Value Investor as a Portfolio Manager I’ll focus more about portfolio construction (so bear with some stock picking assumptions). Stock Analyst -Value Investing Let’s imagine you are good been value investor. While, picking stocks you are looking for opportunities where there is chaos (or in financial parlance volatility is high). Lets learn from an example: … Continue reading Value Investor as a Portfolio Manager
Tag: stocks
The Nuances of Valuation
Main inspiration from this write up came from a problem I was facing while valuing a financial company and prof Bakshi’s blog (https://fundooprofessor.com/2020/10/06/the-relevance-of-price-book/) . There are four basic Principles of any investment analysis: 1) Business Quality (Competitive Advantage, No Excessive tail risk)- This shows persistence and slightly less volatility in our future predictions vs completely … Continue reading The Nuances of Valuation
Why 15 year returns, even rolling returns are naive sometimes- What’s missing in Data
Few days back someone showed me a chart where he claimed that India almost outperforms China, claiming still does not know why are some investors so gungo about investing in China compared to India. I was smelling naive empiricism (using raw data not focusing on the generating process (distributions) to prove your points . I … Continue reading Why 15 year returns, even rolling returns are naive sometimes- What’s missing in Data
Exit Strategy 