A thread on the book 'The Thoughtful Investor' by @BMTheEquityDesk
Before we get into it, if you want a pdf of this thread then please do join into my email list and receive the pdf instantly.
mailchi.mp/8fddf2dd9dac/j…
mailchi.mp/8fddf2dd9dac/j…
Part A: The World of Investing
The Business Of Investing:
An investor has to be lazy in taking profits and agile in
cutting losses.
The process of getting rich for a big everlasting smile
entails sacrificing a lot of small happy moments.
The Business Of Investing:
An investor has to be lazy in taking profits and agile in
cutting losses.
The process of getting rich for a big everlasting smile
entails sacrificing a lot of small happy moments.
To attain financial freedom one must have a corpus of fifty times their annual expenses.
The fight remains between a bird in hand and several in
the bush.
The fight remains between a bird in hand and several in
the bush.
Magic Of Compounding:
A great idea does not come often and when it does the
need of the hour is to bet big and hold it for its up move.
Long time can compensate for little less return rate. Being in the game matters more.
A great idea does not come often and when it does the
need of the hour is to bet big and hold it for its up move.
Long time can compensate for little less return rate. Being in the game matters more.
Equities Don't Outperform All Asset Classes All The Time:
Index Investing- In India index is market cap weighted instead of being price weighted as it is in the USA.
Which means Indian index gives more weightage to few stocks
Index Investing- In India index is market cap weighted instead of being price weighted as it is in the USA.
Which means Indian index gives more weightage to few stocks
Attributes Of A Full Time Investor:
When work becomes passion - wealth follows.
If you don't know why you should be buying a stock then this is not your cup of tea.
Its the research that needs the passion not the minute to
minute outcomes
When work becomes passion - wealth follows.
If you don't know why you should be buying a stock then this is not your cup of tea.
Its the research that needs the passion not the minute to
minute outcomes
Some advise:
Look for a group of serious investors
No substitute for reading
Make Notes
Read past experiences of others P
Put real money
Avoid mocking trading: You don't face the joy of winning or the fear of loosing the money.
Look for a group of serious investors
No substitute for reading
Make Notes
Read past experiences of others P
Put real money
Avoid mocking trading: You don't face the joy of winning or the fear of loosing the money.
The Pain of Losing:
Companies don't grow at 40% on an individual basis. There has to be a sector tailwind for which such stocks are leaders.
Market tops and bottoms are caught by two people: fools or liars.
Companies don't grow at 40% on an individual basis. There has to be a sector tailwind for which such stocks are leaders.
Market tops and bottoms are caught by two people: fools or liars.
Basant suggests that one should not buy immediately when the market crashes and should wait on the sidelines and wait for the 'blood to dry'.
An investor who buys stocks on borrowed capital is less
likely to make a mistake than the one who buys it on
borrowed conviction.
An investor who buys stocks on borrowed capital is less
likely to make a mistake than the one who buys it on
borrowed conviction.
Risk vs. Return: Most investors get rich by avoiding risk and not by taking it.
Buy What You See: In the long run shareholder's return is determined by the ROE only
Buy What You See: In the long run shareholder's return is determined by the ROE only
Macro Numbers - How To Analyze Them?:
A trader in Chandini Chowk would do nothing differently just because a macro number has come in a certain way but the passive owner of much larger and efficient business will be tearing their hair trying to forecast the
actual impact...
A trader in Chandini Chowk would do nothing differently just because a macro number has come in a certain way but the passive owner of much larger and efficient business will be tearing their hair trying to forecast the
actual impact...
...of these number. Any if that affects all the players of an industry it should, in most cases, be ignored
Part B: Bull Market, Trends and Economic
Bubbles
Identifying Tops and Bottoms:
Signs of a bull market
Launch of fresh mutual fund schemes
Inflow of Foreign institutional investors FII
Maximum Leverage
Bubbles
Identifying Tops and Bottoms:
Signs of a bull market
Launch of fresh mutual fund schemes
Inflow of Foreign institutional investors FII
Maximum Leverage
Why market falls suddenly:
Just a little drop in prices leads to leveraged people getting margin calls which further leads to a chain reaction of selling further dropping of the prices. This further creates fear in the market and the weak
players start selling.
