tag:blogger.com,1999:blog-7004453.post4744446932410661447..comments2023-09-02T19:53:06.144+05:30Comments on Understanding and applying value investing principles: Patterns of failureRohit Chauhanhttp://www.blogger.com/profile/00356455735241398199noreply@blogger.comBlogger12125tag:blogger.com,1999:blog-7004453.post-91651919934993667432013-12-28T05:12:32.375+05:302013-12-28T05:12:32.375+05:30achin - cebbco did not have high debt to begin wit...achin - cebbco did not have high debt to begin with. they got caught in a downcycle and could not service the debt. its a combination of debt and nature of business which turns out of lethal<br /><br />rgds<br />rohitRohit Chauhanhttps://www.blogger.com/profile/00356455735241398199noreply@blogger.comtag:blogger.com,1999:blog-7004453.post-59869935673713346292013-12-28T05:09:28.302+05:302013-12-28T05:09:28.302+05:30stock lover - we all have our scars. guess we lear...stock lover - we all have our scars. guess we learn and move on<br /><br />dhirubhai<br />companies like HGS or balmer will not go down the drain as they are generating a lot of cash and do not have debt. they can stagnate, but will not crash<br /><br />yes, I have noticed the sanjay bakshi effect on some stocks, but the price comes back after some time. most people don't have the patience to hold a good ideaRohit Chauhanhttps://www.blogger.com/profile/00356455735241398199noreply@blogger.comtag:blogger.com,1999:blog-7004453.post-26014170663708186502013-12-26T11:19:11.195+05:302013-12-26T11:19:11.195+05:30IKF Finance - There is a rumor that a PE is going ...IKF Finance - There is a rumor that a PE is going to invest in the firm at Rs 35 post delisting. Pls have a look at the company.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-7004453.post-90841309088923235982013-12-24T08:22:17.504+05:302013-12-24T08:22:17.504+05:30I was able to 'duck under' all these debt ...I was able to 'duck under' all these debt traps. I simply walk away if company is making money from current operations but its debt keeps on swelling. Also thing to keep eye on equity capital, dividend yield and promoter holding to screen stocks for larger understanding. <br />For me the desire to grow bigger should be based on debt and loan. shiachinhttps://www.blogger.com/profile/09717629892931206761noreply@blogger.comtag:blogger.com,1999:blog-7004453.post-47902594722499874982013-12-23T23:24:25.762+05:302013-12-23T23:24:25.762+05:30Yep... suffered a 90% drop on Allied digital, a lo...Yep... suffered a 90% drop on Allied digital, a long case of going nowhere in Tata Elxsi and Hinduja global. Currently I am going through similar case with Tide water oil. At some point I need to decide which ones are worth the pain. A steady, consistent and growing dividend (hinduja global, tide, Balmer) usually prolongs the ordeal for me else I have learnt to cut losses and sometimes even save on my taxes. <br /><br />BTW, nobody's talking about it but did you notice the Bakshi Effect in Indian Markets similar to the Barrons effect :-)Dhirubhainoreply@blogger.comtag:blogger.com,1999:blog-7004453.post-27356275108038594742013-12-23T00:02:13.974+05:302013-12-23T00:02:13.974+05:30I already punished with Allied Digital so i escape...I already punished with Allied Digital so i escaped from Zylog.Stock Lovernoreply@blogger.comtag:blogger.com,1999:blog-7004453.post-21390642108392924312013-12-17T02:08:28.139+05:302013-12-17T02:08:28.139+05:30hi venkat
same here with zylog ..I was got entince...hi venkat<br />same here with zylog ..I was got entinced with the cheap price.<br /><br />I was rightly punished and have learnt my lesson. never partner with a bad management ..no price is low enough. it can always be 0<br /><br />rgds<br />rohitRohit Chauhanhttps://www.blogger.com/profile/00356455735241398199noreply@blogger.comtag:blogger.com,1999:blog-7004453.post-81846248310248248392013-12-17T02:05:03.304+05:302013-12-17T02:05:03.304+05:30hi anon
yes ..agree with you. govt regulation is a...hi anon<br />yes ..agree with you. govt regulation is an issue too.<br /><br />however how many companies does one need to build a good long term portfolio ? I would say 10-15 ..that is quite possible even with all the problems<br /><br />rgds<br />rohitRohit Chauhanhttps://www.blogger.com/profile/00356455735241398199noreply@blogger.comtag:blogger.com,1999:blog-7004453.post-5995456285791034002013-12-17T02:03:54.133+05:302013-12-17T02:03:54.133+05:30Hi prem
I personally want to avoid companies with ...Hi prem<br />I personally want to avoid companies with a bad management. In the end I need not more than 10-12 companies ..so why partner with bad management. it is tough enough with good business and good management.<br /><br />I have filter now in place where I reject or sell a company if don't trust the management...life is too short to have such aggravation<br /><br />rgds<br />rohitRohit Chauhanhttps://www.blogger.com/profile/00356455735241398199noreply@blogger.comtag:blogger.com,1999:blog-7004453.post-8839969253934699472013-12-15T22:35:33.238+05:302013-12-15T22:35:33.238+05:30I was not able to avoid zylog and CEBBCO,may be i ...I was not able to avoid zylog and CEBBCO,may be i had an over confidence bias. After the loss i just raised the entry criteria to make sure i buy companies with good management background. Nice post and thanks for the list of items to watch out in an AR.Venkathttps://www.blogger.com/profile/05618757823275293585noreply@blogger.comtag:blogger.com,1999:blog-7004453.post-86101444974220631072013-12-15T09:17:24.972+05:302013-12-15T09:17:24.972+05:30One of the major factors to include would be wild ...One of the major factors to include would be wild 'Government Policy changes' (Gold/Jewellery stocks, Mining stocks, PSU stocks, Sugar,....) in addition to 'Unethical Management' (most of Marwari/Baniya run companies, Ambanis, Ruias who have governments in their 'pockets', Ahmedabad/Hyderabad headquartered companies) regulators who do not regulate (SEBI, SAT,..) Lax laws. Not many companies left for us to invest in India? Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-7004453.post-86872236075553049082013-12-15T08:20:59.306+05:302013-12-15T08:20:59.306+05:30Thanks for the post Rohit. Enjoyed reading it.
N...Thanks for the post Rohit. Enjoyed reading it. <br /><br />Not only is failure a better teacher, success is sometimes a lousy teacher - esp when success happens early. <br /><br />For guys like me who aren't as intensive as you are - this inversion principle is fantastic. I always have difficulty in choosing what to invest in, but have lesser difficulty in deciding what NOT to invest in. Your list is quite bang on - avoid high debt, poor ROE/ROA, poor cashflow, poor working capital discipline and frequent equity dilutions. This itself will serve any average investor well - avoiding the big mistakes.<br /><br />That said, whats your take on cases where the company seems to be doing well on other parameters, but promoter has a few red flags.<br /><br />Would like to know your opinion on it. (That too is a strong red flag to me irrespective of the returns that you may miss).<br /><br /><br /><br />Prem Sagarhttp://premsagar.netnoreply@blogger.com