BC VALUATION

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D.Muthukrishnan
@dmuthuk 3 years, 2 months ago 373 views

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Good time to buy is when a theme or segment is ignored by the market and not when it is popular.

When you buy what is popular when it is popular, need to forego returns for few years.

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D.Muthukrishnan
@dmuthuk

Aggressive investors don't last very long. Conservative ones do.

D.Muthukrishnan
@dmuthuk

Stocks need not move for few years and then give huge returns in a single year. Always staying invested is the only way to benefit from these movements. Most of us become impatient and quit thereby foregoing gains.

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D.Muthukrishnan
@dmuthuk

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.

D.Muthukrishnan
@dmuthuk

"With a wonderful business, you can figure out what will happen; you can't figure out when it will happen. You don't want to focus on when, you want to focus on what. If you're right about what, you don't have to worry about when."-Warren Buffett

D.Muthukrishnan
@dmuthuk

Stocks are bought and sold based on short term price movements. Even institutions don't take more than four quarters view. As an individual investor, you can completely ignore short term and take a decadal view. That's why each one gets different result from the same stock.

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Intrinsic Compounding
@soicfinance

A word of advice and caution. When you buy a High Pe stock. Make sure that you are very certain about the growth. Plenty of good and bad examples

Eicher=Growth stopped, Got derated.

Pi Industries= At 52+Pe in 2015, growth continued (5bagger since then)

Symphony=Growth stopped as more competitors copied them, painful time correction.

Astral=Kept growing and entering newer adjacencies since 2015 when it was at 60+ Pe. (Been a 10 bagger since then)

Page Industries=Growth stopped as the company matured. No returns for last 4 yrs.

Bajaj Finance= Kept growing (barring Pandemic). Kept rerating with the earnings growth.

HDFC Life=Been absurdly valued since 2018. Leading to very poor returns.

Relaxo=Kept getting rerated on back of earnings growth.

High Pe means market is expecting strong earnings growth. What happens when it fails to come? Likely derating or painful time correction.

Paying a high multiple, you need to make sure that the growth is certain.

What I do to grasp such opportunities or to ignore them is to have a mix of deeply valued companies (like some financials I own) with Companies where I think they will grow at 30-35%+ (Navin).

This is what my framework is:-

Pf=High Pe+Already seen value+Strong earnings growth

$Mungerisms \u2022 Charlie Munger Bot$

Mungerisms • Charlie M...
@CharlieBot

In those days, working capital belonged to the shareholders.

If the employees were no longer useful, you just sacked them all, took the working capital, and stuck it in the owners' pockets.

That was the way capitalism worked

Nowadays, of course, the accounting is not realistic

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Leading Nowhere
@leading_nowhere

@Dinesh_Sairam @a_basumallick @ashwinidamani Questions that are only answered with time haha.

@a_basumallick @ashwinidamani Just to add - sustainable FCF is a faraway concept for most till (if) they gain scale or innovate/add value. Till then, it's generally always a struggle to manage WC and capacity addition. Wouldn't expect that to change for a while.

$Varinder Bansal \U0001f1ee\U0001f1f3$

Varinder Bansal 🇮🇳...
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Has anyone compared AB Fashion in lieu with Nykaa valuations?

Nykaa FY21 TOTAL sales at around 2500 cr: expected m-cap over 50,000 cr

Aditya Birla Fashion FY21 online e-commerce sales 900 cr (total sales 5600 cr) – has done 8700 cr pre-covid; m-cap is 25,000 cr

#justcurious

Vincent Daniel
@VD718

@BrianFeroldi Agree- but isn’t equally silly to assume near 100% probability of achieving full TAM potential at peak operating margins and peak multiples in say 2035?

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Hello Dear Tweeples!

It’s Siddhars time of the week! Last week I shared story of Guru (Machamuni or Yogi Matsyendranath), this week I bring you information on his Shishya.

#Thread on Gorakanathar Siddhar.

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His origin story is interesting, though I couldn’t verify it’s authenticity, so not sharing the story here. He’s shishya of Machamuni Siddhar and also learnt from Agasthiya Siddhar.

@HelloNNewman @RajiIndustani @Kishoreciyer1

Unlike other Siddhars, he is depicted as either with a Tiger or seated & wearing Tiger skin. While I couldn’t find any explanation for this. My interpretation is as follows:

Tiger is a predator that lurks around and attacks unexpectedly.

Our 5 indriyas and 5 vikitis also similar to Tiger, they lurk around and attacks our thoughts when we’re least expecting. Gorakkar is said to have mastered these aspects, thus to denote this, he shown with Tiger.

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Gorakanathar or Gorakshnath (as he’s known in the Nath Sampraday) is celebrated Guru in both Northern and Southern part of India. He’s one of the NavNath in Nath Sampraday and also 18 Siddhars of Tamil tradition. During his life, he’s travelled Indian subcontinent extensively +

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@FactualistCom

Trending news of The Rock's daughter Simone Johnson's announcing her new Stage Name is breaking our Versus tool because "Wrestling Name" isn't in our database!

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RANI NAIKI DEVI AND THE BATTLE OF KASAHRADA

Mohammad Ghori, the young Ghurid Prince conquered Ghaznavids in Afghanistan in the year 1173 CE. He conducted some successful raids into the Indian territory, which even Mahmud Ghazni & the Persians couldn't do.

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When he marched southwards, his first target was the prosperous fortified town of Anhilwara Patan.
It was the capital of Chalukyas(also known as Solankis of Gujarat) which was established by Vanraj of Chapotkata Dynasty in 8th century.

American historian Tertius Chandler states that it was the 10th largest city in the world at that time. The history of Chalukyas has been written by many historians, but the valour of the Great Queen Naiki Devi remains unsung.

Born to the Kadamba King Paramardin of Goa,Naiki Devi was well trained in sword fighting, horse riding, strategy & every other subject of Statesmanship. She was married to King Ajaypala of Gujarat who sat on throne in 1171CE. Unfortunately,the King died within 4 yrs of his rule.

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Beautiful Story of Guruvayurappan

Poonathanam Namboothiri was a great devotee of Guruvayurappan. One day Poonthanam was going to Guruvayur Kshetram. It was night time and eventhough Namboothiri was tired he continued to walk

Suddenly some thieves came and blocked his way. Poonthanam cried for Shri Krishna to help. Thieves snatched all valuables from him, but Namboothiri holding his Bhaghavatam book called Shri Krishna to help. That time a man came in a horse back and fought with thieves and protected

Namboothiri. Poonthanam thanked Krishna for helping him from danger and said to the man that "Shri Krishna has send you here and I don't know how to thank you". The man smiled and told that he is Mangattachan, minister of samoodhiris. Poonthanam once again thanked him and

gave his ring to Mangattachan as a token of thanks and continued his journey. He reached Guruvayur early morning for Nirmalya Darshan. Temple poojari came near him and told that Guruvayurappan came in his dreams and asked to hand over the ring to poonthanam.

When he opened Kshetra Nada poonthanam was surprised to see his ring on Guruvayurappan, which he gifted to Mangattachan. He understood that it was Guruvayurappan who came as Mangattachan to protect him. This is how Bhagwan treat his devotees.

Hare Krishna
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