"When an industry's underlying economics are crumbling, talented management may slow the rate of decline. Eventually, though, eroding fundamentals will overwhelm managerial brilliance."-Warren Buffett

@unseenvalue #Screened few businesses trading at single digit MCap/CFO.

I made a mistake in above list.
Apologies ! It is accidental discovery of businesses trading at single digit MCap / Cash End of Last Year.

🌟Here is businesses #screened for MCap/CFO.

Successful investing is hard work because it means disciplining your mind to do the opposite of human nature. Buying during a panic, selling during euphoria, and holding on when you are bored and crave action.

Aswath Damodaran: “We have all these people telling you to buy a quality company. That's really bad advice. If you buy a quality company that everybody else recognizes as a quality company, you're going to pay through the roof. Good companies can be bad investments….”

When a stock is trading around 15-20x sales - ask why would an accident not happen? What could be the valuations damage in that case?

@Bapu__Mishra hardly. 30-40 stocks is fine

When a consumer company advertises only on biz channels and not on GEC and mainstream channels, you should be alert about the management's intentions.

#investing

Journey from deep-hatred (नफ़रत) to deep-love (इश्क़) creates massive valuations re-rating from below 1x sales and 1x book value to anything from 5x to 20x sales and a multiple of book value.

Remember in March when all the headlines/'experts' were saying that the 10Y was going to hit 2% very soon, and it was going to cause this and that to happen, etc.?

No-one actually knows what interest rates or the economy is going to do & people are just terrible at predicting it

Howard Marks strongly believes that investing based on macro predictions is a bad idea (macro predictions are more often wrong than not): “I don’t believe in macro forecasts”, here's an extract from his memo earlier this year as well:

Infra vs Compounder. Get poor fast vs Get rich slowly (unless you buy at the bottom and "luckily" survive the bankruptcy/mortality risk to ride the subsequent fast recovery and then turn "lucky" again to exit in good times resisting your irresistible greed).

Thread Threadexplaining #PE Ratio & #PEG Ratio & its use in #FundamentalAnalysis

(Must read for #FA learners)

🙏Like & RT to spread learning with all🙏

Views Welcome👉@dmuthuk @Vivek_Investor @datta_arvind @caniravkaria @FI_InvestIndia

#FundamentalAnalysis #StockMarket

1⃣

Price to Earnings (#PE) ratio, also known as price multiple or earnings multiple is the ratio obtained by dividing the current share price by earnings per share (#EPS).

#StockMarket #Investing #FundamentalAnalysis

2⃣

P/E ratio is a reflection of the market's opinion of the earnings capacity & future business prospects of a company.

Companies which enjoy high investor confidence & have a higher market standing usually command high P/E ratio.

#StockMarket #Investing #FundamentalAnalysis

3⃣

On the face, it would seem that companies with low P/E ratios would offer most attractive investment opportunities. This is not always true.

Companies with high current earnings but dim future prospects often have low P/E ratio.

#StockMarket #Investing #FundamentalAnalysis

4⃣

As an #investor your primary concern is with future prospects of a company & not so much with its present performance.

This is why companies with low current earnings but bright future prospects usually command high P/E ratio.

#StockMarket #Investing #FundamentalAnalysis

GAIL: Expect marketing biz to do well this yr considering the prices are higher, crude to remain above $60/bbl

Have submitted 2 pipelines to MoPNG for asset monetisation approval from cabinet

LNG import target at 130 cargoes of which 40-45 will come from US

GAIL: Will look at the renewable portfolio of 400 MW under SECI projects with EPC partner BHEL

GAIL plans to venture into JV for 1000 liter per day ethanol-blended production

GAIL to issue expression of interest for ethanol-blended production project within 2 months

@niteen_india He could calc his hotel valuation in following way ...

25000 rooms @ Rs 2 crore per room = Rs 50000 cr
400 restaurants @ Rs 5 /10 crore = Rs 3000 crores

+ Banquet halls + Gym + Store space + commission business

Puneet Chhatwal, MD & CEO Indian Hotels, in the analyst conference call:
"Hotel is a cyclical business. It should not be bought at the top of the cycle and not be sold at the bottom of the cycle."

<> 🙂

The best marketing affects a human's behavior.

It leverages psychology to impact people's perceptions and decisions.

Understand it and you'll influence consumer's buying decisions.

Use these 12 psychology tips to influence your audience 🧵

1. Theory of reciprocity

As humans, we’re more likely to do something for someone after they’ve done something for us.

When you consistently provide value to your audience -- they’re more likely to reciprocate by supporting you.

This builds brand advocates.

2. Too many choices

Too many choices means too much confusion.

This affects a consumer's ability to make a decision and demotivates them from doing so.

Reduce your options.

Increase your conversion rate.

3. Decoy Effect

Perspective influences decisions.

With the decoy effect, you alter the consumer’s perspective by making the highest ticket item look like a deal.

Ex:

Small Popcorn: $3
Medium Popcorn: $6.50
Large Popcorn: $7

The large feels like a great deal.

4. The Baader-Meinhof Phenomenon

This phenomenon is when you see something for the first time then feel like you start seeing it everywhere.

Once you become aware of something you start to look for it unconsciously.

This then convinces you that it really is everywhere.

The sector rotation has been so fast in this bull market...

There has been no one clear sectoral leader..

Suddenly Pharma stocks run, then PSUs, then IT comes up, Commodities, Chemicals.. Everyone is having their day in the sun..

Now All of a sudden Power stocks are zooming

Previous Bull markets had few clear leaders - Infra, Real Estate in 2007 or Financials after Demon, IT, Media in 2000s, Capex, Commodities after that

Piper Sandler's Spring 21 US teen survey:

"Snapchat is the favorite social media platform (31% share) followed by TikTok (30%) & Instagram (24%, down 700 bps Y/Y)"

Fall 20 survey below. Surprised by the $PINS gains. $TWTR similar aging to $FB. TikTok numbers are 🍌

Debt funds are generally good but still you need to understand this fine difference:

If you lend to banks, the risk is on banks.

If you lend to mutual funds, the risk is on you.

Real Estate Investment Trusts (REITs) Simplified.

A product that provides a fixed income that is better than FD +an upside like equity.

A Thread 🧵👇

1/ REITs are a vehicle to invest in income-producing real estate properties, managed by professionals.

2/ In India, we have REITs primarily focused on commercial real estate properties having 7-9% rental yields.

In listed REITs, Most of the completed properties are pre-leased to big companies.

Why no residential? As yields of 1-3% make them unattractive to investors.

3/ How do you get the benefit of such yield?

REITs have to distribute at least 90% of their taxable income to their shareholders.

All 3 listed REITs trade at 6-7% dividend yield (which is also tax-free)

4/ Moreover, 80% of REITs total value must come from completed & income-generating properties + it must avoid speculative land acquisitions.

What about debt then? There's a restriction there too.
Not more than 49% of the total equity.

@ravidharamshi77 @sameervq @VQIndia All the best