tag:blogger.com,1999:blog-7004453.post9215589567229146658..comments2023-09-02T19:53:06.144+05:30Comments on Understanding and applying value investing principles: My personal investment journey - IIRohit Chauhanhttp://www.blogger.com/profile/00356455735241398199noreply@blogger.comBlogger25125tag:blogger.com,1999:blog-7004453.post-3062673198343219972008-10-01T04:55:00.000+05:302008-10-01T04:55:00.000+05:30How to protect portfolio using derivatives? I am n...How to protect portfolio using derivatives? I am not seeing that option written in ur blog or ur journey as an value investor in last 8-9 years. I was told someone that say if you have investments of 5 lakhs in different stock and u can take options in nifty for same amount and protect the downside. how it works? any write up in next blogs may be?Oraclehttps://www.blogger.com/profile/02350139145442285904noreply@blogger.comtag:blogger.com,1999:blog-7004453.post-16118026997241129462008-09-14T17:10:00.000+05:302008-09-14T17:10:00.000+05:30Hi Rohit I am really influenced by your way of inv...Hi Rohit <BR/><BR/>I am really influenced by your way of investing and your experience , i have also started trading but i am not a stock trader but derivative trader , i mainly trade in options . <BR/><BR/>I am more interested in value investing and basic of making great investment decisions . I like to write on investing . may be you would like to have a look at my blog : http://www.finance-and-investing.blogspot.com/<BR/><BR/>Looking forward to read more interesting things from you .<BR/><BR/>Manish <BR/>http://www.finance-and-investing.blogspot.com/Manish Chauhanhttps://www.blogger.com/profile/02521133110428729048noreply@blogger.comtag:blogger.com,1999:blog-7004453.post-41717430242633794152008-09-07T23:25:00.000+05:302008-09-07T23:25:00.000+05:30Hi anias long as you believe in the intrinsic valu...Hi ani<BR/>as long as you believe in the intrinsic value, if the co. sells at a discount then it is a good value. key point is the estimate of the intrinsic value, whether it is growing and how soon the gap will close<BR/><BR/>regards<BR/>rohitRohit Chauhanhttps://www.blogger.com/profile/00356455735241398199noreply@blogger.comtag:blogger.com,1999:blog-7004453.post-69774548712307639402008-09-02T11:43:00.000+05:302008-09-02T11:43:00.000+05:30Hi RohitIn the example of Balmer & Lawrie, you...Hi Rohit<BR/>In the example of Balmer & Lawrie, you have arrived at intrinsic value of 896 and then CMP was at 55% of Intrinsic value. I have not fully understood how you arrived at that value but now CMP is around 385 is it still good buy at CMP? (I am not just jumping on that if you say yes :) )<BR/><BR/>regards<BR/>AniAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-7004453.post-52792662293456015532008-08-31T15:55:00.000+05:302008-08-31T15:55:00.000+05:30Hi NeerajAs i know that news was in June 2007 at t...Hi Neeraj<BR/>As i know that news was in June 2007 at that time price was around 309-315<BR/>& CMP is around 230 approx. i think after that news 4 qtrs numbers were good and as per expectations. So this can be actually buying opportunity for good company. as it is (might be) down by -ve news and weak market conditions.<BR/><BR/>What is your say Rohit?<BR/><BR/>thanks<BR/>AniAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-7004453.post-75210277826550182242008-08-31T03:27:00.000+05:302008-08-31T03:27:00.000+05:30Hi ninadinvesting is simple (the basic concept) , ...Hi ninad<BR/><BR/>investing is simple (the basic concept) , but definitely not easy in application. takes a lifetime. but the journey is definitely fun for me. i think if you love doing it, it does not feel like work, which explains why buffett has been doing it for so long.