Just a little drop in prices leads to leveraged people getting margin calls which further leads to a chain reaction of selling further dropping of the prices. This further creates fear in the market and the weak
players start selling.
I fell one must remember that even though a bull market will raise the prices of the stock, a company would take its own time to perform.
Signs of bear market:
Valuations are most reasonable
Public participation is minimum
Leverage is very small
Sense of uneasiness around
Valuations are most reasonable
Public participation is minimum
Leverage is very small
Sense of uneasiness around
Sectors that recover first(In order):
Auto Companies: As people who were delaying their purchases have now started buying.
Banking Sector: The probability of bad assets reduces and businesses start to perform. An increase in economic activity also encourages expansion...
Auto Companies: As people who were delaying their purchases have now started buying.
Banking Sector: The probability of bad assets reduces and businesses start to perform. An increase in economic activity also encourages expansion...
...which leads to further loans.
Industrial companies: For expansion you would need to buy machinery
Cyclicals
Industrial companies: For expansion you would need to buy machinery
Cyclicals
Identifying The Next Big Trend:
Most investors remain focused on trying to find the next
big trend rather than participate in the ongoing one.
Here are some trends:
There is always a bull market somewhere: in some asset class
Whatever happens globally happens in India
Most investors remain focused on trying to find the next
big trend rather than participate in the ongoing one.
Here are some trends:
There is always a bull market somewhere: in some asset class
Whatever happens globally happens in India
New Sector for each bull market
Above average growth of company and industry
Scale of opportunity
First generation entrepreneurs
Stocks hitting all time high
Small Market Cap
Relatively Expensive Valuation
illiquid and unpopular
Lack of entry barriers
Above average growth of company and industry
Scale of opportunity
First generation entrepreneurs
Stocks hitting all time high
Small Market Cap
Relatively Expensive Valuation
illiquid and unpopular
Lack of entry barriers
Bear market IPO's
Pickaxe and Shovel Theme: If ecommerce increases Blue Dart like companies will benefit.
Pickaxe and Shovel Theme: If ecommerce increases Blue Dart like companies will benefit.
Part C: Company and Financial Analysis
Understanding Business Models:
A good business is which purchases on credit and sells on cash.
Purchasing on credit shows competition among suppliers
Selling on cash shows buyers are weak and dispersed
Understanding Business Models:
A good business is which purchases on credit and sells on cash.
Purchasing on credit shows competition among suppliers
Selling on cash shows buyers are weak and dispersed
This also means that business is running on float money: Negative working capital.
Business Models:
Entry Barriers
Brands
Market share vs Mindshare: Mindshare means the customer itself comes to buy the product
Business Models:
Entry Barriers
Brands
Market share vs Mindshare: Mindshare means the customer itself comes to buy the product
Franchise led growth
Such businesses need less capital
Changing the metric of measurement
Buying commodity and selling brands
Such businesses need less capital
Changing the metric of measurement
Buying commodity and selling brands
High gross margins: But we need to remember as @Sanjay__Bakshi said in his lecture a high gross margin could also make a business fragile as it could sooner or later attract competition and kill those margin.
Refer to my notes here:
Refer to my notes here:
https://twitter.com/badola_arjun/status/1298566848120647680?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed&ref_url=notion%3A%2F%2Fwww.notion.so%2F69d9177677254782b515828d3e364f87%3Fv%3Dc325de1b8468443a8ba8fa5b44bac00a%26p%3D3dfcb0af29724bb5adddd429c93b0da2
Government Lease
Patents
Low cost of production and economics of scale
Large Upfront Capital Expenditure
Network Effect and Switching costs
Product Penetration and Distribution Network
Low Priced Items
Possibility of Postponements
Patents
Low cost of production and economics of scale
Large Upfront Capital Expenditure
Network Effect and Switching costs
Product Penetration and Distribution Network
Low Priced Items
Possibility of Postponements
Products whose buying cannot be postponed: Ex: Toothbrush, medicines, etc.
When Does an Acquisition Work Out & When It Doesn't
Acquisition:
Generally signal that company is moving towards slow growth phase.
When Does an Acquisition Work Out & When It Doesn't
Acquisition:
Generally signal that company is moving towards slow growth phase.
The ROCE gets diluted because the cash held under investments do not form part of the capital employed whereas if this cash is used in an acquisition it will included.
Therefore, if a business has less ROCE than the current one the ratio will fall.
