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Safal Niveshak Value Investing Contest 2018

Here’s your chance to showcase your analysis skills to the Safal Niveshak tribe, and in the process win a prize if your entry gets chosen amongst the best.

Contest Rules

  1. Write a 3,000 word (max.) report on one listed Indian company of your choice.
  2. You may submit more than one report, but will be eligible for only one prize.
  3. Deadline for report submission is 25th March 2018
  4. Email your report in a Word file to vishal[at]safalniveshak[dot]com with the subject line as – “Value Investing Contest 2018 – Company Name – Your Name”
  5. The stock must have a market capitalization of more than Rs 500 crore
  6. The idea must be well researched (by you). Your analysis must cover these areas:
    • Company history and business
    • Moat analysis (if moat exists)
    • Competition
    • Financial strength (provide data/charts to support your analysis)
    • Management quality (have they been good or bad allocators of capital)
    • Risks (what can go wrong)
    • Valuation (no price targets required; challenge the market’s current valuation instead of calculating your own)
  7. The report would be exclusive to Safal Niveshak. But you can post an abstract at other places and link to the full report on Safal Niveshak.

What Not To Do

Avoid hard-selling the idea, especially if you already own the stock. 🙂

Also, in your report, please make a mention whether you own the stock or not.

Evaluation & Rewards

I will evaluate each submitted entry ONLY on the depth and simplicity of analysis, though good presentation and proper language is more than welcome (would save us editing time!)

There are three prizes to be won (delivery in India only) –

  • 1st Prize – Books of choice worth Rs 5,000/-
  • 2nd Prize – Books of choice worth Rs 3,000/-
  • 3rd Prize – Books of choice worth Rs 2,000/-

All submitted entries would be published on Safal Niveshak (the author can remain anonymous if he/she wants).

This contest is now open. Remember, the deadline for submission is 25th March 2018.

How Much is Enough, and A Few Other Questions

Note: I gave this talk to a group of friends working in Silicon Valley during my recent trip to the US. Surprisingly, they liked what I spoke and wanted me to share the transcript, which I am doing today in a deeper and more refined form.

Hi Friends,

Thanks for inviting me to speak to you today. I have nothing intelligent to say. You guys score much higher than me on the IQ charts. And it’ll be for the benefit of us all that I speak less and that you keep your expectations from me low. In fact, very low.

So, given that I have been given the freedom to talk whatever I want to today, I have smartly avoided intelligent stuff because I completely believe in what Mark Twain said and I quote, “It is better to keep your mouth shut and be thought a fool than to open your mouth and prove it.”

Instead of talking intelligent stuff around stock market, investing, human behaviour, etc., let me focus on a few important questions I have tried to seek answers to at various stages of my life, and that have helped me tremendously in choosing a path that, when I look back at, I am glad I chose.

[Read more…]

How to Get Rich

“What’s keeping you from being rich? In most cases, it’s simply a lack of belief. In order to become rich, you must believe you can do it, and you must take the actions necessary to achieve your goal.” – Suze Orman

Well, that was the theory of getting rich. Here are the pratical tips, the actions necessary to get rich –

How to Get Rich - Safal Niveshak

Also Read –
1. Getting Rich vs. Staying Rich
2. How to Get Rich, Stay Rich And Be Happy

My Notes on Warren Buffett’s 2017 Letter to Shareholders

Warren Buffett recently released his 2017 letter to shareholders of Berkshire Hathaway. As outlined on the first page of the letter, Berkshire’s share price has increased by, hold your breath, 2,404,748% over the last 53 years.

The big idea worth noting here is that the annualized return Berkshire’s stock has earned for its shareholders to achieve such magnificent result over 53 years is less than 21% – something people basking in the limelight of current bull run would discard as too less!

Anyways, I have prepared some notes on Buffett’s 2017 letter. Click on the image below or click here to download the document.

Notes on Warren Buffett's 2017 Letter to Shareholders -

I suggest you read the original letter in its entirety by downloading it from here.

