Dear Investor, There are two strategies to play tennis. One strategy is that you play offensively and go for a winning shot often. The other strategy is to play defensively and only aim to return the ball while hoping that the other person will himself/herself hit the ball out. Now if you are an expert and have years of practice then the first strategy might work for you, but it always comes with the risk of hitting the ball out…
Dear Sir, One of the mental models we use for identifying potential investment opportunities is “Companies that have completed major Expansion”. The idea behind the above is that most of the time earnings get depressed during the Expansion period and the stocks become available at cheaper valuations. So, while the current earnings might be depressed, with the completion of the Expansion, the earnings 2-3 years down the line could improve substantially. Thus, giving an opportunity for earnings and valuations re-rating.…