<BR/><BR/>hi neeraj<BR/>i have read the same about SKF and that is definitely a red flag.Rohit Chauhanhttps://www.blogger.com/profile/00356455735241398199noreply@blogger.comtag:blogger.com,1999:blog-7004453.post-8221780884652488582008-08-31T03:12:00.000+05:302008-08-31T03:12:00.000+05:30hi anilit is true that if everyone thinks a compan...hi anil<BR/><BR/>it is true that if everyone thinks a company is good, then the valuation reflects. think infosys in 2000 or l&t in 2007. so the key is to find company which the company has mispriced. however just holding any 5 companies in the bse 30 index may not give you good returns if you end up overpaying for it. price or valuation is as important as quality ..somehow a lot of people forget that.Rohit Chauhanhttps://www.blogger.com/profile/00356455735241398199noreply@blogger.comtag:blogger.com,1999:blog-7004453.post-83641484056077454962008-08-30T19:20:00.000+05:302008-08-30T19:20:00.000+05:30Hi Rohit and others looking at SKF..please do not ...Hi Rohit and others looking at SKF..please do not ignore a recent development. SKF Sweden (parent company) is establishing its own 100% subsidiary in India for making large-size bell and taper bearings. <BR/>with SKF India's cash on books, they could have done this greenfield expansion in the Indian listed company also. But they chose to do it through 100% subsidiary of the parent company. Indian shareholders will not benefit from this. <BR/>I also had a look at SKF India some time ago. Everything looks great-the products, financials, valuations, etc etc. But this one news negates it all for me. <BR/>Have a look at Fag Bearings instead.<BR/>cheers...<BR/>NeerajAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-7004453.post-81257074812155730122008-08-29T22:40:00.000+05:302008-08-29T22:40:00.000+05:30Hi RohitBuffets quote " Investing is simple but no...Hi Rohit<BR/><BR/>Buffets quote " Investing is simple but not easy" is something that I value and identify with. <BR/><BR/>I think your journey has been in sync with that, keeping it simple but putting in a lot of hard work. <BR/><BR/>People who look at Buffet dont realise that there is a lot of hard work that goes in keeping it simple. <BR/><BR/>I think enjoying the journey is more important than reaching the destination. <BR/><BR/>Cheers <BR/><BR/>NinadNinad Kunderhttps://www.blogger.com/profile/14275940021296930028noreply@blogger.comtag:blogger.com,1999:blog-7004453.post-50825309329606223022008-08-29T11:02:00.000+05:302008-08-29T11:02:00.000+05:30Hi RohitIf everybody starts running after the top ...Hi Rohit<BR/>If everybody starts running after the top 10 companies<BR/>then returns they give will be lesser & lesser. Is it what meant by Value investing?<BR/>After reading your blog, i bought "The WB way" book read it twice.<BR/>What you have written on your blog is identify the comapnies which are unnoticed by mass<BR/>which have low PE, good growth showed in past and will give in future, and which are at attractive price.<BR/>That requires skill. I think selecting any 10 companies from BSE 30 and sitting on them for 5 yrs will definitely fetch you money but that doesn't require skill.<BR/><BR/>My point is every body will be looking for top companies, and after some time top companies won't be TOP companies.<BR/><BR/>thanks<BR/>AniAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-7004453.post-33179355472478256932008-08-29T07:33:00.000+05:302008-08-29T07:33:00.000+05:30Hi prashantthis list is more of a top of mind list...Hi prashant<BR/>this list is more of a top of mind list. there are definitely more of such companiesRohit Chauhanhttps://www.blogger.com/profile/00356455735241398199noreply@blogger.comtag:blogger.com,1999:blog-7004453.post-35787776967374696542008-08-29T06:23:00.000+05:302008-08-29T06:23:00.000+05:30Hi Rohit,Thanks a lot. I am not looking for curren...Hi Rohit,<BR/><BR/>Thanks a lot. I am not looking for current hot favourites. <BR/><BR/>All the companies are in my list except crisil. I will try to get more info on this.