Wednesday, 23 November 2011

Value Investing: Maximizing Investment Returns through Risk Aversion

I am really excited to enter into hitherto uncharted territory for me: blogging. Idea of creating my blog on value investing dawned upon me while reading some very interesting blogs on value investing and the interactive nature of this framework. It is like creating "virtual brainstorming" sessions from some highly talented and like minded people. What an Idea sirji!!!

Since this is my first post, I would like to introduce my self and give little bit of back ground on myself. I have done my chemical engineering from Nirma Institute of Technology, Ahmedabad and completed my MBA from University of Akron, Ohio. I am currently involved in providing consulting services to the energy sector.

I heard about Value Investing some 3 years ago, and it caught my attention instantly! This was because, here was a framework, which claimed to have succeeded in "beating the market" handsomely and consistently for years while I was given to believe umpteen number of times, during my finance courses in MBA that there exists an "efficient market" and it is impossible to beat the market. This led me to researching further on this framework by reading more about some of the greatest investors of all time such as Benjamin Graham, Warren Buffet, Philip Fischer and their investment philosophy. The common underlying principle for them was "buying good business cheap" when market creates an opportunity where inherent value of business is far more than the price determined in the market. This framework revolves around Margin of Safety thus restricting downside even in worst case scenario. Even though such opportunities are not plentiful, they do exist. 


Since then, I have been trying to apply these value investing principles to my investment decision and I am happy to say that results from last 2 years are heartening! However I thought that it would be a good idea to post my views/thought process/investment ideas here and receive feed back from people who have similar interest as myself. 

I would also like to emphasise here that I am fairly new to blogging and hence all the suggestions for improving it are always welcome.

7 comments:

  1. Good subject and quite useful.Wishing success and waiting to hear more:!!
    shaishav

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  2. Great going... and very good thought to create a platform to share your views... Wish you all the very best.

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  3. Thanks all for your words of encouragement.

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  4. Keep going Dhwanil, I myself being a value investor, I would be reading your blog without fail.

    I wish you nothing, but the best :).

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  5. Hi Dhwanil ,

    Great to see value investor like you write your thought process. I am too Chemical Engineer & recently come to wonderful concept of value investing .
    I without fail read your blog & its long journey to understand & practise value investing with senior like you .
    I wish you best to explore more value in value investing .

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  6. Thanks for your compliments and appreciation.

    Best Regards
    Dhwanil Desai

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