamdeo Agrawal

Post author By Raoji
Post date May 2, 2017
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Raamdeo Agrawal is the Chairman of Motilal Asset Management Company and a well known investor.

What I learnt from him: Great investors speak to other great investors about their investments

We did buy 5% of initially of Berkshire Hathaway initially .

The amount was small but still it was $10-15 million.

I spent one full day researching Berkshire Hathaway as an investment then I changed my role and I actually did the research

I went and met a guy who is one of the largest holders with $3-$4 billion worth of Berkshire Hathaway stocks.

His job is only to take care of Berkshire Hathaway 24×7.

Saturday, Sunday you will get appointment to talk to him.

I went and met with him with a help of a friend and then we discussed and we figured out that best possible growth rates cannot be more than 8-10% if you are lucky.

Then I said the gap is too much for me and so I must not put my money and then we withdraw that.

Chart

Chart: Desi Chamatkar

The rise & rise of Patanjali

Observations

A tale of two P/E ratios

Hat tip: Kapil Tandon

The data of the Nifty Midcap 50 below reminds me of Charles Dicken’s quote from ‘A Tale of Two Cities’ :

It was the best of times, it was the worst of times, it was the age of wisdom, it was the age of foolishness, it was the epoch of belief, it was the epoch of incredulity, it was the season of Light, it was the season of Darkness, it was the spring of hope, it was the winter of despair, we had everything before us, we had nothing before us, we were all going direct to Heaven, we were all going direct the other way – in short, the period was so far like the present period, that some of its noisiest authorities insisted on its being received, for good or for evil, in the superlative degree of comparison only.

In Jan 2008