Month: June 2020

When most businesses in India are focused on surviving Covid-19, it is a good time to invert the situation and think about companies that are still managing to proceed with their CapEx plans.

Companies that can invest in CapEx today get better bargains as prices are depressed due to low economic activity, creating a sustainable advantage for them over time.

Investopedia defines Capex as follows:

Capital expenditures, commonly known as CapEx, are funds used by a company to acquire, upgrade, and maintain physical assets such as property, buildings, an industrial plant, technology, or equipment. CapEx is often used to undertake new projects or investments by the firm. Making capital expenditures on fixed assets can include everything from repairing a roof to building, to purchasing a piece of equipment, to building a brand new factory. This type of financial outlay is also made by companies to maintain or increase the scope of their operations. Put differently, CapEx is any type of expense that a company capitalizes, or shows on its balance sheet as an investment, rather than on its income statement as an expenditure.

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This is the ninth post in our quarterly update series for Q4 FY20.

In this post, we’re sharing the latest updates of the stocks from our watchlist. Please don’t treat this as a buy recommendation. We find these businesses interesting and we may build position (or buy more of those that are already in our portfolio) in them in the future. The purpose of this post is to bring clarity to our understanding of the businesses we are tracking.  We make our notes on the quarterly results and conference calls. Putting it up here makes it easier for us to refer them at a future date.

You can see the earlier updates here.

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This 2-minute video of the legendary investor Parag Parikh has been watched by many of us.

He says:

There are certain universal principles in life which don’t change even if people change, times change, technology changes, geography changes. There is one thing, like the law of the farm. You cannot sow something today and reap tomorrow. Every seed which is sown will have to go through different seasons. It will take time before the seed becomes a fully grown tree.

While Mr. Parikh has made a very important point about the law of the farm, I believe most investors make the mistake of taking the wrong lesson from it. And I have no shame in admitting that I have been one of them in the past. Read More

This is the eighth post in our quarterly update series for Q4 FY20.

In this post, we’re sharing the latest updates of the stocks from our watchlist. Please don’t treat this as a buy recommendation. We find these businesses interesting and we may build position (or buy more of those that are already in our portfolio) in them in the future. The purpose of this post is to bring clarity to our understanding of the businesses we are tracking.  We make our notes on the quarterly results and conference calls. Putting it up here makes it easier for us to refer them at a future date.

You can see the earlier updates here.

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This is the seventh post in our quarterly update series for Q4 FY20.

In this post, we’re sharing the latest updates of the stocks from our watchlist. Please don’t treat this as a buy recommendation. We find these businesses interesting and we may build position (or buy more of those that are already in our portfolio) in them in the future. The purpose of this post is to bring clarity to our understanding of the businesses we are tracking.  We make our notes on the quarterly results and conference calls. Putting it up here makes it easier for us to refer them at a future date.

You can see the earlier updates here.

Read More