8 Big Learning from the First Decade of Warren Buffett’s Investments

“What is the best available source to understand the concept of value investing in stock market?”

If you ask the above question to a room full of top value investors around the world, I believe almost all of them would say “Warren Buffett annual letters to his Limited Partners and Shareholders.” (1957-2018).

Like many stock market enthusiasts, I too read them all.

Made my notes on them.

And referred to them many times.

Over and over again.

One thing which struck me was the evolution of Warren Buffett as an investor in that long period spanning more than six decades.

We, at SSIAS, have taken up this project of dividing all the letters in to six parts representing six decades of Buffett’s investment journey. For our readers convenience, we’ve put together an illustrated version of Buffett’s letters (1957-1966). Please click here to download it.

In this post we aim to find the eight big learnings from the first decade –“Warren Buffett- The Benjamin Graham Investor”

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Image Credit: Markus Spiske on Unsplash

Stocks We’re Watching

This is the third post in our quarterly update series for Q4 FY19.

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 future. The purpose of this post is to bring clarity in 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.

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BKT – Widening Its Moat or Losing Its Strength?

Recently, I wrote a post where we got to know about a few patterns which help us identify emerging moats in the Indian stock market.

Now, we will review Balkrishna Industries and see if it fits into any of the patterns discussed in our previous post. Before proceeding ahead, let’s list down the four patterns to look for in an emerging moat to refresh our memory:

  1. Fixing Past Misallocation mistakes.
  2. Intelligent initiatives artificially suppressing the earnings.
  3. Geographical expansion pulling down the near term earnings.
  4. Inorganic growth by buying businesses at bargain value and then turning them around.

I am not going to deep-dive into Balkrishna Industries (BKT) here. I wrote a report on BKT in 2014 for Safalniveshak. You may find it here. Recently, the Finception team wrote an awesome post on BKT which I would highly recommend.

Purpose of this post is only limited to finding out whether BKT is following any of the above mentioned patterns or not.

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Image Credit: Markus Spiske on Unsplash

Stocks We’re Watching

This is the second post in our quarterly update series for Q4 FY19.

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 future. The purpose of this post is to bring clarity in 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.

Read More

Image Credit: Markus Spiske on Unsplash

Stocks We’re Watching

This is the first post in our quarterly update series for Q4 FY19.

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 future. The purpose of this post is to bring clarity in 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.

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How to Find Emerging Moats — From the Lens of an Investing Legend

Prof Sanjay Bakshi needs no introduction to the value investment community of India. He has a big fan following across the globe.  Prof. Bakshi teaches a very popular course titled Behavioral Finance and Business Valuation to MBA students at Management Development Institute in Delhi, India. He has shared invaluable content on investing in stock market on his blog and youtube channel which can be a guide to anyone who is just starting up his investment career.  Recently, I came across a podcast of Prof. Bakshi, which gives away pearls of wisdom, especially for equity investors.

The podcast touches on the following:

  • How to factor disruption technologies into your investment thesis
  • How to locate an emerging moat for a business
  • Why we should evaluate our stock performance using stress adjusted returns
  • How to read Warren Buffett’s letters to shareholders
  • Ask The Investors: How do I choose the best stock broker?

I would highly recommend you to listen to this episode of The Investor Podcast by Preston Pysh and Stig Brodersen.

This post, however, focuses only on the point of locating an emerging moat for a business. In the subsequent posts in this series, we’ll look at examples of Indian listed companies from this emerging moat lens.

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An Introduction to Banking Industry for New Investors

Banks remain an enigma for new and inexperienced investors who are often clueless as to how to go about assessing them for a potential investment in the stock market.

It’s fair to say that banking is one of the toughest industries to understand for new investors.

So we’ve created this report to simplify how banks work. This will definitely help the new investors wrap their head around banking industry. We also cover the history of banking in India and how the landscape has evolved over the years.

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Meeting with the Founders of Finception

Finception, with its original and refreshing style of writing on Indian stock market, has caught an attention of many in a short span of less than a year.  We at SSIAS, just could not wait to meet them and know their story. When we contacted one of the founders, Shrehith, he was kind enough to immediately give us an appointment for the same day.

We walked into the CIIE building of IIM Ahmedabad, trying to locate the office of Finception. We entered a room and found that a few college students were working on some projects. I asked one of them:

“Can you please let me know where the office of Finception is?”

He replied, “Hi, I am Shrehith. You chatted with me. This is Finception’s office. Welcome.”

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What We’re Reading

There is one activity that an investor can never over do — reading.

But it’s important that you read things that build your knowledge and help you make better investing decisions. Avoiding the noise is as crucial as reading the timeless stuff.

In this post, we’re sharing few good pieces that we came across this week …

Successful Investing Requires Both Humility And Arrogance

I would argue that an investor should have roughly equal doses of arrogance and humility to be able to perform well. The arrogance would allow him to stay apart from the crowd and believe in his own logic and objective reasoning, while humility would keep him grounded and not be seduced by hubris which would lower the quality of his investment decisions.

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What We’re Reading

There is one activity that an investor can never over do — reading.

But it’s important that you read things that build your knowledge and help you make better investing decisions. Avoiding the noise is as crucial as reading the timeless stuff.

In this post, we’re sharing few good pieces that we came across this week …

You have to live it to believe it

In theory people should make investment decisions based on their goals and the characteristics of the investment options available to them at the time (things like valuation and expected return). But that’s not what people do. The research showed that people’s lifetime investment decisions are heavily anchored to the experiences those investors had with different investments in their own generation – especially experiences early in their adult life.

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