He invested in businesses like Asian Paints

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canada goose jacket canada goose outlet reviews outlet A: You analyse stocks when you are trading and you analyse businesses when you want to invest and you want to invest in them for long term. So the ticker only tells you canada goose outlet store uk what price it is but what value it is is only after you understand what the business does, who runs it, what is the strategy, what it can be 5 10 years out. For that, all the analysis has to fall in place. canada goose jacket canada goose outlet store quebec outlet

canada goose outlet online Q: Buffet put canada goose outlet uk fake it well, he said price is what you pay but value is what you get. Let us move ahead and say, you canada goose factory outlet have studied businesses, you studied the paint industry, you studied the footwear industry, many industries, are canada goose parka uk there any characteristics that you find that winning businesses have in common? canada goose outlet online

canada goose outlet canada goose outlet 2015 jackets A: I think from canada goose uk an India standpoint today, a framework which has worked well for us is something I call Consolidation Wave. So these are industries which are canada goose outlet michigan large in size and you would find few organised players but a lot of unorganised players. Almost 60 70 80 percent of lot of industries is dominated by unorganised players who get away without paying taxes and organised counterparts do not have a level playing field. So you canada goose outlet paypal look back and look at companies like Asian Paints, Relaxo Footwears, Page Industries, these companies have expanded and grown their topline at 20 30 percent, some even 40 percent like Page canada goose outlet online store review Industries for a fairly long period of time. The industry has grown at 10 12 percent. The underlying principle, which was shaping up, was they were winning market share from their weaker counterparts. canada goose outlet canada goose jacket outlet toronto jackets

canada goose outlet black friday Q: One of the techniques that you use to figure out, which companies to invest is called Scuttlebutt, what is Scuttlebutt and how exactly do you do it? canada goose outlet black friday

goose outlet canada A: Scuttlebutt is getting information from the ground before they are reflected in numbers. Once it is in the numbers, it is for everybody to see. We don have any advantage. But canada goose outlet ottawa if you are connected to the ground, if you are connected to what is happening to businesses, I think we have some edge. All this we write, there could be sampling error, first conclusion bias but in our canada goose vest outlet experience the benefits of far outweighed those small misses here and there. goose outlet canada

canada goose outlet sale Q: Another way is called Kicking the Tyres, give me the example of how you use Scuttlebutt in one of your picks? canada goose outlet sale

official canada goose outlet A: Relaxo Footwear back in 2012 if you had looked at profit and loss (P it was pretty average P in terms of margins but the company was doing a lot on the ground through advertisements endorsing the best of Bollywood, hiring Accenture as consultant, canada goose outlet uk sale increasing distribution. official canada goose outlet

canada goose outlet uk Q: Katrina Kaif is brand ambassador. canada goose outlet uk

canada goose outlet parka A: Yes, Katrina canada goose outlet ontario Kaif, Salman Khan, Akshay Kumar so they were trying to do a lot of unconventional things, which didn happen in footwear earlier and the P was being we were suffering in the near term for the longevity of the business. So if you were basing https://www.canadagooseonlineshop.co.uk decisions on P we might not like that business. canada goose outlet parka

canada goose outlet shop Q: Don’t invest in the stock, invest in the business. That played out well. canada goose outlet shop

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Q: The layman looks at the market, he often looks at tips, inside information, wanting to make a quick buck, fairly hazardous way to delve into the stock market, isn it?

canada goose outlet store canada goose outlet eu uk A: There are two ways to participate in markets. One trade, follow tips and get poor quickly or invest in great businesses and get rich slowly. That is the time tested way and we see a lot of millionaires and billionaires who have created a lot of wealth like that but not the former. canada goose outlet store uk

Q: That is a great point you make, you said you can get poor quickly or rich slowly, canada goose outlet vancouver the choice is yours.

canada goose factory outlet A: Absolutely and unfortunately we spend a lot of canada goose outlet canada time buying cell phones but not even few hours before buying a stock because there is a tip and this is the stock, which will make us rich, so we just invest Rs 5 lakhs in that stock and don even think. canada canada goose outlet las vegas goose factory outlet

canada goose outlet uk sale Q: That is something that is human nature, to believe in a tip or to believe in what some superior being tells you but spending lot of amount of time in searching a washing machine or a cell phone as you said. You read a book called ‚Retire Rich’, which changed your life? canada goose outlet uk sale

canada goose outlet reviews A: I canada goose outlet in toronto always had decent understanding of businesses because my dad worked at a manufacturing site. I had been to the factory since childhood and being a commerce student, I understood how businesses operate. But I did not have a very good perception about markets because my dad tried his hands trading and like most, lost money. When your dad tells you that market is not where an individual investor has an edge, it affects your mindset. That completely changed in my MBA. canada goose outlet reviews

canada goose outlet Q: Who changed that? canada goose outlet

canada goose outlet new york city A: S. G. Raja Sekharan. He was a visiting faculty and my mentor in MBA. He was a very senior canada goose outlet price IT professional, left his job when he became financially independent and started following his passion of teaching and stocks contributed to that, investing in great businesses contributed to that. He invested in businesses like Asian Paints, HDFC Bank, Pidilite, way early and held on to them and that made all the difference. canada goose outlet new york city

canada goose outlet nyc canada goose outlet usa Q: Buying not stocks but great canada goose outlet trillium parka black businesses and holding them, businesses mature over decade sometime. canada goose outlet nyc

canada goose outlet canada A: So that was the turning point and that was the first time I was looking at stock markets very differently. I was not looking at them as tickers but as businesses behind them and then he made me read Warren Buffet, Peter Lynch and Philip Fisher and that I believe was the turning point in my life. canada goose outlet canada

canada goose black friday sale Q: When you go to New York, they always say to you that you are taking a bite out of the big apple; you took a big gulp of a company called Tasty Bite. Tell me how your education, practical experience, philosophy came together in that stock pick? canada goose black friday sale

canada goose outlet store A: We came across this company because we were studying the packaged food and we understood that in India it is very difficult to do that. We are still too early for that kind of a product. canada goose outlet store

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canada goose outlet online uk A: Yes, so when we came across this company Tasty Bite eatables, the only differentiating point was that this was not selling to Indians. So it was making Indian food but exporting to US and not selling to NRIs but selling mostly to Americans, millionaires who canada goose outlet online uk wanted to try different cuisines canada goose outlet online uk canada goose outlet london uk.

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