Therefore, if a business has less ROCE than the current one the ratio will fall.
Is Your Company Taking Up The Market Share?:
If your company is has a revenue growth more than the competitor and the rate at which the market is expanding then your company is eating up
market shares of competitors
If your company is has a revenue growth more than the competitor and the rate at which the market is expanding then your company is eating up
market shares of competitors
But do keep probability in mind If there is growth at the cost of dilution of equity then its not a good sign.
The Leader is always first to gain market share when new competitor spreads the product awareness.
The Leader is always first to gain market share when new competitor spreads the product awareness.
An unorganized sector suffers from lack of operating efficiencies, financial support and are generally family business who don't want to expand.
Evaluating the management of a business:
Buying an expensive business managed by an honest
management fetches better results then one managed by suspicious people.
Importance of being with a good management diminishes in a bull market but increase manifold in a bearish one.
Buying an expensive business managed by an honest
management fetches better results then one managed by suspicious people.
Importance of being with a good management diminishes in a bull market but increase manifold in a bearish one.
A dishonest management never runs a debt free
company.
Some ways to evaluate management:
Over ambitiousness of the management can be understood if they bring a lots of IPOs from the group company. Like: Kishore Biyani's Future Group.
company.
Some ways to evaluate management:
Over ambitiousness of the management can be understood if they bring a lots of IPOs from the group company. Like: Kishore Biyani's Future Group.
Mergers or takeover of companies that are related to the promoters
Honest management always pays taxes and keeps a good dividend payout
Exorbitant salary payments
First generation promoters
Transparency in the AR
People seldom change
Honest management always pays taxes and keeps a good dividend payout
Exorbitant salary payments
First generation promoters
Transparency in the AR
People seldom change
Operating Leverage- Looking For Margin Expansion:
Operating leverage: When a company expands output it adds less to its fixed costs and hence the increase in revenue creates a more than proportionate increase in profits.
Operating leverage: When a company expands output it adds less to its fixed costs and hence the increase in revenue creates a more than proportionate increase in profits.
Companies with a high gross margin and a low net margin are more likely to experience an expansion in margins.
How Companies Cook Books Of Accounts?:
A company which manipulates its numbers would generally show either lower revenues, higher expenses or a larger block of...
How Companies Cook Books Of Accounts?:
A company which manipulates its numbers would generally show either lower revenues, higher expenses or a larger block of...
...fixed assets.
The fixed assets are valued at higher rated due to over invoicing of assets.
Dividends and taxes are good indicators for quality of earnings as they need to be paid in hard cash.
Beware of frequent equity dilutions
The fixed assets are valued at higher rated due to over invoicing of assets.
Dividends and taxes are good indicators for quality of earnings as they need to be paid in hard cash.
Beware of frequent equity dilutions
The rate of increase in inventory and receivables should not exceed the rate of increase in revenues
Change in auditor or too many related party transactions are also red signs
Change in auditor or too many related party transactions are also red signs
Stocks To Avoid:
It is more important to avoid losers than finding winners as if a stock that halves in price needs to double up for the investor to break even.
Chances of making money multiplies manifold with a focused company rather than one which is running multiple business
It is more important to avoid losers than finding winners as if a stock that halves in price needs to double up for the investor to break even.
Chances of making money multiplies manifold with a focused company rather than one which is running multiple business
Stocks to avoid:
Growth through repeated dilution of equity or debt
Unnecessary diversification
Lots of acquisitions
Large Market cap in relation to the size of the sector
Stocks making new lows
Growth through repeated dilution of equity or debt
Unnecessary diversification
Lots of acquisitions
Large Market cap in relation to the size of the sector
Stocks making new lows
Untested business models
Cheap second line stocks in later stage of bull market
Leading stocks from the leading sector of previous bull market
Cyclicals that are performing too well
Wide coverage relative valuation and priced for perfection
Too much showcasing
Cheap second line stocks in later stage of bull market
Leading stocks from the leading sector of previous bull market
Cyclicals that are performing too well
Wide coverage relative valuation and priced for perfection
Too much showcasing
Drivers Of A P/E Ratios:
Businesses that get higher PE
Having predictable and sustainable earning
High entry barriers
Positive cash flow
Businesses that get higher PE
Having predictable and sustainable earning
High entry barriers
Positive cash flow
Part D: Buying and Selling Strategies:
Should a small investor always stick to small cap stocks:
If buying small and micro caps is the way to riches it is
also the path to bankruptcy.
