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Happy Diwali…and My Wish for You

I was recently reading a story on the classical Greek philosopher, Socrates, who was tried and executed in 399 BC. He was tried on two charges – corrupting the youth, and impiety (perceived lack of proper respect for something considered sacred).

Socrates had done no such thing. What he had done was educate the youth, teaching them to challenge arguments from authority and question what they believed to be true.

In the process, he frustrated and embarrassed many powerful people with his constant line of questioning, known today as the Socratic method.

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The Most Important Thing That Counts in Investing is Character

The Diary of a Young Girl - Anne FrankOne story from World War II that I found as tragic as it was magnificent was that of Anne Frank.

Frank was born in Frankfurt, Germany but moved to the Netherlands for safety in 1934, five years after she was born. The Frank family hid in their basement with four other Jews when Germany took control of the Netherlands.

Anne then began to write, at age thirteen, in a diary of her life, feelings and the outside world. She wrote in the diary every day for two years until their hiding place was found and she was forced into a concentration camp where she died with her sister due to a sickness. She was just fifteen when she died.

Although Anne wasn’t only a tragic girl in this war, her diary that is available to read as The Diary of a Young Girl displays the strength of her character. The diary portrays her as a brave and hopeful girl, character traits that are hard to manage in the kind of hardship that she was a part of.

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How to Teach Kids the Value of Money

Warren Buffett is undoubtedly a famous man. And he is not just famous for his riches, but also for his rejection of the trappings of wealth. As we all know, he lives in the same house he had bought in 1958 for US$ 31,500, and his annual salary of US$ 100,000 is far less than what most CEOs (including many in India) earn.

But there’s one aspect of Buffett that many people don’t know much about. And that is about how he has brought up his kids when it comes to the subject of money.

Over the years, several interviews with his kids have revealed how Buffett’s message to them on money was loud and clear as they were growing up. And it was that money wasn’t what mattered in life. Instead, it was finding something you loved to do and then doing it.

In his book, “Life Is What You Make Of It,” Peter Buffett, a musician and the youngest son of senior Buffett writes about the values he absorbed growing up as the son of Warren Buffett and his late mother, Susan Buffett, and the path he has pursued to identify and pursue his passions in life.

He also writes about things like requiring children to do chores and letting them solve problems on their own instead of bailing them out. But he warns that children will pick up on their parents’ true beliefs about money – no matter what a parent says about money.

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Safal Niveshak Stock Analysis Excel Version 3.0

A few readers have accused me in the past of being a sadist who wants them to do the dirty work of analyzing companies on their own, instead of simply recommending stocks like so many other blogs do.

But I’d rather give you a compass instead of a map, for you can confuse the map with the territory and lose your life’s savings walking that path.

In this pursuit of handing you another compass, here is Version 3.0 of my Stock Analysis Excel Sheet that you can download on your computer, read through the instructions to follow a few simple steps, and then analyze not just the past performance of a company but also arrive at its approximate intrinsic value range.

And unlike the previous versions where you were required to enter most data manually, this latest version feeds in data automatically from website, which subsequently feeds into my sheets on financial analyses and intrinsic value calculations. So you must thank Screener’s creators and my friends Ayush and Pratyush before thanking me. 🙂

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StockScan: Accelya Kale Solutions Ltd.

Here’s my StockScan report on Accelya Kale Solutions Ltd., leading software solutions provider to the airline and travel industry.

Please note that this is NOT an investment advice to buy or sell shares. This is just my analysis of the company’s business and not a stock advice. It’s important that you make your own decision.

StockScan is just my effort to compress my thoughts on a business in a single page, that forces me to focus on the most important things, and exclude the noise that too much information and analysis may bring.

Click here, if you cannot read or download the report above.

Statutory Warning: This is NOT an investment advice to buy or sell shares. Make your own decision. I do not own the stock, but my analysis may be biased, and wrong. I, Vishal Khandelwal, am a registered Research Analyst as per SEBI (Research Analyst) Regulations, 2014 (Registration No. INH000000578).

The Art of Reading Balance Sheet (Video)

For all my warnings against watching business TV over the years (I don’t want to get started on the reasons again), I was on at ET Now yesterday to speak about long-term investing (yes, long-term investing…on business TV!). I also talked about one of my favourite subjects i.e., reading annual reports and specifically the Balance Sheet.

Here is the video of the chat (click here if you are not able to watch the video below) –

Combine this with my earlier posts on how to master analyzing the Balance Sheet – Part 1 and Part 2.

In the above chat, I talked about the annual reports of Avenue Supermarts, Symphony, and Info Edge – all of which I have analyzed and written about recently (Disclosure – I don’t own any of these stocks).

On being asked in the interview about my all-time favourite ‘annual reports,’ I mentioned Asian Paints and Titan (Disclosure – I own both these stocks, so big bias here).

Hope you find value in what I spoke, but also understand that my views were always on the annual reports and underlying businesses and never on the respective stocks.

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. My analysis may be biased, and 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).

Imagine It’s September 2007

Imagine it’s September 2007. The world seems safer, for we have not seen much of Donald Trump or Kim Jong Un. We have an opportunity to trademark brands like Uber, WhatsApp, Quora and Instagram as they do not even exist. Twitter and iPhone are less than a year old. Steve Jobs, Robin Williams, and Michael Jackson still walk the planet.

Imagine it’s September 2007. Bear Stearns and Lehman Brothers are still in business. Ramalinga Raju, along with his accountants, is still creating fictitious cash at Satyam. The market caps of Eicher Motors and Page Industries are less than 2% of what they would be ten years later. And those of DLF and Suzlon are 6x and 24x respectively of what they will be when you are ten years older. The BSE-Sensex is just four months away from peaking before crashing by 50%, though it is still 50% of what it will be after ten years.

When I imagine it’s September 2007, I am ten years younger, and stupider. I am busy writing stock recommendation reports for my employer, whom I am going to leave in another three years. The idea of Safal Niveshak does not exist in my, or anyone else’s, mind. Nobody knows me or trolls me (wow!).

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The J-Curve Model of Thinking, Living, and Investing

My friend Ravi came home for lunch last weekend. He looked dejected.

“It’s a bull market, Ravi!” I said trying to cheer him up, but he was in no mood to give away his dejection.

“I’m nearing forty, Vishal, and that makes me depressed.”

“Why Ravi? You should be happy that you’ve already left your dumb forty years behind!” I said jokingly.

“Be serious, Vishal! I mean, forty years have passed and it seems I have not achieved much in life. My salary is good but not great, I am travelling long hours every day for my job, my investment portfolio size is still a far cry from what I want to retire with, my stocks are doing well but not as well like what my other friends’ stocks are doing, and my dream of writing a bestseller novel is still a dream.”

“Wow! And you are nearing forty!” I said with a smile.

“You don’t have to remind me that!” Ravi replied with a smirk.

“Ravi, how much would you rate your life so far on a scale of one to ten?”

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