'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.

Indian Energy Exchange Valuation: Odds, Bets and Handicapping

Indian Energy Exchange (IEX) is the premier Energy trading platform of India. The government's goals, tuned towards better infrastructure and better industrial output, puts IEX in a sweet spot. But is the market paying up for the growth ahead or is it overpaying for opportunities that aren't even there?

Goodyear India Valuation - A 'Practical Thought' Model for Valuing Equities

In his book "Poor Charlie's Almanac", Berkshire Hathaway's Vice Chairman Mr. Charlie Munger talks about an informal speech he gave in 1996, titled "Practical Thought About Practical Thought?". He warns that not many people understood his talk and it was practically a communication failure. But at the crux of this speech lies hidden a valuation technique that acts a saving grace for those averse to intrinsic valuation methods such as the DCF or the DDM.

Masterclass: Warren Buffett's 6 Commandments for Stock Picking

We are in the midst of a Midcap and Smallcap carnage in Indian Equities. While the gamblers are losing their minds, the smart investors are readying their war chest for loading up on undervalued bets. At this juncture, I would like to turn back in history and look at how Mr. Warren Buffett goes about picking stocks.

Apple Juice Investing: Do You Know Your Cost of Capital?

The Discounting Rate or a 'Cost of Capital' is often a very important input in any kind of Valuation model, including Equity Valuation models. But do you know the Cost of your Capital?

Purchasing Common Stock: A 7 Step Code of Conduct

This is the 7-step code-of-conduct I follow whenever I attempt to purchase a Common Stock. The code is derived from the ideas of some of the investing greats, like Warren Buffet, Charlie Munger, Philip Fisher, Peter Lynch, Monish Pabrai and Prof. Aswath Damodaran.