At regular time intervals, I like to discuss selective questions from readers of this blog. Many times, I discuss randomly with no particular theme. It is usually based on either intriguing questions or inquisitive questions or just that I like the question. Now that markets have zoomed higher relative to last year, most of these questions have slowly drifted towards buying price. I give priority to respond to all questions that come from regular readers of my blog. I make sure I give them my best response. Others, I may or may not, depending upon if I have time to get to them or whether they are good questions.
Today, I am reproducing below three emails that follow the theme of “what is the buy price”. Continue reading rest of this article…
There are many different styles, approach, and methods of investing. Many individual investors focus on trading (swing, positional, momentum, speculation, technicals etc.), while many others focus of investing (value, growth, blend, etc), and still many others on special situations (opportunistic, arbitrages, etc). In addition, there are quite a few individual investors that attempt at combination of trading and investing. Similar to glass being half full or half empty, I believe every style has its own pros and cons’ depending upon in what context one is looking at it. Individuals have to figure out what works best for them.
Readers are already accustomed to my approach of dividend investing. I am a long term buy and hold investor and prefer to buy my positions at fair values (fair value calculation methodology). The reason I use fair value is because, I do have enough expertise to determine the tangible book value. While I still use book value based on Graham’s method, it is not the only one on which I base my decision.
Continue reading rest of this article…
Asian Paints is India’s largest and Asia’s third largest paint company. It is a vertically integrated paint company with in-house manufacturing facility. It’s product portfolio includes wall paints, metal paints, wood finishes, primers and others. The company’s market segments include decorative and industrial coating segment. The industrial coating segment consists of automotive coating, powder coating and protective coating. Besides Asian Paints, the group operates around the world through its subsidiaries Berger International, Apco Coatings, and SCIB Chemicals.
One notable aspect that I personally like about Asian Paints is that, it has been able to expand globally without taking on too much debt. It is able to support its expansion plan from its internal sources.
Trend Analysis
The whole reason for any business to exist is to generate sales revenue and make more profits. At a minimum, the parameters listed below should have continuously increasing trends. All the data below is based on last 8 years i.e. from 2000 to 2008. Continue reading rest of this article…
————————————————–
This is a guest post (unedited version) from Sherin Devassy, a personal finance and investment blogger at The Money Maniac. You may visit his blog for more information on value investing guidelines and personal finance guidance. Sherin is an investor for long term and has built a stock portfolio including most of the above mentioned stocks with a very long term focus. You can contact him at investinternals@gmail.com
————————————————–
Selection of a company to invest is not simple. But, in the same time, it is a simple task too. Commonsense plays major roles in selection by considering most important factors that any one can easily understand and adapt. By remembering legend investor Warren Buffett’s investment criteria’s, here I am listing 10 Indian companies that capable generate enormous wealth for long term investors.
Remember, companies mentioned in this article are not for short term investors. Most of them in this list have defensive character and suitable for investing to meet long term goals such as child higher education, marriage, buying a home etc. By remembering the classic rule, invest for long term, I assure any investments on this companies more than 15 to 20 years generate wealth like an ocean.
I have selected and listed these companies using some selection criteria’s. As the first, companies listed here have one or more product that is into the monopolistic position in Indian market and merely impossible to beat their position by others. Secondly, these companies have efficient management with innovative ideas and strong network across India. Finally, these companies have very few or no debt and registering year to year yearning growth.
1. Britannia Industries
Go to any shop, whether it is small or large mall, anywhere in India, whether it is a metropolitan city or remote village, you are able to find Britannia biscuits. Such strong brand along with extra ordinary sales network, bring this company as one of the gem in India. Continue reading rest of this article…
