tag:blogger.com,1999:blog-7004453.post3407346160484687051..comments2023-09-02T19:53:06.144+05:30Comments on Understanding and applying value investing principles: The DilemmaRohit Chauhanhttp://www.blogger.com/profile/00356455735241398199noreply@blogger.comBlogger24125tag:blogger.com,1999:blog-7004453.post-12851604695961668762012-03-21T07:53:15.518+05:302012-03-21T07:53:15.518+05:30Hi Rohit,
I've followed your blog for a long ...Hi Rohit,<br /><br />I've followed your blog for a long time. This post is brilliant and spot-on.Johnhttps://www.blogger.com/profile/14682393043392310140noreply@blogger.comtag:blogger.com,1999:blog-7004453.post-9573816408990556442012-03-19T04:29:12.098+05:302012-03-19T04:29:12.098+05:30Hi vic
good to see you here again. we had a repeat...Hi vic<br />good to see you here again. we had a repeat of 2008 in Q3 of 2011 ..isnt it , especially in financials. so i think this will keep hapening. just need to keep eyes open and a strong stomach :)<br /><br />rgds<br />rohitRohit Chauhanhttps://www.blogger.com/profile/00356455735241398199noreply@blogger.comtag:blogger.com,1999:blog-7004453.post-35026259103826146782012-03-19T04:27:48.373+05:302012-03-19T04:27:48.373+05:30Hi anon
welcome to my blog ...i did not realise i ...Hi anon<br />welcome to my blog ...i did not realise i have readers from germany too :) .in that way value investing is universal.<br /><br />saw your blog and can see that you have quite a popular blog<br /><br />i think the indian government is looking at opening up the stock market to qualified foriegn investors soon... dont know the current status<br /><br />i think one of the readers has left a link<br /><br />rgds<br />rohitRohit Chauhanhttps://www.blogger.com/profile/00356455735241398199noreply@blogger.comtag:blogger.com,1999:blog-7004453.post-35201632875392599812012-03-19T04:24:51.697+05:302012-03-19T04:24:51.697+05:30Hi anon
i did not say one should exit crisil ? i p...Hi anon<br />i did not say one should exit crisil ? i personally am still holding it ..atleast for the time being<br /><br />rgds<br />rohitRohit Chauhanhttps://www.blogger.com/profile/00356455735241398199noreply@blogger.comtag:blogger.com,1999:blog-7004453.post-87125308866190566892012-03-19T04:24:09.908+05:302012-03-19T04:24:09.908+05:30Hi anil
fully agree with you on your comment. valu...Hi anil<br />fully agree with you on your comment. valuation are always important, and i would not want to overpay not matter what the quality. that is where patience comes in<br /><br />thats the reason why i have this wish list ...will only when the price is right<br /><br />rgds<br />rohitRohit Chauhanhttps://www.blogger.com/profile/00356455735241398199noreply@blogger.comtag:blogger.com,1999:blog-7004453.post-21380883600697062512012-03-18T23:25:06.479+05:302012-03-18T23:25:06.479+05:30Ministry of Finance India press release
IB<a href="http://www.pib.nic.in/newsite/erelease.aspx?relid=79306" rel="nofollow">Ministry of Finance India press release</a><br /><br /><a href="http://www.interactivebrokers.com/en/general/whyib/PDF-GlobalOfferings.php" rel="nofollow">IB</a>Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-7004453.post-7435438722361887762012-03-17T18:41:28.984+05:302012-03-17T18:41:28.984+05:30Thanks Rohit for educating us through these exampl...Thanks Rohit for educating us through these examples. I also like the fact that you continue to add to such list of high quality businesses.<br /><br />Let's hope we come across an opportunity like 2008 again..:-)<br /><br />Vichttp://mypursuitofperfection.wordpress.com/noreply@blogger.comtag:blogger.com,1999:blog-7004453.post-15913892886666590882012-03-17T03:05:13.757+05:302012-03-17T03:05:13.757+05:30Dear Sir,
lovely blog. I also have a blog over t...Dear Sir, <br /><br />lovely blog. I also have a blog over there in Germany regarding Value Investing. Check it out with Google Translate. I hope you will like it : <br />http://aktienanalyse-fundamental.blogspot.com/<br /><br />but that is not the reason why i am here. I am here because i want to ask you how can i buy Indian stocks directly ? i asked 3 Indian Brokers. And they couldn´t help me. It sounded that as an foreigner, im German and live in Germany, i can´t open an account with an Indian broker ? is this right ? i never had an answer from this brokers :=(Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-7004453.post-79270966110853349572012-03-16T17:05:19.236+05:302012-03-16T17:05:19.236+05:30Why would one exit CRISIL. Are you suggesting that...Why would one exit CRISIL. Are you suggesting that it is fully valued. In which case returns should be in line with profit growth which in last 5 yrs is about 20%. IMHO this is a company with a solid management and is rewarding shareholders with 80-90% of profits as cash dividends. Given this why would one want to exitAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-7004453.post-12961380596727501572012-03-14T18:32:04.398+05:302012-03-14T18:32:04.398+05:30Hi Rohit
