Blog

Jubilant Industries – Offering decent Margin of Safety

Dear Readers, The central concern of all investors in their investment policy is to always ensure a “margin of safety”. The future is uncertain and no matter how good one is, the reality is that no investor, not even Buffett, can determine the exact intrinsic value of any business. Because the intrinsic value is derived from an investor’s assumptions, the value is merely an approximation. Yes, an investor as skilled as Buffett will probably have a better approximation of intrinsic…

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Your friend is making a mistake. Hope you are not in the same league

Dear Readers, Were you investing in stocks some 12 months back? Are you now considering stopping your investments for some time? I would like to apologise in case I am bugging you, however I am asking these questions because these days I come across many retail investors who seem to have the same view i.e., “The markets are looking in a bad shape now, so I am thinking of not investing now. I will restart later when the market looks…

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Beware of Brokerage houses and your relationship manage

Dear Readers, Well I personally don’t have any issues with Brokerage houses and relationship managers assigned by them. Nor do I believe that our relationship  manager wants us to lose money, however he’s stuck in such a bad job of generating brokerage for his firm and thereby additional commission and performance linked bonus for himself, that he cannot help but coerce you and convince you to trade and trade not just in cash but in F&O and now also in currency…

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Alpha/Alpha Plus recommendation for Nov’11

Dear Readers, We like companies which are: not over-leveraged, generate free cash flows, able to deploy capital at higher returns (in excess of 20%), regular dividend paying, command sizable market share and, most importantly are available at decent valuations. Moreover, if we find Promoters/Management themselves buying the shares of the company through open market purcahse, it further bolsters our confidence and comes across as an icing on cake. The good thing about such companies is their consistency and their ability…

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