The Ten Baggers Of Dalal Street
August 19, 2014 Leave a comment
Even the subdued markets of the last five years have produced multibaggers.
The Superinvestors of Graham-and-Doddsville
August 19, 2014 Leave a comment
The Superinvestors of Graham-and-Doddsville is a seminal essay by Warren Buffett.
Buffett begins this essay by imagining a nationwide coin-flipping contest. Everyone in the US participates and calls the flip of a coin. Call correctly and move on to the next round, guess wrong and you’re out.After 20 days, about 215 lucky flippers will have correctly called 20 consecutive flips. They gloat about their success, yet the nature of coin-flipping tells us they’re just lucky. It’s a game of random chance.
But what if all 215 flippers lived in the same town? What if they all hailed from the same school? The same fraternity? Then we’d get excited. The laws of probability suggest 215 winners after 20 days. But those same laws tell us that if all 215 belonged to an associated group, that almost certainly wouldn’t be the product of random chance. These 215 flippers clearly would know something we don’t.
The real flippers in Buffett speech are nine “superinvestors” — himself included. All nine crushed the market averages over multiyear periods by between 8% and 22% per year.In a world with millions of investors, such returns can occur by sheer luck — just like the 215 coin-flippers appeared at first glance. But all nine superinvestors hailed from the investment school of Benjamin Graham and David Dodd — Columbia professors now known as the fathers of value investing. That meant something big. It meant that their success wasn’t the product of luck. It almost had to be attributable to the only common link they shared: the investing philosophy learned from Graham and Dodd. The “intellectual origin,” as Buffett put it. Read more of this post
Pankaj Parakh Tops Datta Phuge
August 18, 2014 Leave a comment
Remember Datta Phuge from last year? Link
Now here is a gentleman who has managed to top him:
Pankaj Parakh, a school dropout,made his fortune from his garment fabrication business ,is a corporator and no stranger to opulence. Whenever he ventures on to the streets in Yeola, 260 km from Mumbai, women stare at him and men glare at him as he is adorned with gold jewellery weighing at least two-three kg.
On his 45th birthday recently, Parakh wore his latest acquisition at a huge gathering including politicians and celebs.With the shirt and its seven gold buttons, Parakh hopes to enter the Guinness World Records and the Limca Book of Records.
“Gold has always fascinated me since I was five years old and studying in school. Over the years, I have become passionate about this royal metal. I have got this special shirt stitched to mark my 45th birthday.”
The shirt was designed by Bafna Jewellers of Nashik, 85 km away, and meticulously executed by Shanti Jewellers at Parel in Mumbai, where a team of around 20 select artisans spent 3,200 hours over the past two months to ‘stitch’ it.
Parakh, who took delivery in Mumbai, offered a sneak peek of his treasured shirt and even wore it for a darshan of the city’s famed Siddhivinayak Temple before posing for some pictures near the temple, while curious onlookers watched from a distance. Read more of this post
Paid Stock Advice
August 18, 2014 Leave a comment
Sometimes free stock advice is expensive. In the past, brokerage houses have come up with buy reports to help their larger clients offload a position and many brokerages release technical trading reports only to help generate brokerage income.
Equity investors who believe in buying stocks only after a thorough research and cannot access company managements on their own often seek independent research . Subscribing to fundamental reports makes economic sense if a family has a direct equities portfolio or is keen to build a portfolio of Rs 8-10 lakh at least. Equitymaster provides long-term stock recommendation services based on fundamental research. The service could cost anywhere between Rs2,000 and Rs30,000 annually. In their Hidden Treasure package, they recommend one small-cap multi-bagger every month. Also, they tell you when to book profit or exit the stock. Then there are individual-led firms like Kolkata-based Basant Maheshwari Financial Services, which gives stock ideas and access to archives of 8,000 questions across stocks which have been answered over the last decade. Read more of this post
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