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.

Masterly Inactivity: The Case for Very Long Term Passive Investments

The term 'Masterly Inactivity' was coined by Charlotte Mason in her famous book Original Homeschooling, a masterpiece on child development, parenting and education. The idea is that, parents should develop a child by 'some letting alone and some wise openings'. It's a restatement of the age-old wisdom that one should not worry about the things they can't control. I believe the idea of 'masterly inactivity' applies to investing as well.

Creating Value in an Equity Investment: The Basics

In my PGDM, the Business Strategy paper described a framework called the 'Value-Cost Framework'. That is to say, a buyer creates value for himself by paying a price which is lesser than what he is willing to pay for a product or a service. Of course, this was taught in the context of Value Creation in Marketing. But it’s not so different in the context of Common Stocks.

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.