Archives: 2006 March
Notes from Columbia Business School trip’s meeting with Warren buffett
March 29th, 2006, 3 Comments
I always make it a point to read the transcripts/ notes of these meetings. A lot of it is the same stuff, but I am always able to find a few gems of wisdom in buffett’s replies to the Q&A. Some of the interesting comments are below Link : http://investoblog.blogspot.com/Question 3: What do you read?Everything. [...]
Common errors in DCF models
March 28th, 2006, 6 Comments
Found this great article from Michael Mauboussin, Chief Investment Strategist of Legg Mason Capital Management (LMCM). It is a 12 page article on the common errors investors commit in using the DCF (Discounted cash flow) model. Personally my approach to valuation (which is not original and mainly developed from reading) is to create a DCF [...]
The warren buffett of India
March 27th, 2006, 4 Comments
Chandrakant sampat is rightly called the warren buffett of india. See his profile hereI just read this interview with him where he has given his thoughts on the market. It’s a must read A few excerpts from the interview A few months back, I was looking at a table of 100 Indian companies ranked by [...]
portfolio construction – Size of a bet
March 26th, 2006, 5 Comments
My earlier tendency when adding a stock to my portfolio was to allocate an arbitrary amount of money to it. The actual bet or the size of the position was initially a fixed amount of money and later it became a fixed percentage of the portfolio (around 5 % usually).However later I read several articles [...]
An investment idea (In process)
March 23rd, 2006, 6 Comments
I generally run a simple screen in icici direct to list all the companies selling below a PE of 12. Why a below 12? Well, there is a certain logic behind it and I will expand on it in another post. So with the market at 10,000+ levels, the list has become fairly short with [...]
To invest or not to invest ?
March 20th, 2006, 2 Comments
I was looking at one of my first few posts Market now offering 10:1 oddsAnd Investing based on odds …Does it work ?And saw that back in 2004, the market odds were 10:1 So what are current odds? With a PE ratio of around 19, the current odds are around 1.4:1 . These odds are [...]