Charlie Munger on Bitcoins, Banking, AI, and Life

I recently attended the annual shareholder meeting of Daily Journal Corp, a publishing company based in Los Angeles, US. I am not a shareholder in DJCO, but this was a chance to hear the 94-year old Charlie Munger, who is its chairman and director.

Mr. Munger answered questions from the audience for around two hours – on wide-ranging topics like bitcoins, banking, artificial intelligence, and life – including one from me (see below). Here are excerpts from the notes prepared by Adam Blum (see the link to entire notes at the bottom of the post).

On searching for ideas – The two rules of fishing are to fish where the fish are, and don’t forget the first rule. Investing is the same thing. In some places, no matter how good a fisherman you are, you won’t do well. Life is a long game. Take it as comes and do the best you can, and if you live to an old age, you will get your full share of opportunities, which will be two in total, maybe, but seize one of the two, and you will be alright.

On personal success – Approach life like [Thomas] Carlyle, and get up every day doing the best you can. Marry the right person. Everyone here who’s your age will do well. You’re not that mad at the world; instead you’re trying to cope with how to make it a little better. If you were here with placards shouting, you wouldn’t have bright future. Avoid extremely intense ideology, because it ruins your mind. The kids with the placards are pounding the idiocy in instead of shouting it out.

[Read more…]

Dealing with Stock Market’s Moments of Terror

I received this Whatsapp message from a friend recently, where he wanted my opinion on the post-Budget crash in Indian stocks and how to deal with the same…

My friend’s message reminded me of Howard Marks’ Feb. 2016 memo to clients, where he described the situation in the stock market then –

My buddy Sandy was an airline pilot. When asked to describe his job, he always answers, “hours of boredom punctuated by moments of terror.” The same can be true for investment managers, for whom the last few weeks have been an example of the latter. We’ve seen bad news and prices cascading downward. Investors who thought stocks were priced right 20% ago and oil $70 ago now wonder if they aren’t risky at their new reduced prices.

[Read more…]

Safal Niveshak’s Value Investing Workshop – International

Time flies. It’s already been over six years since I started Safal Niveshak in mid-2011. Even the journey of my Value Investing Workshops is about to complete six years. So far, I’ve completed 70+ workshops across 15+ cities in India, covering 3,000+ investors. And it’s been a wonderful experience.

Over these years, I have also received quite a few requests for conducting such workshops outside India, which I have avoided so far.

However, given the continued requests, I am making an attempt now to conduct these workshops internationally.

To start with, I plan to conduct two workshops in the United States in February 2018. Tentative dates are 10th February (Saturday) in San Francisco and 17th February (Saturday) in New York.

If you are in the US that time and wish to attend any of these sessions, please fill this short form to show your interest, which will help me finalize my plans.

Also fill the form if you live in some other country and want me to visit there to conduct such a session.

If you need any other details on these workshops, please email me at

Thank you! Look forward.

My Interview with Kenneth Jeffrey Marshall

Note: This interview with Kenneth Jeffrey Marshall was originally published in the November 2017 issue of our premium newsletter – Value Investing Almanack (VIA). To read more such interviews and other deep thoughts on value investing, business analysis and behavioral finance, click here to subscribe to VIA.

Kenneth Jeffrey Marshall - Value Investing Almanack - Safal NiveshakKenneth Jeffrey Marshall is an American value investor, teacher, and author. He teaches value investing in the masters in finance program at the Stockholm School of Economics in Sweden, and at Stanford University. He also teaches asset management in the MBA program at the Haas School of Business at the University of California, Berkeley. He is the author of the 2017 bestselling book Good Stocks Cheap: Value Investing with Confidence for a Lifetime of Stock Market Outperformance published by McGraw-Hill. He holds a BA in Economics, International Area Studies from the University of California, Los Angeles; and an MBA from Harvard University. He splits his time between California and Sweden.

Safal Niveshak (SN): Thanks for doing this interview, Kenneth! Please tell us a little about your background and journey, and how you got into value investing?

Kenneth Marshall (KM): Well, I was first shown value investing in the late 1980’s. But it wasn’t like some sudden enlightenment. It actually took me a decade to get it. I’d rather not think about the cost of that delay.

[Read more…]