Short Thread

Investment process Is first and foremost about business and only business.

More you read, research, read and understand about business, better you would be able to progress in your investment & growth journey.
Business.

Understand the business in terms of it's
~ Past growth
~ Current performance
~ Future survival
~ Future potential

Understanding of one business will help you understand many connected businesses.
Very few parameters to understand business

~ Is it Capital Intensive
~ Type of customer - B2B or B2C or both
~ Is it into daily usage thing, a must consumption
~ Is it into must consumption, but not daily usage
~ Is it easily replaceable (entry barriers)
~ Is there pricing power
Business.

Read thoroughly about end to end execution of business.
~ Planning
~ Start up Execution
~ Input raw material & it's dependencies
~ Input & Output supply chain
Once you have a reasonable understanding on the type of business, read about people who run the business and who can grow it or fail it.

Management.

~ Is it Honest & Ethical
~ Is it conservative or too aggressive or reasonable aggressive
Management.

~ Does it pay well to employees and to self
~ Are employees happy
~ Are customers happy. Does it treat customers as most valuable stakeholders
~ Does it give importance to research & innovation
~ Does it grow self or it believe in growing thru acquisitions
Management.

~ Does it understand investor's expectations
~ Does it pay honest taxes
~ Is it contributing reasonably towards environment
~ Is it contributing reasonably towards poor & social causes
~ Does it follow good dividend policy
Financials.

Business ultimately is reflected in it's numbers & financials.

~ Is debt reducing & manageable
~ Is promoter having reasonable skin in the game, good promoter stake in the shareholding
~ Is there so much pledging of promoter that it raises concern
Financials.

~ Is there any concern around Receivables or Payables
~ Is there gradually increasing Cash flow
~ Few technical terms that MAY be useful sometimes like RoCE, RoIC, RoE
~ Is there Equity dilution that could have been avoided
~ Revenue & PAT growing satisfactorily
Financials.

~ How have numbers performed during national crisis times ...good, bad, satisfactory
~ Are profit margins being too volatile

Read the thread again and get started with the basics.

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19 Mar
Pharma sector gonna be in demand again. Here is a list of few terminologies & their meanings in very simple words

1. API Active Pharmaceutical Ingredient

~ Combination of key chemicals that make the drug work.
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Create your own luck. Be motivated, be inspired, do the hard work, stick to the basics.

Thread - Take a printout & read it again & again in your leisure.

#life #investing #success #TheSecret
1. Invest some part of your income in yourself

It’s only when you invest in something that you have the motivation to make it happen.

You are determined by

~ The quality of work you’ll produce,
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Stop consuming junk media.

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Short Thread

Investment process Is first and foremost about business and only business.

More you read, research and understand about business, better you would be able to progress in your investment & growth journey.
Business

Understand the business in terms of it's
~ Past growth
~ Current performance
~ Future survival
~ Future potential
~ Sustainability
~ Competition
~ Predictability
~ Monopoly nature /Any moat

Understanding of one business will help U understand many connected businesses
Very few parameters to understand business

~ Is it Capital Intensive
~ Type of customer - B2B or B2C or both
~ Is it into daily usage thing, a must consumption
~ Is it into must consumption, but not daily usage
~ Is it easily replaceable (entry barriers)
~ Is there pricing power
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He is known as stock guru & Warren Buffet of India.

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Thread on ITC

ITC is one great case study in FMCG sector.

It gave great returns in past, however poor returns in last 5 years.

A great quality company may not be a good stock always. Can it be a good investment from hereon, here are my thoughts & please research further
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~ Bingo
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~ Flama
~ Vivel
~ Savlon
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~ Homelite
~ Paperkraft
~ Gold Flake
~ Navy Cut
~ ITC Maurya
~ e-Choupal
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2. FMCG (non tobacco) 24%
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4. Agri 20%
5. Paper, Paperboards, Packaging 10%
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