Hi, I am Dhwanil Desai and currently working as a consultant in energy sector. I have been fascinated by simple yet highly effective philosophy of value investing. I have developed a deep interest in the subject and have tried to inculcate as much knowledge as possible by reading some of the great thinkers on the subject like Benjamin Graham, Warren Buffet, Charlie Munger, Philip Fisher, Seth Klaraman and Peter Lynch. I came across value investing 3 years ago and have been trying to manage my own portfolio using this philosophy since last 2 years.
I have realized along the way to my understanding that psychology of investor and behavioral finance are as important (or rather more important!) as analytical skills or high intelligence. If one wants to practice this philosophy successfully, emotional discipline, patience and strong conviction are prerequisites.
This blog is my attempt to share my ideas on this subject and more importantly create a forum to discuss and debate these ideas with like minded fellow investors.
My personal belief is that value investing is the most conservative and predictable method to create wealth over a period of time. Some day, I would like to take this up as my profession...though I don't know how far that day is!
This is regarding your analysis on J.B.Chemicals stock at this link : http://valueinvestinginpractice.blogspot.in/2011/11/jb-chemicals-classical-ben-greham-style.html
ReplyDeleteYou said that JB's debt is 729 crores...just curious to know like how you came to this figure.
I follow www.money.rediff.com for stock market tracking....and in the balance sheet section of JB I can see it's borrowed loan amount as around 156 crores ( by March 31,2011).
Just wanted to know how calculation happens to arrive at Rs.729/ crores.
Hi, Anon,
ReplyDeletethere is some misunderstanding. I have written that NWC -debt is 729 crores i.e. net working capital minus debt is 729 crores. Essentially it means even after company repays its debt, it will still have new working capital of 729 crores (which is net current asset). I hope this clarifies your doubt.
Best Regards
Dhwanil Desai
hey.. came across ure page.. awesome that u are a student of value investing.. while trends come and go.. value investing stays entrenched in the minds of most investors as a viable method to make money in the long.. the long run however seems to vary .. now a day the long run seems to be shortened to upto 4 years at max.. i do investments for a living.. and its tough..the market is unpredictable..and stock analysts are a dime a dozen.. they also happen to have no idea on wht the market is doing... i mean they follow the ball... sensex goes up.. bull run prediction.. sensex goes down... awesome.. the world will collapse... somewhere in this mess are individuals.. like ureself.. and to some degree like myself are trying to pick up companies will long term comparative advantages (porter).. well managed companies with a long growth prospect in india... ure doing a good job highlighting some of these companies..:)
ReplyDeleteanyways.. i was just wondering whether it would be possible to ask you some stock suggestions... i would be awesome if i can get a second opinion on certain stocks...
Hi Yogesh,
DeleteInvesting is as much as hard work as tryst with destiny! so one has to be prepared to be on roller coaster ride. However at the same time as they say luck prefers to come to prepared mind and that is some thing one can do, do some homework and be prepared. I am not sure whether I am capable of suggesting stocks to you or not as it seems u r much better placed doing investing for living! Anyway the whole idea of creating this blog is to share my ideas so I like Amara Raja ( may be it has run up a bit, but on every decline i would buy), Atul Auto is another stock I like as it is growth at reasonable price. I think Kaveri seeds is worth watching and may be taking a initial position. Gujarat Reclaim and Rubber/ Indag rubber are there in my portfoli. Zensar technologies look interesting. I am also working on 2-3 other ideas but is still work in progress.
Best Regards
Dhwanil Desai
Have sent u one mail on your yahoo address..if u can reply please
ReplyDelete