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Ajith
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Joined: 06/Aug/2006
Location: India
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Posts: 1284
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   Posted: 14/Aug/2006 at 10:06am |
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For me after considering basic financials,the quality of management , business potential and the big picture so to say matter more than any financial ratio(ratios only indicate business potential as far as I am concerned) and my selections over the past 20 years has convinced me that this is the right approach.My mistake has been limiting the time horizon for winning stocks.I ought to have followed the legendary Ralph Wagner's dictum -NEVER OMPROMISE ON TIME.
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Vivek Sukhani
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Joined: 23/Jul/2006
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Posts: 6675
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Posted: 14/Aug/2006 at 11:09am |
Reema:
Agree with you in entirety.What financials do, is bring objectivity into decision making.It permits debate. I agree that I am relatively new-comer in this field (although I hail from a family where people drink sleep and eat equities).so, I have had a privilege of getting shared experience which I beleive is so important in this field.
Ajith:
Answer me one thing, the delivery of performance is always measured in financials, right or wrong? So, like a skilled engineer measure the input-output ratio( i.e. in terms of financials). So, the way a company's financials will travel over a period of time, can be gauged in various manner.I have made money by merely tracking dividends and corporate governance.One is purely objective whereas one is totally subjective, so I blend the two before arriving at my decision. Its not that I dont buy what I see. Infact, I have my first post on that and the company that i bought was pidilite. But I bought pidilite and not kitply, bucause of the difference in financials. All that I say is, reward your faith with performance, and if the co. fails in its delivery disregard your faith.....
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basant
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Joined: 01/Jan/2006
Location: India
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Posts: 18403
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Posted: 15/Aug/2006 at 12:00pm |
Seems we have a unique blend of growth and value on board. I think that a person develops conviction and faith after performance. If Pantaloon has made money for me I would believe in growth and vice versa.Mind you the biggest disastors have come from growth stocks as well.This happens when the price factors in all the growth or in Lynch parlance the PEG >1. But over a period of time it would be interesting to see which startegy works.
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'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in
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Vivek Sukhani
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Joined: 23/Jul/2006
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Posts: 6675
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Posted: 15/Aug/2006 at 6:10pm |
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Of all those investors I have come across, I have one of the highest regards for you after my dad and my tauji.It is the sheer understanding which makes you people distinct. What I dont like, I object, like your contempt for mathematicians. Its like this, and I may be accused of repition, Berkshire is what it is today by being an enterprising institution. Its portfolio is a result of master skill. This portfolio is meant for a person who wants to bid adieu to the active participation in stocks.You load your portfolio with stocks like HLL, Procter, ITC, Infosys, Wipro, Larsen, HDFC, SBI, Reliance and I tell you, you will never be able to become active in stocks.You need cyclicals to take advantage of very good times.At the end of 2003, if you would have loaded your portfolio with cyclicals, you would been siting on tremendous gains. Berkshire's portfolio is insulated from shocks, I agree, but is it a good conductor during very good times?
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basant
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Posted: 15/Aug/2006 at 9:33pm |
Vivek :Tried ansewring you on this link:
Edited by basant - 15/Aug/2006 at 9:33pm
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'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in
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Ajith
Senior Member
Joined: 06/Aug/2006
Location: India
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Posts: 1284
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Posted: 15/Aug/2006 at 11:20pm |
My answer is simple-all my big profits have come from thinking skills not analyzing skills ACC in 1989 when cement prices went up but ACC was stagnating below,Lipton in 1992 during the Mehta crash,Niit,Aztec SoftwareETC .But I have suffred setbacks on a small scale as well .
Your way of using finanials as the basis for selection of stocks does have the advantage of even further minimizing setbacks.But many opportunities for huge profits could be missed.
I have changed my short duration strategies 2 years back and have been well rewarded.So now I have fixed an even longer time horizon.If I expect large capital expenditure -as in the case of Nilkamal I have only medium-sized holdings(though I may enhance holdings if I get reliable positive feedback on@home) but in case of Rayban capital requirements are limited and the inherent financial strength has made me put in a substantial investment.So as I type I derive some satisfaction from the fact that I have been subconsciously combining different strategies. |
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kulman
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Joined: 02/Sep/2006
Location: India
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Posts: 9319
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Posted: 30/Oct/2006 at 7:06am |
Click here to find out more on this news.
Buffett's Berkshire buys into J&J and Target
Berkshire Hathaway acquires substantial stakes in the health care manufacturer and big-box discount store chain.
Buffett, the world's second-richest person, prefers investing in industry-leading companies with stable, easy-to-understand businesses and strong management and whose shares appear undervalued.
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Life can only be understood backwards—but it must be lived forwards
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SORUB
Senior Member
Joined: 01/Dec/2006
Location: India
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Posts: 155
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Posted: 31/Jan/2007 at 11:18am |
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very nice discussion going on,but i like to say one thing...buffet's portfolio was not active but he was active...he looked for some risk free income from arbitrages and such opportunities...i read one when he bought huge quantities of silver when silver price was rock bottom
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