Live tweeting highlights from our discussion with @Iamsamirarora moderated by @dadalife369 and the Investors India gang.
@saketreddy @cautkarshpandey @safiranand @academy_share @mishika_chamria
So let’s begin -
@saketreddy @cautkarshpandey @safiranand @academy_share @mishika_chamria
So let’s begin -
On the duration of investing,
Use 1-3 years as the horizon, because that is the period I can analyse.
- One does not discover a 100 bagger, it became so because we continue to hold because the stock continues to perform
Use 1-3 years as the horizon, because that is the period I can analyse.
- One does not discover a 100 bagger, it became so because we continue to hold because the stock continues to perform
On concentration vs diversification -
- Concentration is a bet on getting lucky.
- Concentrated investing is like betting on constantly winning a lottery.
- Concentration is not a strategy.
- Concentration is a bet on getting lucky.
- Concentrated investing is like betting on constantly winning a lottery.
- Concentration is not a strategy.
How to make investing not completely luck dependant -
- Focus on the process.
- Remember that you don’t anything about anything beyond a point
- To say something is not good is much easier than to say something is good, eliminate the bad.
- Focus on the process.
- Remember that you don’t anything about anything beyond a point
- To say something is not good is much easier than to say something is good, eliminate the bad.
Things to look at while investing -
- theme/size of the opportunity
- disruption (avoid areas that can be disrupted)
- management history
- financials
- medium-term triggers
- accounting
- valuation
- theme/size of the opportunity
- disruption (avoid areas that can be disrupted)
- management history
- financials
- medium-term triggers
- accounting
- valuation
On allocation,
Divide stocks into two camps -
- Reasonable confidence in high return [avg 2% allocation]
- High confidence in a reasonable return. [12-15 stocks at 5-7%]
Total 30-35 stocks
Divide stocks into two camps -
- Reasonable confidence in high return [avg 2% allocation]
- High confidence in a reasonable return. [12-15 stocks at 5-7%]
Total 30-35 stocks
On opportunities -
BSE 500 has 500 stocks - by definition - 45% will beat the index and the rest will underperform.
It cannot be that only 30 companies are beating and 470 are underperforming.
Divide the group into the top 1/3rd and the bottom 2/3rd. Invest in group 1.
BSE 500 has 500 stocks - by definition - 45% will beat the index and the rest will underperform.
It cannot be that only 30 companies are beating and 470 are underperforming.
Divide the group into the top 1/3rd and the bottom 2/3rd. Invest in group 1.
On credit growth,
- 1.5-2x of GDP is the thumb rule. Has to revert to that.
- Fintech to be a front end for the banks.
- Private banks continue to be integral.
- 1.5-2x of GDP is the thumb rule. Has to revert to that.
- Fintech to be a front end for the banks.
- Private banks continue to be integral.
What makes money in India -
Financials, tech, pharma and consumer. Have a look at the Forbes list. That is where these people come from.
They can grow without diluting.
Financials, tech, pharma and consumer. Have a look at the Forbes list. That is where these people come from.
They can grow without diluting.
This is not a substitute for attending live. Just wanted to put this out for those who absolutely could not attend. See you at the next one!
Okay one more - three big themes that Sameer invests in
- Companies competing with government - example Financials
- Middle-class India or Urban India [300million people as opposed to 1 billion] - example consumer stocks
- Technology, pharma and spec chem.
- Companies competing with government - example Financials
- Middle-class India or Urban India [300million people as opposed to 1 billion] - example consumer stocks
- Technology, pharma and spec chem.
Note: Be cautious of valuations in speciality chemicals though.
90% of his portfolio is split into these themes
90% of his portfolio is split into these themes
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