One key learning from @VijayKedia1 Sir:

Many of the cos he invested in: vaibhav global, Tejas networks, sudarshan chemicals he was tracking for 4-5 years before he decided to invest. Wants to pull the trigger near the bottom of biz cycle

Patience

More from Sahil Sharma

A lot of people ask: how do you find companies to invest in? very good question.

How did you find RACL, Pix?

Creating this ad-hoc thread to share my process.

if you like it, please RT to benefit maximum investors. 🙏

1.
https://t.co/2bvvRSBScr
Imagine what you want in a company, codify it in the form of filters, create a screen. Example below:

"Market Capitalization > 50
AND

Market Capitalization < 3000
AND

((Average return on capital employed 5Years > 25 AND
Price to Earning < 20) OR
(Average return on capital employed 5Years > 15 AND
Price to Earning < 10))
AND
Sales growth 5Years > 10
AND
...

...
Operating cash flow 5years /5 < Operating cash flow 3years /3
AND
Operating cash flow 7years /7 < Operating cash flow 3years /3"

In this screener, i am looking for
smallcaps with a min mcap,
which have a bare minimum average ROCE & valuation accordance to the unit economics
which are also growing topline
and where operating cash flows are also increasing, on an average basis
#neulandlab 🌋🌋 read on to understand this company and its story of transformation. On twitter, 🌋 has become synonymous with neuland, and this is how i will use it throughout the thread. If you like the thread, plz retweet & help fellow investors learn


Starting with a simple primer on the Pharma industry. They make medicines for all of us. The part of the medicine which gives it its potency against the ailment it cures is called API: Active Pharmaceutical

(here is a reference few people will get, but have to make it since I love it :D):
If Guardians of the globe (
https://t.co/vH2C1TDbPy) were a medicine, Omniman (https://t.co/0DGb1MAtXN) is the API.


Back to 🌋. There are pharma companies which sell APIs as well as the finished medicine (FDF: Finished Dosage Formulation). Neuland are pureplay API manufacturers. This provides them some advantage since they don't compete with their clients (the FDF makers).

Medicine is diverse. There are medicine which were first discovered in 1920s (https://t.co/6DXNrhOK46), to those being created now (https://t.co/tcr7dAexmO). Naturally then, some of this involves very complex chemistry to manufacture, others are relatively easier to manufacture.
This thread is to create awareness on how to use
https://t.co/3jeqlXO0QH

Please note that i am not officially associated with website. Only an active contributor & hope to benefit from network effects of interested investors actively contributing on platform.

https://t.co/64yVScplqi is above all else a community of like minded investors who wants to actively engage in understandin at a fundamental level & separate wheat from the chaff.

Develop an understanding of the biz, industry, competitive intensity, management, valuation

Website was created > 10 years ago. Early users are seasoned investors & i personally look to learn greatly by following their footprints across the website.

There are broadly speaking 4-5 types of "threads" or discussion places across the website.

1. Featured discussions (hall of fame, showcase discussions, learning).

These enable investor to level up the most. These discussions are a showcase for the website itself.
These are also a great starting point. Since VP is not a course, feel free to traverse them in any order

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MDZS is laden with buddhist references. As a South Asian person, and history buff, it is so interesting to see how Buddhism, which originated from India, migrated, flourished & changed in the context of China. Here's some research (🙏🏼 @starkjeon for CN insight + citations)

1. LWJ’s sword Bichen ‘is likely an abbreviation for the term 躲避红尘 (duǒ bì hóng chén), which can be translated as such: 躲避: shunning or hiding away from 红尘 (worldly affairs; which is a buddhist teaching.) (
https://t.co/zF65W3roJe) (abbrev. TWX)

2. Sandu (三 毒), Jiang Cheng’s sword, refers to the three poisons (triviṣa) in Buddhism; desire (kāma-taṇhā), delusion (bhava-taṇhā) and hatred (vibhava-taṇhā).

These 3 poisons represent the roots of craving (tanha) and are the cause of Dukkha (suffering, pain) and thus result in rebirth.

Interesting that MXTX used this name for one of the characters who suffers, arguably, the worst of these three emotions.

3. The Qian kun purse “乾坤袋 (qián kūn dài) – can be called “Heaven and Earth” Pouch. In Buddhism, Maitreya (मैत्रेय) owns this to store items. It was believed that there was a mythical space inside the bag that could absorb the world.” (TWX)