A Thread on India's largest Conglomerate @TataCompanies:
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1) With 7.5 lac employees, it is India’s third-largest employer after the Indian railways and defense forces.
2) Tata Consultancy Services (@TCS ) is the largest private-sector employer in India and one of the top employers globally.
It employs more than 4.5 lac people representing 146 nationalities across 46 countries.
3) They have never invested in the alcohol or tobacco business and have never sponsored any Bollywood movies.
4) In the year 1955, they took part in the Geneva-Bombay Rally, and 3 of the Tata trucks covered ~1200 kilometers non-stop without a single breakdown.
5) It is the only group that has a dedicated city with a railway junction on its name ‘Tatanagar’- Jamshedpur, Jharkhand.
6) Every day ~4.5 crore cups of Tetley tea are consumed across the globe, making Tata Consumer the world’s second-largest tea company.
7) In 1945 when management as a discipline was not fully developed even in Western countries, they set up Tata Industries—the first technocratic structure of our country.
8) In the late-1880s when there was no electricity in India, Empress Mills – Tatas’ flagship textile company, was providing a healthy work environment in its factories through the installation of humidifying systems to protect the health of its employees.
9) Sir Dorabji Tata (second Chairman of Tata Sons) provided cheap and clean energy to Mumbai through hydroelectric power generation in 1910 under the Tata Hydro Electric Company (now @TataPower), a century before the term ‘clean energy’ first became popular.
10) Tatas started the Lakme brand of cosmetics as an outcome of a request from Prime Minister Jawaharlal Nehru.
Lakme started as a 100% subsidiary of Tata Oil Mills and it was named after the French opera Lakmé, which itself is the form of Lakshmi (the goddess of wealth).
11) Tata Group has over 100 operating companies of which 29 are publicly listed in India.
12) They pay ~2.25 % of the total taxation in India making them India's highest taxpayers. (With ~ 4% of the country’s GDP, they are significant contributors to India’s Growth story.)
13) In 1981, @TataChemicals became one of the first companies in India to provide employee stock options.
14) They were the pioneers in introducing provident fund, gratuity, and accident compensation schemes when they were unheard of anywhere in the world.
15) In 1974, when the Chota Nagpur had become the epicenter of the smallpox epidemic, WHO requested help from @TataSteelLtd.
They obliged and in just 6 months, ~20k villages and 82 towns were inoculated and for the first time in history, India was declared free of smallpox.
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1) Warren Buffett:
> Is the business simple to understand?
> Is the management rational with its capital allocation?
> Can the business be purchased at a significant discount to its value?
(1/2)
> Is the management candid with the shareholders?
> Has the company created at least one dollar of market value for every dollar retained?
> Can you see how good the business will be versus the competition 10 years from now?
> Focus on ROE rather than the EPS.
(2/2)
2) Lou Simpson:
> Does management have a substantial stake in the stock of the company?
> Is management straightforward in dealings with the owners?
> Is management willing to divest unprofitable operations?
> Does management use excess cash to buy back/repurchase shares?
Getting Rich vs Staying Rich (A must-read thread):
You must have heard of the Buffett and Charlie.
But 40 years ago there was a third member of the group, Rick Guerin.
Warren, Charlie, and Rick made investments and interviewed business managers together.
Then Rick disappeared.
@MohnishPabrai once asked Buffett what happened to Rick and Warren said, “Charlie and I always knew that we would become incredibly wealthy.
We were not in a hurry to get wealthy as we knew it would happen eventually.
Rick was just as smart as us, but he was in a hurry.
In the 1973–1974 downturn, Rick was on leverage with margin loans and the stock market went down almost 70% in just two years & he got margin calls.
He was forced to sell his Berkshire stock at just $40 per share. (Today, you do know the value of one share of Berkshire right?)
30 books I wish I read before Investing my hard-earned money:
1. You can be a Stock Market Genius by Joel Greenblatt 2. Common Stocks, Uncommon Profits by Phil Fisher 3. Margin of Safety by Seth Klarman 4. The Crowd by Gustave Le Bon 5. Winning the Loser's Game by Charles Ellis
6. The Zurich Axioms by Max Gunther 7. The Most Important Thing by Howard Marks 8. Thinking, Fast and Slow by Daniel Kahneman 9. The Intelligent Investor by B. Graham 10. A Zebra in Lion country by Ralph Wanger and Everett Mattlin 11. Learn to Earn by Peter Lynch
12.Poor Charlie's Almanack - The wit and wisdom of Charles T Munger
13.Speculative Contagion by Frank Martin 14. The Long and the Short of it by John Kay 15. More than you know by Michael Maubossin 16. Influence - The Psychology of Persuasion by Robert Cialdini
17 Most important Lessons from the first book I ever read on Value Investing:
1) Learn to Stand against the Crowd:
Being a value investor usually means standing apart from the crowd, challenging conventional wisdom, and opposing the prevailing ideas. It can get very lonely.
2) Forecasting is a bad strategy:
Those who think who can predict the future should participate fully, using borrowed money, when the market is about to rise and get out of the market before it falls.
3) Simple but NOT easy:
Value investing requires a great deal of hard work, unusually strict discipline, and a long-term investment horizon.