But if one finds few good small caps they could change one's life.
Should a small investor always stick to small cap stocks:
If buying small and micro caps is the way to riches it is
also the path to bankruptcy.
But if one finds few good small caps they could change one's life.
Small cap companies without entry barriers are not suitable as these companies don't have the ability to become a large cap.
A company must have revenues of at least Rs.100 cr as it works as a proof that their business model works.
A company must have revenues of at least Rs.100 cr as it works as a proof that their business model works.
Multibaggers From Small and Mid Cap Stocks:
The number of times a stock could go up in the future is dependent on its earnings growth and not on the number of times it has moved up in the past.
The trigger for multibaggers will be growth and scalability of the company and...
The number of times a stock could go up in the future is dependent on its earnings growth and not on the number of times it has moved up in the past.
The trigger for multibaggers will be growth and scalability of the company and...
...not at what valuation is it available.
For example: when a company keeps taking away market share from the organized sector. VIP Industries or Safari could fall into this.
Small cap companies that are not leaders in their sector have a risk of slipping down the delivery...
For example: when a company keeps taking away market share from the organized sector. VIP Industries or Safari could fall into this.
Small cap companies that are not leaders in their sector have a risk of slipping down the delivery...
...and execution of earnings.
But if the sector itself is very huge then you might not need a leader. Ex: SUN TV vs ZEE
No equity dilution + less/no debt and increases revenue with operating leverage is sure shot multibagger.
But if the sector itself is very huge then you might not need a leader. Ex: SUN TV vs ZEE
No equity dilution + less/no debt and increases revenue with operating leverage is sure shot multibagger.
You need to check whether the management is competent because often small cap don't have resources to hire professional managers.
A promoter whose incentive is not management compensation but company's performance would be the best one. Ex: Ambika Cotton Mills
A promoter whose incentive is not management compensation but company's performance would be the best one. Ex: Ambika Cotton Mills
Temporary down in profitability due to advertising or capex done should not be given much importance.
Checklist according to Basant:
1. ROE > 30%: earns such ratios it will definitely will be face with competition in the future as it would attract other players.
Checklist according to Basant:
1. ROE > 30%: earns such ratios it will definitely will be face with competition in the future as it would attract other players.
2. No dilution of equity and less/no debt
3. Debt should be less than 50% of the net worth
4. Positive cash flow
5. Dividend yield is 1.5 to 2%: But this won't apply for illiquid stocks.
3. Debt should be less than 50% of the net worth
4. Positive cash flow
5. Dividend yield is 1.5 to 2%: But this won't apply for illiquid stocks.
Small cap companies are the ones which could lead you
to early retirement but such companies also have
potential to put you back to work from retirement.
to early retirement but such companies also have
potential to put you back to work from retirement.
When to Catch A falling Knife and When Not to?:
The argument that an investor should buy stocks on a
decline isn't as important as the argument as to what
stocks he should actually buy.
The argument that an investor should buy stocks on a
decline isn't as important as the argument as to what
stocks he should actually buy.
He divides stocks into three categories
1. A high quality company in a low quality sector(Infrastructure)
2. A high quality company in a high quality sector(consumer)
3. A low quality company in a low quality(Real Sector)
1. A high quality company in a low quality sector(Infrastructure)
2. A high quality company in a high quality sector(consumer)
3. A low quality company in a low quality(Real Sector)
An investor should always stay away from this one as it has the potential of maximum damage.
Having a part owner mindset sometimes backfires and you tend to not sell when the fundamental starts deteriorating and you start to rationalize it.
Having a part owner mindset sometimes backfires and you tend to not sell when the fundamental starts deteriorating and you start to rationalize it.
Basant had taken a long position in Voltas and the stock was falling. So, he used to go on long walks and used to counter the number of Voltas AC around his area. which gave him confidence not to sell. But it was a mistake as he realized that AC contributed only 30% of revenue.
A high growth company rarely goes back to the high growth stage after it starts to slow down on the growth curve.
High quality stocks rarely become cheap so trying to buy them as bargains is a strategy that never works out as much as it is debated.
