One thing which became clear time and again!! Investing is a game of Elimination!! Out of 3,694 companies, no. of investible companies got reduced to 348. That’s more than 90% elimination. The more you eliminate, the better it becomes!! So is life, isn’t it? What are you eliminating?
Stay patient despite being ridiculed (while investing as well as in personal lives), for victory is ~almost~ a sure thing!!
– Dick Fosbury’s Olympian Lesson – Be Ready To Be Ridiculed
Masayoshi Son’s financial KPI was Sales and profits, not in the same order (
– Jeff & Son – Differing KPIs – Differing Results!!!fuelledfooled by debt)! Frankly, the KPI was faulty to begin with!!
Among the airline industry players, Indigo’s value proposition in terms of having more than 48% domestic market share + low-cost + strong cash flows + continuous profitability + optimal debt – makes it attractive.
– Interglobe Aviation – Am Loving it!!
As long as excess productive capacity exists in the industry the prices tend to reflect direct operating costs rather than capital employed.
– Steel Industry: Tata Steel – Musings
Such a high price for the bankers and obviously investors for not having observed!! Some of them were not even seeing, perhaps sleeping on the wheel.
– Seeing Vs Observing
While everyone wants to go to heaven, but no one wants to die. While everyone proclaims to be a long-term investor, however each of them knows their YTD returns to the last decimal point.
– Idleness – Investing Thoughts
Why should a company have an increase in debtors when it is able to create brand value? Shouldn’t the customers be swooning to take over the company’s products if its created brand value is high, thereby either paying in advance or paying for it in cash. Isn’t this obvious?
– Dollar Industries: Fit Nahi Hai Boss
Hopefully, the numbers being provided can be relied upon, especially when there are 74 subsidiaries, 3 JVs and 1 associate involved laced with multiple acquisitions!! I Really hope so!! Well, this becomes more bizarre when some numbers are UNAUDITED.
– Motherson Sumi Systems – Real Auditor Numbers – Who? What?
With such a large recurring fixed expenditure, it is important to keep increasing the revenue (for Future Retail), thereby leading to immense pressure every day. While renting allows to expand faster, it however, also creates a short-term view to some extent, since it is always susceptible to leave the location if the store is not performing in accordance with the expectations.
– Future Group Vs DMart
Since the transportation Blue Origin business, if flawed right now, thankfully, Jeff is not buying the rockets through Amazon’s core business, unlike some entrepreneurs who use shareholder’s money to buy shiny toys for themselves at the garb of superfluous EBITDA!!
– Finance Lesson from Jeff Bezos
After all, who wants to slice the golden goose. As long as revenue continues to grow, and the numbers keep showing up – no one’s complaining!! Life is great!! While the management and the auditors continue to live happily ever after, hope no other stakeholder is caught naked when the tide runs out.
– Motherson Sumi Systems – Real Auditor Numbers – Who? What?
Despite a non-communicative management, low capacity utilization, diversification in unrelated business, the company’s market capitalization has increased by 25% p.a. since the last 10 years.
– G.M. Breweries – Counter intuitive Thoughts
Next time, somebody rattles about profit or EPS, please do not permit that number to warp your judgement.
– Being profitable is hardly the evidence of a good business
Considering some of these above, I would refrain from catching the “falling knife”, unless it really starts building a franchise. After all, I would not buy a dilapidated house, just because it is available cheap. Would you?
– Quotational Loss = Buying Opportunity?
Disclaimer: Please note that these are my personal views. While I am NOT a registered Research Analyst as per SEBI (Research Analyst) Regulations, 2014, all investors are advised to conduct their own independent research into individual stocks or industries before making any decision. In addition, investors are advised that past stock performance is not indicative of future price action.