Intelligence, Skill, Discipline & Wisdom in Value Investing from Bharat Shah

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I am a firm believer of Law of Attraction as well as Law of Simplicity.

Everything we do have to be very simple in understanding and in execution as well. Since the day I entered in Value Investing, it is my quest to have a very simple process of investing that I can follow and I follow it.

Intelligence, Skill, Discipline & Wisdomin Value Investing

As far as Law of Attraction is concerned, coming across this interview was a sheer Law of Attraction. I didn’t know Bharat Shah until my boss told me to read his interviews. # Bharat Shah Interview in Outlook Business (more…)

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Idea Funnel, Tracking Position & Equity Research!

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Each and every great investment needs research! Sincere research!

What is the problem?

We are so busy tracking hundreds of companies we hardly get serious about it. We have some basic content to talk about companies with clients or colleague but we often lack seriousness in research.[At least I am feeling so in my case!]

This hollowness comes forward as subjective questions arises and then we try to change the topic.

Often, our friends, colleague or network suggest us a stock, we have glance at it and we ignore it for one or another reason without sincerely looking into it. Than we say, It was lapsed from my hand when this was 1/10th of the price.

The point is, we are so much involved in noise we barely get time to go deeper  in it.

I see a problem there.  Psychologically something is resisting me from looking into it.

What’s the solution to it?

The solution is to develop a process through which you will be able to determine which companies to look into and which are to ignore, as per your investment philosophy or interest.

How can we develop  such process? 

I am not very sure! But I have some earlier experience into digital marketing, where we used to create a “Sales Funnel” which converts a visitors into buyers.

Here, We need to something of that kind. We need to make an Idea Funnel which will help us to gather ideas from various sources and then we can boil it down to few worthy companies to dig deeper into.

How to use “Idea Funnel”?

Idea Funnel
Idea Funnel

(more…)

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Patterns, Investment Decisions & Noise!

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There is a lot of discussion happening about the companies and investment processes with Investors & people from our industry since I started my job in June.

Thinking Patterns MoneyMonk

Till date, I could figure out the following which(I feel) is required to find a great investment. I also call it my investment philosophy. (I know! You may say, It’s very simple!) But the simplest are the hardest to execute!

Great so far! (more…)

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MoneyMonk’s Checklist for Business Analysis & Evaluation

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If we want to come to a conclusion whether the company is a good buy or not, we have to consider 3 aspects.

  1. Business
  2. Management
  3. Valuation

So in-order to aid our decision making, creation of check-lists become necessary. It will help us to minimize the error and reduce the bias in decision making.

I am working on developing my own checklists for Business, Management & Valuation. Here I am posting my Business Evaluation Checklist. (more…)

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Market Share vs Profit Share in an Industry !

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market Share vs Profit Share MoneyMonk

Yesterday, something strange happened to me when I read this tweet from Prof. Sanjay Bakshi.

As always, my curiosity didn’t let me loose the moment and I expanded the conversation. Just when my mental fuse was gone. The discussion was about apple is having 92% profit share despite having 20% market share. The answer of the quiz was Rajiv Bajaj 😀 (more…)

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How Capital Allocation plays role in generating great returns?

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Let’s imagine a scenario. You have developed superb equity research skills over the years so that you can find those companies which will turn into multi baggers. Nowadays you are very good at it. You have identified few companies which is going to be multi-bagger 😀 And you invested in those companies.MoneyMonk's CApital Allocation

But according to conventional wisdom, these micro caps or small caps companies have high beta hence more risky. Hence to mitigate the risk of loosing capital you allocated 5% of your over all portfolio being a smart person. Isn’t it? (more…)

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