Quite interesting blog. I would say that...Hi Rohit<br /><br />Quite interesting blog. I would say that for companies like Crisil or any other growth company we need to know lot more about industry, management, competitive pressure, products etc compared to stock like Denso India, which are more like cash bargains or dirt cheap. On the basis of my personal experience the risk of loss is higher in growth companies compared to cash bargains or where value is substantially below book value. For eg People who had invested in companies like Vishal retail or Pantaloon retail might have to bear huge losses just because they fail to appreciate the risk of debt burden when the company was posting handsome growth.Anil Kumar Tulsiramhttps://www.blogger.com/profile/08957135865779188117noreply@blogger.comtag:blogger.com,1999:blog-7004453.post-62993963814979569342012-03-10T23:05:15.314+05:302012-03-10T23:05:15.314+05:30Hi valueinvestor from germany
welcome to the blog....Hi valueinvestor from germany<br />welcome to the blog. i am partly in the same boat too, but have been moving out of cheaper stuff for high quality stocks as valuations are cheap for the high quality stuff in india<br /><br />rgds<br />rohitRohit Chauhanhttps://www.blogger.com/profile/00356455735241398199noreply@blogger.comtag:blogger.com,1999:blog-7004453.post-897563137998578902012-03-10T23:03:53.165+05:302012-03-10T23:03:53.165+05:30Hi Rpost
did not understand your comment ? what is...Hi Rpost<br />did not understand your comment ? what is technical in my analysis ? btw, i really dont know anything about technical analysis , so anything technical would only be by coincidence<br /><br />rgds<br />rohitRohit Chauhanhttps://www.blogger.com/profile/00356455735241398199noreply@blogger.comtag:blogger.com,1999:blog-7004453.post-85852350393446438932012-03-10T23:02:51.670+05:302012-03-10T23:02:51.670+05:30Hi anon
have not looked at ICRA for some time. i s...Hi anon<br />have not looked at ICRA for some time. i simply picked CRISIL as it has the highest market share and also mulitple revenue streams<br /><br />rgds<br />rohitRohit Chauhanhttps://www.blogger.com/profile/00356455735241398199noreply@blogger.comtag:blogger.com,1999:blog-7004453.post-66894095983569527732012-03-10T23:01:39.579+05:302012-03-10T23:01:39.579+05:30hi ashok
are you in the US ? a lot of fantastic co...hi ashok<br />are you in the US ? a lot of fantastic companies are available at unbelivable prices. Microsoft, pepsi, berkshire hathaway and the list goes on<br /><br />most people take a simplistic approach. india = high growth = consumption stock = fMCG stocks ..so buy these stocks at any price<br /><br />and US = low growth = dont buy anything<br /><br />i personally will not by the so called consumption story stocks at these high valuations<br /><br />rgds<br />rohitRohit Chauhanhttps://www.blogger.com/profile/00356455735241398199noreply@blogger.comtag:blogger.com,1999:blog-7004453.post-90250177970478326932012-03-10T22:58:49.270+05:302012-03-10T22:58:49.270+05:30hi lucky
yes ..the high quality stuff is good if o...hi lucky<br />yes ..the high quality stuff is good if one is a bit patient and it is a pleasent experience holding these companies. the cheap ones generally are with poor economics and horrible managements<br /><br />L&T is also in the list, but it is more cyclical<br /><br />rgds<br />rohitRohit Chauhanhttps://www.blogger.com/profile/00356455735241398199noreply@blogger.comtag:blogger.com,1999:blog-7004453.post-52638597299051088652012-03-10T22:57:39.968+05:302012-03-10T22:57:39.968+05:30Hi dhwanil
you raise very good points. you are rig...Hi dhwanil<br />you raise very good points. you are right ..the basic approach is the same. at the same time cash bargins or the real cheap stuff has poor or very mediocore economics ...for example - 2nd and 3rd tier auto component suppliers, second tier chemical companies etc. in all these cases, the intrinsic value is not increasing at a good pace and in some cases it is stagnant<br /><br />as a result one has to wait for the stars to align for the value to be realised. the longer it takes, more is the opportunity cost. in comparison in case of good business, the intrinsic value is increasing, so even if you wait the final gains are good<br /><br />you will make decent returns even with graham style stocks, but the good money is made by investing in good business at reasonable or cheap prices.Rohit Chauhanhttps://www.blogger.com/profile/00356455735241398199noreply@blogger.comtag:blogger.com,1999:blog-7004453.post-64704106446130438722012-03-10T22:52:37.861+05:302012-03-10T22:52:37.861+05:30Hi kishor
will provide that data in due course. at...Hi kishor<br />will provide that data in due course. at the same time times like dec 2011 or nov2008-mar 2009 are good times to pickup these stocks as everyone is scared at that time and these stocks are cheaper and safer too<br /><br />rgds<br />rohitRohit Chauhanhttps://www.blogger.com/profile/00356455735241398199noreply@blogger.comtag:blogger.com,1999:blog-7004453.post-19475044077607678272012-03-09T20:30:53.466+05:302012-03-09T20:30:53.466+05:30A dilemma every value investor faces!
