Annual Report Review: Bajaj Auto

Here is my review of the FY16 annual report of India’s leading two-wheeler company, Bajaj Auto.

Click here to download the PDF review (4 MB file), or read it in the panel below.


Let me know your thoughts and questions on this review in the Comments section of this post, plus any additional thoughts from your own review of Bajaj Auto’s FY16 annual report. Also share any suggestion(s) you may have to make future reviews better and easier for your understanding.

Statutory Warning: This is NOT an investment advice to buy or sell shares. Please make your own decision, as blindly acting on anyone else’s research and opinions can be injurious to your wealth. I own the stock, and thus my analysis is biased, and may be wrong. I have been wrong many times in the past. I am a registered Research Analyst as per SEBI (Research Analyst) Regulations, 2014 (Registration No. INH000000578).

Latticework of Mental Models: The Zero Price Effect

Would you buy something if it were discounted from Rs. 500 to Rs. 200? May be.

What if it was discounted from Rs. 500 to Rs. 10? Possibly.

How about if it were discounted to zero? Absolutely!

Getting something for free feels good. Isn’t it?

But don’t get too excited. Although the ‘cost of free’ is zero, it’s also a source of irrational behaviour. Remember those pile of free key chains, free pencils and notepads lying at some corner of your house? Well that pile may be harmless but there are other situations where this irrational affinity for FREE stuff can cause us to make bad decisions. The Zero Price Effect says that we often pay too much when we pay nothing.

I regularly give in to this zero price effect in my day to day decisions. Amazon offers zero shipping charges if I make a minimum purchase of Rs. 499. Every time I order a book which costs less than 499, I end up buying another book (which I don’t plan to read) just to avail the free shipping offer. I just can’t let go off the free offer.

So what explains our unusual love for FREE! stuff?

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Latticework of Mental Models: Deliberate Practice

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There are moments in life when you are in awe of someone so much that you wish to be in that person’s shoes, doing what he or she is doing. For that matter, everybody aspires to be really good at something. It could be a sport, an art, playing a musical instrument or any other […]

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Latticework of Mental Models: Antifragility

Hydra

As a kid, one of the most fascinating thing I ever witnessed while conducting my own zoology experiments, was to watch a lizard leave it’s tail behind. I am sure many of you must have found it intriguing that a lizard, if threatened, can voluntarily let go of its tail. It’s common in many lizard […]

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True Wealth Workshop 2016: Want to Meet Us In Your City?

After covering nine tier-2 Indian cities in 2014, we plan to conduct the second round of Safal Niveshak’s True Wealth Workshop starting this September. This is going to be a three-hour Workshop in a non-metro city, through which we plan to help people learn the most important rules of value investing, personal finance, and long-term […]

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Latticework of Mental Models: Straw Man Fallacy

StrawMan-MM-FI

A policeman, while on his usual late night patrol, finds a well dressed gentleman squatting under a streetlight. “Is there a problem sir? Are you looking for something?” Policeman asked the man. “I lost my car keys officer.” Replied the gentleman. “Do you need some help?” “Thanks. I sure could use some help. It’s been an […]

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Value Investor Interview: Rajeev Thakkar – Part 2

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Note: This interview was published in the January 2016 issue of our premium newsletter, Value Investing Almanack. To gain instant access to more such interviews and other interesting stuff on value investing and business analysis, click here to subscribe now. Read Part 1 SN: Is there a mechanism in Mutual Funds where you repay cash […]

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Value Investor Interview: Rajeev Thakkar – Part 1

rajeev_thakkar_safal_niveshak

Note: This interview was published in the January 2016 issue of our premium newsletter, Value Investing Almanack. To gain instant access to more such interviews and other interesting stuff on value investing and business analysis, click here to subscribe now. Rajeev Thakkar possesses over 15 years of experience in various segments of the Capital Markets […]

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