Month: May 2019

This is the third post in our quarterly update series for Q4 FY19.

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 future. The purpose of this post is to bring clarity in 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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Recently, I wrote a post where we got to know about a few patterns which help us identify emerging moats in the Indian stock market.

Now, we will review Balkrishna Industries and see if it fits into any of the patterns discussed in our previous post. Before proceeding ahead, let’s list down the four patterns to look for in an emerging moat to refresh our memory:

1. Fixing Past Misallocation mistakes.
2. Intelligent initiatives artificially suppressing the earnings.
3. Geographical expansion pulling down the near term earnings.
4. Inorganic growth by buying businesses at bargain value and then turning them around.

I am not going to deep-dive into Balkrishna Industries (BKT) here. I wrote a report on BKT in 2014 for Safalniveshak. You may find it here. Recently, the Finception team wrote an awesome post on BKT which I would highly recommend.

Purpose of this post is only limited to finding out whether BKT is following any of the above mentioned patterns or not.

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This is the second post in our quarterly update series for Q4 FY19.

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 future. The purpose of this post is to bring clarity in 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

This is the first post in our quarterly update series for Q4 FY19.

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 future. The purpose of this post is to bring clarity in 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

Prof Sanjay Bakshi needs no introduction to the value investment community of India. He has a big fan following across the globe.  Prof. Bakshi teaches a very popular course titled Behavioral Finance and Business Valuation to MBA students at Management Development Institute in Delhi, India. He has shared invaluable content on investing in stock market on his blog and youtube channel which can be a guide to anyone who is just starting up his investment career.  Recently, I came across a podcast of Prof. Bakshi, which gives away pearls of wisdom, especially for equity investors.

The podcast touches on the following:

• How to factor disruption technologies into your investment thesis
• How to locate an emerging moat for a business
• Why we should evaluate our stock performance using stress adjusted returns
• How to read Warren Buffett’s letters to shareholders
• Ask The Investors: How do I choose the best stock broker?

I would highly recommend you to listen to this episode of The Investor Podcast by Preston Pysh and Stig Brodersen.

This post, however, focuses only on the point of locating an emerging moat for a business. In the subsequent posts in this series, we’ll look at examples of Indian listed companies from this emerging moat lens.

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