No business is bad. It’s all about ethics and intensions. All businesses are difficult to run because we live in a capitalist society.
You know the level of difficulty only once you start a business.
Had an amazing Clubhouse session with Siddhartha Bhaiya @sidd1307 and the @AequitasL team.
Here’s a thread🧵on some interesting points made by him:
Read on👇
No business is bad. It’s all about ethics and intensions. All businesses are difficult to run because we live in a capitalist society.
You know the level of difficulty only once you start a business.
Focus on hard code numbers. Don’t focus on story and narratives. They will come later.
Once the story is all over twitter and media, it's probably the time to sell.
Always remember: The best publicity of a stock is the increase in its own stock price.
Focus more on the downside risk and less on the possible upside. This concept is counterintuitive to many.
Think of how I can reduce the probability of making a loss. If you protect the downside, upside will take care of itself.
The future is uncertain. Our ability to predict the future is extremely low. No one know about how Uber and Zomato would change our lives.
Very important to know what you know and what you don’t know.
The three most important risks are:
~ Valuation risk,
~ Balance Sheet risk, and
~ Liquidity risk of the company.
Beta and other textbook risk measures only make you look intelligent but they don’t actually make you money.
Valuations and Margin of safety are paramount. (Look at net cash, Debt/Equity, PE, Mkt cap/Sales, Long term Ebitda margins)
As a retail investor you don’t have to invest like any mutual fund. All you have to do is to buy 15 - 16 undervalued names.
At peak profitability margins – PE multiples will be at the peak.
At bottom profitability margins – PE multiples will be at the bottom.
Focus more on the industry leader. An industry leader always has it's basics in place.
There can always be exceptions but investing is a game of probabilities and you want to keep them in your favour.
Don’t focus on historical ROCE because it’s already factored in the price.
Instead focus on the future ROCE of the company and from where it will come from.
Equal weightage as we don’t know which ones will outperform. Focus is on selecting undervalued companies and putting close to 6% in each.
Never invests more than 6% in any company but we don’t sell our winners just to rebalance. We let our winners run.
Tries to be close to 100% invested.
99% of the people are not able to time their cash positions and you only realize it after 15 years of experience in the markets.
Favourite multiple: Market cap/Sales.
Favourite screen: When Market cap/sales < 1 and Margins have come down due to cyclicality. Focus on the long term EBITDA margins of the company.
Keep a track on Company announcements and commentary.
In the short run there will be volatility. In the long run markets will go up because of global money printing.
When asked about where we are in the bull run of 2002-2007: "We are in 2004." (With a disclaimer of I can be wrong)
Thanks for reading.
Kindly retweet the first tweet if you think others would benefit from this.
https://t.co/i38ExRkSI0
Join today's Clubhouse session to listen in to our Research and Investment process with @sidd1307 https://t.co/TCcJJWQJoc#aequitas #clubhouse #ValueInvesting #MultiBagger
— Aequitas Investment Consultancy Pvt Ltd (@AequitasL) September 18, 2021
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Recently, the @CNIL issued a decision regarding the GDPR compliance of an unknown French adtech company named "Vectaury". It may seem like small fry, but the decision has potential wide-ranging impacts for Google, the IAB framework, and today's adtech. It's thread time! 👇
It's all in French, but if you're up for it you can read:
• Their blog post (lacks the most interesting details): https://t.co/PHkDcOT1hy
• Their high-level legal decision: https://t.co/hwpiEvjodt
• The full notification: https://t.co/QQB7rfynha
I've read it so you needn't!
Vectaury was collecting geolocation data in order to create profiles (eg. people who often go to this or that type of shop) so as to power ad targeting. They operate through embedded SDKs and ad bidding, making them invisible to users.
The @CNIL notes that profiling based off of geolocation presents particular risks since it reveals people's movements and habits. As risky, the processing requires consent — this will be the heart of their assessment.
Interesting point: they justify the decision in part because of how many people COULD be targeted in this way (rather than how many have — though they note that too). Because it's on a phone, and many have phones, it is considered large-scale processing no matter what.
It's all in French, but if you're up for it you can read:
• Their blog post (lacks the most interesting details): https://t.co/PHkDcOT1hy
• Their high-level legal decision: https://t.co/hwpiEvjodt
• The full notification: https://t.co/QQB7rfynha
I've read it so you needn't!
Vectaury was collecting geolocation data in order to create profiles (eg. people who often go to this or that type of shop) so as to power ad targeting. They operate through embedded SDKs and ad bidding, making them invisible to users.
The @CNIL notes that profiling based off of geolocation presents particular risks since it reveals people's movements and habits. As risky, the processing requires consent — this will be the heart of their assessment.
Interesting point: they justify the decision in part because of how many people COULD be targeted in this way (rather than how many have — though they note that too). Because it's on a phone, and many have phones, it is considered large-scale processing no matter what.
