Monday, 7 October 2019

The Impact of Tax Rate-cuts on Value: Game Theory and Dominant Strategies

Most people in India, especially her investors, have welcomed Indian Government's Corporate Tax Rate-cut with fanfare. While first level thoughts may deceive us into believing all that extra money directly adds to the value of all companies, a deeper level thought process provides a more accurate understanding.

Monday, 26 August 2019

Ashok Leyland Valuation: What the Truck

Ashok Leyland is one of the top firms in the Commercial Vehicle segment in India. Near-term deterrents like new axle norms, implementation of the BS-VI standards and a very likely hike in vehicle registration charges may very well play the spoilsport. But if history is any indication, regulations do not have long-lasting impact. If the company can indeed cross these barriers, what will it be worth today?

Sunday, 11 August 2019

The Importance of Margin of Safety in Life and Investing: Only the Paranoid Survive

If someone asked me, "What is one investing rule you would never break?", I would immediately say "Margin of Safety" without flinching. In fact, it has almost become an instinct for me to claim a Margin of Safety for every single one of my investment ideas. Why is being cautious so important in investing?

Monday, 29 July 2019

Petronet LNG Valuation: Schrödinger's Stock

Petronet LNG (PLNG) is the market leader in India's LNG re-gasification industry. With the Government of India explicitly pushing their alternative fuel agenda, PLNG could gain considerably in the future. But as with most companies, the promise of prosperity comes with its own set of risks.

Monday, 8 July 2019

'Doing Nothing' Investing: A Thought Experiment

If you have been reading my blog posts since a long, long time, you may appreciate the fact that 'Masterly Inactivity: A Case for Very Long Term Passive Investments' was one of my earliest posts here. Since it had more to do with dissecting why passive investments work, it really didn't do the title justice. So, let's get our thinking hats on and understand why patience or in a crude sense 'doing nothing', is a powerful virtue necessary for any investor.