For starters, we had our Value Investing Workshop in Chennai yesterday, and here are some moments from the same…
The next workshops are in Mumbai (19th Feb), Delhi (25th Feb), and Hyderabad (5th March). In case you wish to join any of these, please click here to register.
Anyways, let’s start with today’s post.
“It’s a funny thing about life; if you refuse to accept anything but the best, you very often get it.” ~ W. Somerset Maugham – English dramatist & novelist (1874-1965)
As I’ve seen in the past 14+ years of investing in the stock market, Maugham’s thought holds a great relevance when it comes to picking up businesses for investment.
Pick up a business with good economics and with good margin of safety, and the probability of making money in the long run is high. Pick up a business with poor economics with any margin of safety, and the probability of losing your shirt, and entire wardrobe, in the long run is very high.
Understanding a business also adds significantly to your margin of safety, which is a great tool to protect yourself against losing a lot of money.