Focusing on the right sectors is half the battle won in finding the right companies. - Samit Vartak
What are the differences between a gruesome and a good quality business?
Good quality business is one where there is a big gap between that business and the rest of its competitors.
Good quality business is one where there is a big gap between that business and the rest of its competitors.
What are the key questions that you ask yourself before buying a business? 
Understanding the business is the most important aspect of investing
If the market perceives a business to be commoditized (and accordingly valued) and if your analysis/evaluation shows that it’s a specialized business, that’s one of the key ingredients for a multi-bagger.
If the market perceives a business to be commoditized (and accordingly valued) and if your analysis/evaluation shows that it’s a specialized business, that’s one of the key ingredients for a multi-bagger.
If a company has reasonable ROCE/ROE and a huge opportunity for reinvestment at incrementally higher ROE/ROCE, most often the stock goes through a huge re-rating on valuation.
When you study a business, one has to evaluate how deep and wide are the competitive advantages and whether they are sustainable. Every industry needs to be looked at differently.
Investors tend to move too much in herds as almost everyone has the same information and feels bullish/bearish at the same time. Investors gain more confidence by price action and by having company (herd) than by fundamentals of the business.
Size attracts competition and can kill margins. Important to have huge barriers to entry that protects from competition taking away market share
Valuation
the duration of high growth has a huge impact on the eventual PEx
Everything else doesn’t stay the same. Inflation drops, growth drops, and hence future cash flow
the duration of high growth has a huge impact on the eventual PEx
Everything else doesn’t stay the same. Inflation drops, growth drops, and hence future cash flow
As a Fund Manager
Generating performance as a fund manager is multiple times more difficult than generating it as an individual. I have experienced both for many years.
Generating performance as a fund manager is multiple times more difficult than generating it as an individual. I have experienced both for many years.
Key Takeaways are taken from the interview by @soicfinance with @SamitVartak
Thanks a lot for sharing great learning and many case studies with us
Thanks a lot for sharing great learning and many case studies with us
Full Interview: soic.in/blog-descripti…
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