<BR/><BR/>Regards<BR/>Prashant DAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-7004453.post-5166989600979020282008-08-28T23:28:00.000+05:302008-08-28T23:28:00.000+05:30Hi haroldwhat these statements mean is that the st...Hi harold<BR/><BR/>what these statements mean is that the stock has compounded at 275% per annum for last 6 years.<BR/><BR/><BR/>such statements have bais built in it. if you look at some stocks which have done well in the last 5 years, you can look at their starting price and look at the current price and make such a claim. the key issue is, not looking backwards. if i look at the stock now, can i claim that will happen. that is the key to making money ..finding tomorrow's winners ..not yesterday's heroes. that ofcourse is easier said than done<BR/><BR/>regards<BR/>rohitRohit Chauhanhttps://www.blogger.com/profile/00356455735241398199noreply@blogger.comtag:blogger.com,1999:blog-7004453.post-9265686048918299562008-08-28T23:25:00.000+05:302008-08-28T23:25:00.000+05:30hi prashantgreat companies for me areasian paintsc...hi prashant<BR/>great companies for me are<BR/>asian paints<BR/>crisil<BR/>ITC<BR/>HLL<BR/>Infosys<BR/>Reliance<BR/><BR/>i am not including some of current hot favourites ..to give an analogy with cricket ...just because you have scored 3 centuries in india does not make you a sachin tendulkar ..you need to perform long and in varying conditions (australia ? )Rohit Chauhanhttps://www.blogger.com/profile/00356455735241398199noreply@blogger.comtag:blogger.com,1999:blog-7004453.post-39228253593963471302008-08-28T23:02:00.000+05:302008-08-28T23:02:00.000+05:30Hi Rohit, thanks for the great post,can you elabor...Hi Rohit, <BR/>thanks for the great post,<BR/>can you elaborate a bit more on the returns part, in the sense i keep on reading things like <BR/>" if you had invested 5000 in so-n-so stock in 2002, it would be 5 lacs by now" without any elaboration on how that works out.<BR/><BR/>Thanks <BR/>HaroldHaroldhttps://www.blogger.com/profile/00205968087034404754noreply@blogger.comtag:blogger.com,1999:blog-7004453.post-70254481584326541702008-08-28T13:34:00.000+05:302008-08-28T13:34:00.000+05:30Thanks RohitregardsAniThanks Rohit<BR/><BR/>regards<BR/>AniAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-7004453.post-8543977892149649002008-08-28T06:03:00.000+05:302008-08-28T06:03:00.000+05:30Rohit,Great post - as usual. Glad to know I am fol...Rohit,<BR/><BR/>Great post - as usual. Glad to know I am following your path i.e. learning….. learning...everyday but I have advantage of technology and people like you - who are more than happy to share experience & thoughts.<BR/><BR/>On your note about sustainable competitive advantage – what do you think of say “top 10 companies” you would like to own if price is no constraint for you or top 10 “Coca-Cola” for buffet in India. <BR/><BR/>Thanks<BR/>Prashant DAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-7004453.post-39581739678835882222008-08-27T20:19:00.000+05:302008-08-27T20:19:00.000+05:30Thanks for the 2nd part. Great to know more about ...Thanks for the 2nd part. Great to know more about your learnings.<BR/><BR/>VikasVikas Ranahttps://www.blogger.com/profile/05508406035178681504noreply@blogger.comtag:blogger.com,1999:blog-7004453.post-14593665745132377002008-08-26T21:47:00.000+05:302008-08-26T21:47:00.000+05:30Hi aniSKF bearing looks good on a fundamental leve...Hi ani<BR/>SKF bearing looks good on a fundamental level. however so do all auto component companies. key point to figure out is how will these companies fare if the auto companies do badly. so from rear mirror view they look cheap, but cannot say from the future perspective. if you ask me, the company looks cheap, but i am not too confident yet.<BR/><BR/>vishnu - will have a look at hawkins. I have invested a small amount in grindwell. their competitive advantage is their R&D and parentage due to which they have a continous stream of better prodcuts. in addition, their brand names and distribution also adds value.<BR/>however is not yet as cheap as i would like.