Source: CA Amit Jain
Organizing chess tournaments can take you far…
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Pre IPO :Bombay Stock Exchange
Bombay Stock Exchange is India’s oldest and fastest Stock Exchange.
It has filed its DRHP for the IPO and is expected to list this month
A very limited quantity of its shares are on offer for sale.
For those interested,please email me at Alpha Ideas
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Chart:How do investors buy MFs?
Source: Manoj Nagpal
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Linkfest: January 03,2017
Some stuff I am reading today morning:
BHIM can give PayTM a run for its money (Money Control)
Corporate Governance issues at Infosys (BL)
Don’t pay service charge if you wish (FE)
Dangal creates box office history (BS)
SBI sees loan growth jumping (Bloomberg)
SREI Finance 9.75% NCDs (One Mint)
Paradox for long term investors (Prof Bakshi)
In 2016,I learned that… (TRB)
Lessons from a legendary short seller (CFA Institute)
Melbourne Landlord installs coin operated toilet (Climateer)
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Book Review:The Unusual Billionaires
Saurabh Mukherjea of Ambit Capital is well known for his Coffee Can portfolios.
The “Coffee Can” portfolio is a portfolio is a portfolio of stocks that you buy and keep for ten years.
In his book, The Unusual Billionaires, he expands on this concept in detail.
Stocks that make it to the Coffee Can portfolio have to meet only 2 criteria for every year in the last 10 years:
1.Revenue Growth > 10%
2. ROCE > 15%
Using examples and detailed case studies of 7 companies (Asian Paints,Berger Paints,Marico,Page Industries,Astral Poly,HDFC Bank,Axis Bank) , he makes a persuasive case why such a portfolio will work in the Indian context.
There is also a checklist to evaluate a business.
One flaw in the book I found was the author paid no attention to price.A business may be great but does it make sense to buy it at nose-bleed valuations?
There is one particular excerpt in the book which I found particularly interesting:
“While there are other successful modes of investing in the equity market,their ability to deliver sustained outperformance over long periods of time (say 3 years or more) is unproven in the Indian context.
In more mature markets,which have much greater liquidity and greater transparency,short-term trading have been practiced over long periods of time by legendary investors such as George Soros,Juilan Robertson and Michael Steinhardt.
However,given that India is the least liquid amongst the world’s fifteen largest equity markets,the only viable option open to those who want to deploy large sums of capital successfully is long term investing.”
A worthwhile read for those interested in the Indian Equity Markets.