I am still n...A dilemma every value investor faces!<br />I am still not sure if i am more comfortable with deep value stocks or with quality stocks. At the moment my portfolio is mixed with both.a value investor from germanyhttp://investment-analyse.net/noreply@blogger.comtag:blogger.com,1999:blog-7004453.post-26212995990086842412012-03-08T20:24:58.900+05:302012-03-08T20:24:58.900+05:30Does the Value investor turning technical?Does the Value investor turning technical?RPostnoreply@blogger.comtag:blogger.com,1999:blog-7004453.post-29620773407184228422012-03-06T21:44:17.002+05:302012-03-06T21:44:17.002+05:30Great post as always. But why? Why do you think Cr...Great post as always. But why? Why do you think Crisil got this value, and not Icra?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-7004453.post-82905266640945053492012-03-06T00:15:11.376+05:302012-03-06T00:15:11.376+05:30Hi Rohit,
Thanks for your post.
Personally, I l...Hi Rohit, <br /><br />Thanks for your post.<br /><br />Personally, I like buying only quality companies for long term.<br /><br />In India, at present my main concern being hefty premium attached to them-so even in medium term retun could be less than satisfactory.<br /><br />comparing India FMCG valuations with international names make choice easy if one has access to international markets. <br /><br />http://www.reuters.com/finance/stocks/financialHighlights?symbol=RBGPF.PK<br /><br />stock like Reckitt with mighty brands and CAGR EPS long term growth rate of 15% is avaialable at PE of 14 and dividend yield of 3-4%.<br /><br />In technology near monopoly Intel with long term growth rate 12-15% is available at PE of 11.2 and yield of 3.12!<br /><br />http://www.reuters.com/finance/stocks/financialHighlights?symbol=INTC.O<br /><br />These are same companies which traded at PE of 33 upwards at some point and hence underperformance for long time. <br /><br />Looking at Nestle, Dabur, Marico reminds me the same. I love to invest in these companies but not at current valuation. <br /><br />Valuing HDFC is difficult for me with all its divisions but it appears to be a sound coumpounder. Would you be kind enough to tell me whether it is fairly valued at current price?<br /><br />Regards,<br /><br />AShokAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-7004453.post-10813397827352835882012-03-05T09:12:54.144+05:302012-03-05T09:12:54.144+05:30Good post, as always. This is a dilemma faced by a...Good post, as always. This is a dilemma faced by almost all investors.<br /><br />The high quality companies seem to / tend to give lower returns over the short term. But if one considers the long term returns coupled with the lower cost oveheads of taxes and fees, they fare much better.<br /><br />And the bonus is the peace of mind one gets by being invested in such a company.<br /><br />We would, of course, want to know your estimate of the fair values of these esteemed companies.<br /><br />Can L&T also belong to this list?Luckynoreply@blogger.comtag:blogger.com,1999:blog-7004453.post-66074226230885650282012-03-03T11:40:22.302+05:302012-03-03T11:40:22.302+05:30Hi Rohit,
Interesting post. Don't you think t...Hi Rohit,<br /><br />Interesting post. Don't you think that methodology for exiting both the stock would be roughly similar i.e. assessing discount in price as compared to approximate intrinsic value? In case of a cash bargain, the driving force for selection is pure value and business quality sufficient to ensure that it does not "burn cash". Hence, as the price rise and cash bargain cease to exit, one shall exit. However, I do agree that this strategy has its own downside and Ben Graham suggested to adopt this strategy as divesified portfolio instead of betting on single stock. So one has to adopt this strategy with pinch of salt!<br /><br />Regarding your wish list, All of them are wonderful businesses. Wouldn't it take 2008 like crash to bring the stocks to a level where they are reasonably priced?Dhwanilhttps://www.blogger.com/profile/02537043667425952923noreply@blogger.comtag:blogger.com,1999:blog-7004453.post-17286842536304592972012-03-03T10:59:31.379+05:302012-03-03T10:59:31.379+05:30please do indicate when & @ what price u buy H...please do indicate when & @ what price u buy HDFC bank, Titan industries, ITC, Marico, Hero motorcorp, HDFC limited and nestle india .....Kishor Barhatehttps://www.blogger.com/profile/01707926756005151887noreply@blogger.com