<BR/><BR/>karthik - BEL books most of its revenue and profit in the last quarter. i would read too much into 1 quarter's results. the company does look undervalued to me still<BR/><BR/>regards<BR/>rohitRohit Chauhanhttps://www.blogger.com/profile/00356455735241398199noreply@blogger.comtag:blogger.com,1999:blog-7004453.post-48174082988550480862008-08-26T16:50:00.000+05:302008-08-26T16:50:00.000+05:30Hi Rohit,Great Post... Keep it going :)Any inputs ...Hi Rohit,<BR/><BR/>Great Post... Keep it going :)<BR/><BR/>Any inputs on why BEL has had such a bad quater ? Has anything changed fundamentally?<BR/><BR/>I still feel inspite of the bad reasults it is still a good valuation. Please let me know ur views on this.karthikhttps://www.blogger.com/profile/06869050750982435094noreply@blogger.comtag:blogger.com,1999:blog-7004453.post-89862759024185807282008-08-26T16:06:00.000+05:302008-08-26T16:06:00.000+05:30Hi Rohit,I too changed my style to Graham after re...Hi Rohit,<BR/><BR/>I too changed my style to Graham after reading Sanjay Bakshi , Pabrai and John Neff.<BR/><BR/>I dont mind buying sexy companies at cheap price. <BR/><BR/>Ex: Hawkins Cooker. This company is no 1 Cooker Brand in India..Top Line and Bottom Line are expanding steadily.. it was available at 5 PE...and it was personally GOOD 2 bagger for me. and it is still available at 6 PE..<BR/><BR/>By the way, Grindwell nortan came to my screen sometime back..Can I ask whats your Margin of Safety here ?<BR/><BR/>Normalized PE is 17 ( not including 2007 Profit)<BR/>and normalized Dividend Yield 2.5 (not including 2007 Dividend)...I feel this stock looks cheap as 2007 Profit and Dividend is damn higher than the previous year's Profit and Dvidend. Not my kind of stock unless / untill I am confident of their Business and their position.<BR/><BR/>Regards<BR/>VishnuVISHNUhttps://www.blogger.com/profile/15397730676763694463noreply@blogger.comtag:blogger.com,1999:blog-7004453.post-84409371071118945572008-08-26T14:31:00.000+05:302008-08-26T14:31:00.000+05:30Hi shunyai have rarely used options to hedge and n...Hi shunya<BR/><BR/>i have rarely used options to hedge and never to enhance my returns<BR/><BR/>ani - good to know that you find the posts useful<BR/><BR/>regards<BR/>rohitRohit Chauhanhttps://www.blogger.com/profile/00356455735241398199noreply@blogger.comtag:blogger.com,1999:blog-7004453.post-35820402779039039612008-08-26T14:17:00.000+05:302008-08-26T14:17:00.000+05:30Hello RohitI have tried to figure out a good compa...Hello Rohit<BR/>I have tried to figure out a good company please let me know if my stock screening is correct or not.<BR/><BR/>SKF bearings<BR/>Market Cap 1,159.06<BR/>Book Value 103.40<BR/>Debt / Equity 0.00<BR/>P/E 7.21<BR/>Dividend Yield %2.73<BR/>EPS 30.48<BR/>RO Net Worth 28.88<BR/>Current Ratio 2.06<BR/>Quick Ratio 1.54<BR/>Interest Cover 724.58<BR/>CMP 220<BR/>Few points i looked in this company as it's just 10% above of 52wk low of 202.<BR/>Zero debt company<BR/>FCF(5 yrs)206.10,210.80,156.22,101.44,92.01<BR/>Good PE.<BR/><BR/>What else i have to look into any stock.<BR/><BR/>Please note that i am learning how to pick a value stock, if i am wrong then pls correct me.<BR/><BR/>Warm Regards<BR/>AniAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-7004453.post-54666754460002657582008-08-26T13:25:00.000+05:302008-08-26T13:25:00.000+05:30Hi Rohit,Do you use option for hedging your porfol...Hi Rohit,<BR/>Do you use option for hedging your porfolio?? Pls let us know abt Options , if have ever used them to enhnace ur income.??Shunyahttps://www.blogger.com/profile/15829943928002093935noreply@blogger.comtag:blogger.com,1999:blog-7004453.post-2519748059304559392008-08-26T10:33:00.000+05:302008-08-26T10:33:00.000+05:30Thanks RohitYou have written very good posts. This...Thanks Rohit<BR/>You have written very good posts. This will definitely help smalltime ppl like us.<BR/><BR/>kind regards<BR/>AniAnonymousnoreply@blogger.com