Monkeys, Reading & Investing
Most enduring investment successes are about the victory of returns (good) over risk (evil).
Survive To Thrive Part 4: The Drown-proofing Test
Most enduring investment successes are about the victory of returns (good) over risk (evil).
Which Investing Demon are you killing this Dussehra?
Most enduring investment successes are about the victory of returns (good) over risk (evil).
Survive to Thrive Part 3: Follow Just 3 Steps And You May Not Need Professional Investment Advice
I think this “work till 40, save aggressively and retire early” is a flawed proposition. Why do you think the billionaires like Warren Buffett and Charlie Munger haven’t retired? Are they still working for money? I don’t think so.
SSS wishes you a Happy Diwali- A Surprise Gift Waiting Inside!
“Simplicity is the ultimate sophistication.” — Leonardo da Vinci
Like many things in life, ‘Investing’ works best when it is kept ‘simple’.
You don’t need a jazzy dashboard or a complex excel model to make wealth over the long run. The wealth generation process is simple and boring. And it is the same for everyone.
Stocks We’re Watching
This is the 1st post in our quarterly result update series for Q2FY21.
In this post, we’re sharing the latest updates of the stocks from our watchlist. Please don’t treat this as a buy recommendation. We find these businesses interesting and we may build position (or buy more of those that are already in our portfolio) in them in the future. The purpose of this post is to bring clarity to our understanding of the businesses we are tracking. We make our notes on the quarterly results and conference calls. Putting it up here makes it easier for us to refer them at a future date.
You can see the earlier updates here.
PE Ratio Demystified in 3 Steps
A slightly edited version of this post was originally published in Morningstar.
The price to earnings ratio, or P/E ratio, is probably the most commonly used valuation metric in the stock market. It is a mathematical expression calculated by dividing a company’s current market value by the net profits of the current year.
When VIP Industries Met Murphy’s Law
Murphy’s Law says “Anything that can go wrong will go wrong“.
Today, the management of VIP Industries would probably agree to it more than anyone.
We have extensively covered (here and here) the progress of VIP Industries over the last seven quarters.
Recently, COVID-19 has led to many ugly surprises for VIP that no one could have envisaged.
And that reminds me of this quote by Robert Rubin:
Condoms aren’t completely safe. My friend was wearing one and he got hit by a bus.
Risks often play out in the most unanticipated ways.
“Say: Do” Ratio- A Reliable Metric to Assess Management of Businesses
Management often does not walk the talk. In this post, we explain how “Say: Do” Ratio can be a reliable metric to assess the management of businesses.
EXCITING NEWS FOR FREE, IN EXCHANGE FOR YOUR ATTENTION
I was researching a company as a potential investment opportunity in the Indian stock market.
I started reading about the history of the company.
Clicked on a youtube link on its website.
It was a short five-minute video. Very useful.
Then something interesting happened.
On the right side of the youtube page, I was prompted for a video.
It was Yuval Noah Harari. A renowned historian and author.
And also one of my all-time favorites. I was hooked.
I specifically liked this part in the video:
I will address the fake news question, not because it is the easiest to solve, but also because it is the most relevant to what you are doing in Google. And I would say that the current incarnation of the fake news problem has a lot to do with the model of the news and information market. We have constructed a model which basically says, EXCITING NEWS FOR FREE, IN EXCHANGE FOR YOUR ATTENTION.
I was blown away by this last phrase.