Intelligent Investing in India: October 2014

Evolution of an investors

pic.twitter.com/U0pRxfdygO
— Amit Arora (@amitdipsite) October 10, 2014

How Maggi has got its competitors in knots

http://m.economictimes.com/magazines/brand-equity/food-for-thought-how-maggi-has-got-its-competitors-in-knots/articleshow/44957947.cms?curpg=2

Takeaways from interview of Porinju with ET

Takeaways from interview of Porinju on ET

DLF (CMP: 118):

DLF fallen off the cliff because of 1) SEBI ban for 3 years from accessing capital markets 2) Govt will probe alleged irregular deals with Robert Vadra.
The other investors are 'scared' to look at DLF is the cue for a 'value investor' to grab the stock.
"These nagatives are actually an oppurtunity to buy into great asset at a throw-away price" - Porinju

South Indian Bank (CMP: 27):

It's attractive given its valuations, geographgy and scale of operation.
[Kamlesh: Mohnish Pabrai has recently invested in his stock recently. Other big names invested in stocks are Billionere MA Yussufali and Renuka Ramnath]

Nitta Geletin (CMP: 186):

JV between Keral Govt and Nittal Geletin of Japan.
He cautined that it is very illiquid stock and hence price movements can be very volatile.

Real Estate stocks:

As per Porinju, Godrej Properties, Sobha Developers, Oberoi Reality are some good names with ethical prmoters, quality management, and clean balance sheet.

Recommendation in Megacaps:

Among Mega caps, Porniju recommends Hindustan Petrolium Corporation (CMP: 519), Reliance Industries (CMP: 951) given discount to intrincic value.

Prepare for future

Check out @Anil_Tulsiram's Tweet: https://twitter.com/Anil_Tulsiram/status/527318933586857984?s=09

This is so true in ongoing bull market.

Value investing and VC frame of mind

Value investing + Venture Capital frame of mind [concentration, power law, LT view &focus on multi-baggers] = successful creation of wealth

In a competitive environment, If Incremental marginal cost is zero then price of it will drop to zero. Moat is necessary to sustain price of service.

1/ If you sell service X that has an incremental marginal cost of $0, price of service X tends to drop to $0 or less (unless moat exists).
— Tren Griffin (@trengriffin) October 28, 2014

Hindustan Unilever :: Q2 results indicate Softening rural demand

Hindustan Unilever results first signs of softening rural demand.

Low agri product prices likely to put rural consumption under severe pressure.

CMP is 715 after correction of 6% because of posting weak q2 result.

At 560 it offers good value.

Take leap of faith

Your fear rises the most before you take the leap. Remember that calm quickly follows that leap. #perspective
— Robert T. Kiyosaki (@theRealKiyosaki) October 28, 2014

Bharat Petroleum Corporation

New Position add-BPCL.Rationale 1)BREAKOUT life highs 2)Macro subsidy reduction 3)Retail fuel /travel spending hedge http://t.co/xKhIBjAzda
— The Fixer (@SaanpaurSeedi) August 27, 2014

Twitter debate on Owner Earnings

This quote is the holy grail on earnings. But, Mr. Buffett inadvertently made a mistake. Can you spot it? pic.twitter.com/Ale3INMwzg
— Sanjay Bakshi (@Sanjay__Bakshi) August 2, 2014

Still Not Too Late To Buy Stocks: Prashant Jain

Still Not Too Late To Buy Stocks: Prashant Jain http://t.co/XfY9i5WD5u
— RJ Stocks (@RakJhun) October 28, 2014

Kajaria Ceramics

Daljeet Kohli Changes Mind On Kajaria Ceramics & Revokes Sell Call http://t.co/rNbKh455kA
— RJ Stocks (@RakJhun) October 28, 2014

More upgrades than downgrades by CRISIL

Good News: First time in 3 years Crisil upgrades credit ratings of more companies than it downgrades @bibekdebroy pic.twitter.com/0xPYp3GyuM
— Uday Tharar (@udaytharar) October 28, 2014

Twitter debate on great business

The best business to own is one that over an extended period can employ large amounts of incremental capital at very high rates of return.
— Jana Vembunarayanan (@jvembuna) October 28, 2014

Save Income Tax : buying energy efficient home appliances

Many people think they cannot get tax benefit when they buy home appliances, but this is not true. India is a huge country and it is energy starved. So to promote people to save energy Govt gives tax benefit on purchase of energy efficient home appliances. To get tax benefit on such thing you have to buy appliances that carry the government’s energy star rating Now When you require new appliances for your home, such as a hot water heater, be sure to look for appliances that carry the government’s energy star rating. Items purchased with the energy star rating are eligible for tax deductions. In addition, when you replace your old appliances with energy efficient ones, you’ll save money every month on your utility bills. So investment in this saves double money.

Japan's SoftBank kicks off $10 billion India online spree, buys stake in Snapdeal. Softbank Group to invest Rs 3,762 crore in Snapdeal

Source:
http://indiatoday.intoday.in/story/softbank-group-to-invest-rs-3762-crore-in-snapdeal/1/397845.html

http://in.reuters.com/article/2014/10/28/softbank-snapdeal-idINKBN0IH06X20141028

Softbank makes $210 million investment in Indian cab service 'Olacabs'

Source:
http://www.dnaindia.com/money/report-softbank-makes-210-million-investment-in-indian-cab-service-olacabs-2029986

Fall of Gold and Gold ETFs

Investors are constantly trying to assign a reason to the market’s moves and I’m sure there are many legitimate narratives for gold’s fall and the S&P 500’s rise. However, the simplest explanation is usually the correct one, and in this case it’s mean reversion. Gold couldn’t rise in a straight line forever (although some would have you believe it will) and U.S. stocks weren’t going to crash forever either.

Mean reversion is conceptually simple to grasp, but harder to figure out in real-time as the mean for most markets and valuation levels is probably a moving target and the timing of the reversion is always subject to change.

But if you understood nothing more than the fact that the markets and the economy move in cycles you would be far ahead of the majority of investors.

Source:
http://awealthofcommonsense.com/shine-gld/

Intelligent Investing in India