Sales growth matters more then everything

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Topic: Sales growth matters more then everything

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subu76
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Topic: Sales growth matters more then everything
Posted: 13/Jun/2010 at 6:28pm

Originally posted by basant

Correction - Buying a great business nearer to its maturity and at a bad price.

Basant Ji, what could a lay investor have done to avoid this one?

My choice is:

Perhaps you don't want to go with a company which is struggling to increase it's top line and is beseized with competition from price warriors.

Right now Bharti's name is coming to my mind as another company exactly at the same place where HLL was 10 years back

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basant
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Posted: 13/Jun/2010 at 7:53pm

Focused on whether the PAT is increasing because of operating efficiencies or due to growth in sales. One can increase efficiency only upto a point and not beyond it.

Originally posted by subu76

Originally posted by basant

Correction - Buying a great business nearer to its maturity and at a bad price.

Basant Ji, what could a lay investor have done to avoid this one?

My choice is:

Perhaps you don't want to go with a company which is struggling to increase it's top line and is beseized with competition from price warriors.

Right now Bharti's name is coming to my mind as another company exactly at the same place where HLL was 10 years back

'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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subu76
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Posted: 13/Jun/2010 at 9:32pm

Originally posted by basant

Focused on whether the PAT is increasing because of operating efficiencies or due to growth in sales. One can increase efficiency only upto a point and not beyond it.

Originally posted by subu76

Originally posted by basant

Correction - Buying a great business nearer to its maturity and at a bad price.

Basant Ji, what could a lay investor have done to avoid this one?

My choice is:

Perhaps you don't want to go with a company which is struggling to increase it's top line and is beseized with competition from price warriors.

Right now Bharti's name is coming to my mind as another company exactly at the same place where HLL was 10 years back

Thanks for your answer. I guess Agrotech is one such candidate for me to look out for.

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deepinsight
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Joined: 18/Sep/2006
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Posted: 13/Jun/2010 at 10:16pm

Would ESAB fall in the same category? Wonderful business characheteristics without growth in sales?

However, in case of ESAB they could be in a sweet spot if industrial capex spurts up (expected).

"Investing is simple, but not easy." - Warren Buffet

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Raffaella
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Joined: 15/Jul/2011
Location: United States
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Posted: 16/Jul/2011 at 11:51am

Do business is see brains.......

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