What is it?

Investing discussions about the publicly traded good companies. Our goal is to learn together from each others experience, learnings, and skill-sets of analyzing good business. We seek long term approach and ultimate goal is to find 10 baggers. Discussion includes value investing frameworks, books, portfolio analysis, and any open idea about investing.

How we do it?

We discuss about proved investment frameworks followed or invented by successful intelligent value investors such as Benjamin Graham, Warren Buffett, Charlie Munger, Tom Gayner, Sir John Templeton, Joel Greenblatt, Mohnish Pabrai, Guy Spier, Matthew Mclennan, and more to name.

For example: food for brain

Tom Gayner 4 fundamental lenses:

1. Buy a business that’s profitable, earns good returns on capital and doesn’t use too much leverage (debt) to do it.

- Buying a good business with good returns on capital that doesn’t use too much leverage to do it. Well, the one thing that is consistent through all time is the notion of not using too much leverage, because if you have a business which has okay returns on capital, but uses leverage to magnify those and get better returns on equity, there’s nothing wrong with that, but that introduces a degree of fragility to the business that concerns Tom.
- Better to create a margin of safety, margin of error, whatever you want to call it so that if you’re wrong, you’re not going to lose money. And to be investing in a business that has a lot of leverage that introduces an area of fragility to things, it introduces the ability that you can have the cards pulled from your hand in the middle of playing your hand and wipe out kind of risk that would really diminish… wipe out your returns at any particular instance. stay away from it.
- Now, among the things that’s tempting in today’s world as we live in a period of ultra low interest rates, it’s rational and logical to get cheap debt financing when you’re looking at running a business. So we don’t want to express that as an absolute. It’s a relative term. The idea of using some leverage in today’s world, mean the government’s very much pushing you towards doing that and you probably should do some of it, but not too much of it and it’s a pretty grey line of an appropriate amount of leverages, but without tipping over into too much.

2. Business have to be run by people who have equal measures of talent and integrity.

3. Business to have reinvestment opportunities and the ability to grow or pretty good capital discipline, meaning the ability to do good acquisitions or pay dividends or do share repurchases.

4. Buy those business at relatively fair price

We choose a listed company with mutual understanding and go through 10k reports, financial statements, key ratios collaboratively.

Why is it impactful for me?

After attending this session, you should be able to understand basics of value investing. You will learn basics of mental and financial frameworks to analyze good business. You should be able to perform qualitative and quantitative analysis of any publicly listed company on any stock exchange around the globe.

Event Link:

We do streaming on Discord voice channel here: Discord voice channel: https://discord.gg/tSgB6Dh5BT

Sumit Dhama

SMC (Stock Market Chat) - The Intelligent Value Investors

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