High quality stocks rarely become cheap so trying to buy them as bargains is a strategy that never works out as much as it is debated.
The believers of a story generally get in early before the bottom and have to bear the pain before the gain.
It is always easy to bring down a house than to build it
up!
It is always easy to bring down a house than to build it
up!
The Ones I Saw And Missed:
An investor who always regrets his misses is like a person
who repents about every girl he saw but did not marry!
United Spirits-
Lesson: Even though this stock went up 50 times Basant would still not buy a company with a shady management
An investor who always regrets his misses is like a person
who repents about every girl he saw but did not marry!
United Spirits-
Lesson: Even though this stock went up 50 times Basant would still not buy a company with a shady management
Nagarjuna Construction-
Lesson: If a stock moves up like 15% it does not mean it can't move further.
Aban Offshore-
Lesson: It is better to buy a mediocre business with lots of tailwind than a great business with lots of headwinds
Lesson: If a stock moves up like 15% it does not mean it can't move further.
Aban Offshore-
Lesson: It is better to buy a mediocre business with lots of tailwind than a great business with lots of headwinds
Bharti Airtel-
Lesson: If there is a problem like company not being profitable, you could enter when the company becomes profitable. It is never too late to buy a good stock or sell a bad one.
Lesson: If there is a problem like company not being profitable, you could enter when the company becomes profitable. It is never too late to buy a good stock or sell a bad one.
Kaveri Seeds-
Lesson:
1. If the financials are good and the business is debt free with high ROCE and promises average growth then one can buy a little without trying to understand a great deal about the business.
Lesson:
1. If the financials are good and the business is debt free with high ROCE and promises average growth then one can buy a little without trying to understand a great deal about the business.
2. A debt free business with high ROCE is the first signal to a robust business model.
3. A person learns more about a business after he has bought the stock than he does before buying it.
4. One should not worry about missing an opportunity as if one goes the next one will come
3. A person learns more about a business after he has bought the stock than he does before buying it.
4. One should not worry about missing an opportunity as if one goes the next one will come
When To Sell and When Not To?:
Love your family not your stock
Selling is making an educated guess.
Reasons to sell
1. Opportunity Cost
2. Extended valuations: If market cap of a company is low compared to growth opportunity ahead then a high P/E does not matter.
Love your family not your stock
Selling is making an educated guess.
Reasons to sell
1. Opportunity Cost
2. Extended valuations: If market cap of a company is low compared to growth opportunity ahead then a high P/E does not matter.
3. A bull sector loosing favor: To make money it is not necessary to buy at the bottom or sell at the top. But if someone gets stuck in the fall, it is better to fall with the
leader rather than with a laggard.
leader rather than with a laggard.
4. Change in original thesis: Change in fundamentals, management not executing, or Government policy. Take immediate action - irrespective of your purchase price.
A question to ask is whether you would have bought that
stock if you would have had this information at first
place.
A question to ask is whether you would have bought that
stock if you would have had this information at first
place.
5. New competitor
6. General business slowdown
7. Portfolio Skewness due to movement of one stock
8. One should not look at the price of after selling a stock as it could affect you emotional.
6. General business slowdown
7. Portfolio Skewness due to movement of one stock
8. One should not look at the price of after selling a stock as it could affect you emotional.
Part E: Analyzing Sectors and Industries
Basic Economy Stocks, Diversified Businesses and Spinoffs:
Basant considers Tea as pure commodity play but with an exception. If the company gets into branding its product and making value products like green tea or herbal tea.
Basic Economy Stocks, Diversified Businesses and Spinoffs:
Basant considers Tea as pure commodity play but with an exception. If the company gets into branding its product and making value products like green tea or herbal tea.
I feel CCL Products ltd is exactly what he is talking about.
They are getting into branded business. They are making products like Freeze Dried, Spray Dried, Premix, etc.
They are getting into branded business. They are making products like Freeze Dried, Spray Dried, Premix, etc.
Basant warns about investing in companies who sales depend on others. Like Munjal Showa
Power Sector is highly regulated which makes it difficult for the company to generate high returns. Therefore, if someone want to play power sector theme then one must bet on equipment...
Power Sector is highly regulated which makes it difficult for the company to generate high returns. Therefore, if someone want to play power sector theme then one must bet on equipment...
...manufacturers.
