Let the ball come to you

The hardest thing in life and investing is waiting. Some people just cannot wait and that is where the oppurtunity lies. The more volatile it gets the more better it is. The rule is not to let emotions rule you, rather opposite. What i mean by that is be greedy when others are fearful and... Continue Reading →

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Defination of compounding machines

I tend to judge a compounding machines by numbers of factors. Don't worry its not going to be long.  Firstly the company has to have great ROCE( i look at roce more than roe because roe does not include debt). Most of the times when a company has great roce it has very very low... Continue Reading →

Uncertainty

Do you remember that time when you were in high school and you asked a girl out. She did not say Yes, She did not say No. If you remember that feeling, it sinks you,drains you and finally you do something stupid. Fast forward 20 years and you think we have changed, not a lot.... Continue Reading →

Zig and Zag

Markets are getting volatile. In January 2018 the markets were getting wild and I was getting worried that is it going into bubble territory. Now the mayhem has ended to the other direction. In mid and small cap the prices are cheap and discounts are available. If anyone has patience and reasonable intellect he can... Continue Reading →

Arrogance and Humility

Whole act of investing is put up in the header. When you are buying a stock it is a pure act of arrogance. When you are buying a stock at say 300 and it goes 200, you buy even more(as much as your pocket allows) and in my view buying a stock is a pure... Continue Reading →

Probabilities, Poker, and Value investing

Berkshirepupil

There is a concept in life that says you have to grab big opportunities, because they don’t come around often. Anyone one of you who has played poker(it’s okay even if you have not) know the probability of a royal flush is 649379:1(.000154%), Straight flush is 72192:1(.0015%), four of a kind is 4164:1(.0256%). Now if you look closely into the probabilities,poker and value investing it is the hands you have to say NO to. As a investor/analyst your primary job is look at the scene and say no its too close, there is not enough margin of safety,its too hard or am not capable of analyzing this. Now if you look at the example above your probability of getting a royal flush is .000154%, that means if you play poker out of 649739 hands you will get this hand once. If you look closely the other 99.999846% times you have…

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Mistakes

Now where do we start with this.  It actually depends upon how much time you have. So let's start There is a company called Soril infra and it passed all the tests which I run through.  The company had great ROCE, low debt,  book value growth and sales growth in last 5 years. In 2015-... Continue Reading →

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