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smartcat
Senior Member
Joined: 29/Mar/2007
Location: India
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Posts: 4243
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   Posted: 14/Dec/2007 at 3:54pm |
Yes sir. We can always bank on you for such wise advice.
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tigershark
Senior Member
Joined: 13/Oct/2006
Location: India
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Posts: 3542
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Posted: 14/Dec/2007 at 3:56pm |
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i like to be kanjuice when making guesstimates
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understanding both the power of compound return and the difficulty getting it is the heart and soul of understanding a lot of things
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omshivaya
Senior Member
Joined: 06/Sep/2006
Location: India
Online Status: Offline
Posts: 5966
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Posted: 14/Dec/2007 at 4:18pm |
Originally posted by tigershark
by 2010 one co which is discused regularly by a korean appears may have a PEG ofanywhere between 0.32-0.40 i have taken 2010 eps at 16 and growth at 40% |
Shame Shame puppy shame! Only 40%!!??
Take growth >85% and see the Trailing PE again. Even better, try seeing the forward PE, then "getting jiggy with it" will happen! There is still time for non-TEDdies to discover it, let's see.
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The most important quality for an investor is temperament,not intellect.A temperament that neither derives great pleasure from being with the crowd nor against it
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kulman
Senior Member
Joined: 02/Sep/2006
Location: India
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Posts: 9319
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Posted: 14/Dec/2007 at 7:15pm |
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5 GOLDEN RULES---Ramdeo Agarwal
The first rule to investing is ‘Don’t lose money’. The second rule to investing is ‘Don’t forget rule no. 1’! They are:
1. Assess the entry barriers created by a company
Entry barrier should be preferably intellectual in character. Remember, a stock is nothing but a stake in the company’s business. Entry barrier should be long-lasting. Buy into such companies at the earliest. “Though difficult to practice, think ahead of the crowd”
2. Management should be competent and passionate
Competence or passion alone will not work. An individual with a local degree combined with passion would have greater growth prospects than one who has a Harvard degree but no passion. A company like Pantaloon Retail is a shining example of how passion can create wealth. “The definition of a great company is one that will remain great for many years”
3. Management should have integrity
If honesty is part of a company’s DNA, it will be fair to its smallest stakeholders – the minority retail shareholders. “Without management integrity, no margin of safety can be high enough”
4. Buy low
The price that you pay for a stock determines your rate of return.
The quote - “In the bible it is said that love takes care of a lot of sins. In investments, purchase price takes care of a lot of mistakes” – is very apt. You can make mistakes on assessing the first three parameters, since they are subjective in nature, but getting the right purchase price covers up for all your mistakes. Hence, estimate the expected value / intrinsic value of the company and keep an adequate margin of safety in the purchase price. “It is much more important to buy cheap than to sell dear”
5. Have patience
After having bought a company that conforms to all the above four criteria, you need to have patience. Investing in equities is often driven by two emotions – greed and fear. And patience is the mantra that helps overcome these emotions. Patience makes the difference between investing and speculation. It’s like a fertiliser to the investment process. “In reality, patience is crucial, but it is a rare commodity”
End note
Investing is laying out today’s money for more in the future. Its about performance of the underlying assets. Success in investing is the outcome of a disciplined approach.
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 wah wah
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Life can only be understood backwards—but it must be lived forwards
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basant
Admin Group
Joined: 01/Jan/2006
Location: India
Online Status: Offline
Posts: 18403
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Posted: 14/Dec/2007 at 8:08pm |
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Hey, did i read Pantaoon Retail? Now that is news when did he become interested in pantaloon or is this just an example?
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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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kulman
Senior Member
Joined: 02/Sep/2006
Location: India
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Posts: 9319
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Posted: 14/Dec/2007 at 8:22pm |
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Mental makeup to be a successful investor--Ramdeo Agarwal.
1. Informational Framework
Information is power. Reading is essential to develop a trained and prepared mind. To get a global understanding, recommended readings are FT, Business Week, Fortune, Forbes and The Economist.
2. Analytical Framework
Next is the analytical framework i.e. how to think about competition, complexity, etc. This can be gained by reading select books on investment. Every individual is blessed to be better than others within his own circle of competence. Identify your circle of competence and use the informational and analytical framework to see things that no one else can see.
3. Behavioural Framework
Behavioural framework is the mental discipline that one needs to apply to the process of investing. Controlling greed is very important. If you have missed an opportunity, let it be. Don’t chase stocks. Money is not to be made from just one single stock. If you find margin of safety in an obscure company, although the market may not think it’s an L&T or Reliance, it’s fine. What is important is to find truly deep margin of safety and go for such companies, rather than have your portfolio decorated with big names.
Fear arises from the unknown. .. It’s your knowledge of what you are buying or holding that will reduce risk and the consequent fear.
One has to capitalise on the underlying value and more importantly remain invested during bad times.
Everyday ‘Mr. Market’ will keep checking your conviction. Most importantly, you need to understand that what you own is not just a piece of paper whose price will hopefully go up but a piece of business which will grow in value over time.
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Life can only be understood backwards—but it must be lived forwards
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tigershark
Senior Member
Joined: 13/Oct/2006
Location: India
Online Status: Offline
Posts: 3542
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Posted: 14/Dec/2007 at 8:56pm |
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omaha ja ke baba bahoot sudhar gaya hai!
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understanding both the power of compound return and the difficulty getting it is the heart and soul of understanding a lot of things
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kulman
Senior Member
Joined: 02/Sep/2006
Location: India
Online Status: Offline
Posts: 9319
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Posted: 14/Dec/2007 at 9:05pm |
Originally posted by tigershark
omaha ja ke baba bahoot sudhar gaya hai! |
ha ha. Good one!
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Life can only be understood backwards—but it must be lived forwards
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