Similar to the story of selling Shovel when everybody is digging for gold.
Analyzing Companies With Cash on Balance Sheet:
Why market discounts cash?
1. Due to questionability on existence of cash
2. Earn less than the operating business
Similar to the story of selling Shovel when everybody is digging for gold.
Analyzing Companies With Cash on Balance Sheet:
Why market discounts cash?
1. Due to questionability on existence of cash
2. Earn less than the operating business
3. Holding cash is a double edge sword. It saving you during bear market but pulls you down in bull.
Analyzing Holding Companies:
If you want to make money in holding company then you need to be bullish on the subsidiaries'.
Analyzing Holding Companies:
If you want to make money in holding company then you need to be bullish on the subsidiaries'.
The gap between them them should be large enough because holding companies always remain undervalued.
Unless it owns a private company which is doing quite well like, info edge owns stake in Zomato.
PSU Stocks:
You need two things in PSU
1. Cheapness
2. Tailwind
Unless it owns a private company which is doing quite well like, info edge owns stake in Zomato.
PSU Stocks:
You need two things in PSU
1. Cheapness
2. Tailwind
Analyzing Secular Growth Stocks:
Pricing power- If a company can increase its price every year 6-8% or, retain its price with the input cost are low.
But business growth is more important because prices can be raised only till a certain point.
Pricing power- If a company can increase its price every year 6-8% or, retain its price with the input cost are low.
But business growth is more important because prices can be raised only till a certain point.
Breaking the product into smaller sizes is an amazing way to retain customers. As the products becomes affordable.
Some Traits of a secular growth company:
1. Expensive
2. Long business life
3. Generating free cash flow
Some Traits of a secular growth company:
1. Expensive
2. Long business life
3. Generating free cash flow
Part F: Constructing a Portfolio
Portfolio construction strategies:
Large wealth creation opportunities don't come too often
and when they do they should have the power to make a
difference on investor's balance sheet.
Portfolio construction strategies:
Large wealth creation opportunities don't come too often
and when they do they should have the power to make a
difference on investor's balance sheet.
Diversification vs Concentration:
Concentration- Advantages
1. Reduces changes of making wrong decision as you chose your investment very carefully.
2. Better risk management as you bet large on few stocks, you tend to be alert and move out with the first sign of trouble.
Concentration- Advantages
1. Reduces changes of making wrong decision as you chose your investment very carefully.
2. Better risk management as you bet large on few stocks, you tend to be alert and move out with the first sign of trouble.
Disadvantages:
1. It sometimes becomes difficult to get out of the stocks due to illiquidity, but if you have a small portfolio then this should not be a problem as big money is made here.
2. Needs confidence and good knowledge about the company, as you cannot afford to loose.
1. It sometimes becomes difficult to get out of the stocks due to illiquidity, but if you have a small portfolio then this should not be a problem as big money is made here.
2. Needs confidence and good knowledge about the company, as you cannot afford to loose.
Diversification- Advantages:
1. It provides you with higher level of excitement as there are many companies about which you need to keep yourself updated with. On the other hand having few stocks means most of the times you need to do nothing which makes it boring.
1. It provides you with higher level of excitement as there are many companies about which you need to keep yourself updated with. On the other hand having few stocks means most of the times you need to do nothing which makes it boring.
2. Can compensate any of your mistakes made as you can afford to loose here.
Disadvantages: Lowers the average quality of companies you hold.
Disadvantages: Lowers the average quality of companies you hold.
That's all from my side do share it if you enjoyed reading it. 😊
Tagging some people I admire for further reach. (Please don't mind)
@Sanjay__Bakshi @dmuthuk @Vivek_Investor @MashraniVivek @VijayKedia1 @ms89_meet @Dinesh_Sairam @BMTheEquityDesk @FI_InvestIndia @AnyBodyCanFly @safiranand @unseenvalue @shyamsek @theBuoyantMan
@Sanjay__Bakshi @dmuthuk @Vivek_Investor @MashraniVivek @VijayKedia1 @ms89_meet @Dinesh_Sairam @BMTheEquityDesk @FI_InvestIndia @AnyBodyCanFly @safiranand @unseenvalue @shyamsek @theBuoyantMan
@SmartSyncServ How can I forget you! 😁
• • •
Missing some Tweet in this thread? You can try to
force a refresh
