Live tweeting highlights from our discussion with @SamitVartak moderated by @ishmohit1 and the DIA gang. @saket1974 @saketreddy @dadalife369 @cautkarshpandey @vishal_chandi

So let’s begin -

1. Before looking at the valuation of a business, look at the fundamentals first.

On cyclicals -

2. We look for profit power, the ability of the company to control price and gauge profit. This is why we don’t look at cyclicals.

3. With cyclicals, oftentimes the promoters themselves cannot predict pricing and profitability.
On building a portfolio -

1. Reducing the size of your portfolio too much can make it harder to find big winners, the ones that can give up to 40x in 10 years.

2. I look at 15-20 stocks as a balance between not spreading yourself too thin and not takeing too much risk.
On taking away market share -

1. Creating disruptions and innovating with new products allows you to take away market share. Example #APLApollo and the DFT technology.

2. Cash cows don’t deliver outsized returns for an investor. Aggression and innovation is needed.
On themes -

1. It is very difficult to pre-empt a theme before it happens and predict how it will play out. Instead of that, I look for data.

2. Deleveraging and capex is taking place. Companies have become lean in this period.
3. Targeting export growth to grow is something the government is recognising now. They are focusing on it through the PLI scheme.

4. Real estate is looking good right now. Salaries have grown meaningfully without prices going up.
5. Building materials is a way to play both capex and the real estate theme. Developers themselves are also looking interesting.

6. Balance sheets have strengthened across banks, corporates, government and even the consumer looks strong.
7. Don’t pre-empt, focus on what is going on right now.

8. Being too early is the same as being wrong.
On credit,

1. Corporate credit growth looks tough, given the healthy balance sheets. Generally, it has been a big driver of growth.

2. When it comes to unsecured lending, that may also take a hit, their lending may become risky because of the impact of the pandemic on people.
3. Overall, it looks tough for credit growth without the support of corporate and unsecured lending.
When to sell -

1. To take the right sell call is hard, the biggest mistakes come when we exit too late or too early. Selling too early could make you miss a multibagger, while selling late can also be very problematic.
2. When results of companies disappoint, dig deep into what is causing the underperformance. Try and ascertain if it is a short term issue or a structural change. If it is a structural change, you may want to get out immediately.
3. You can only know if it is a structural issue or short term issue if you spent some time understanding the business.

4. Talking to other market participants, suppliers and competitors also helps in understanding the situation.
Advice for budding investors -

1. The ability to understand businesses better is the most important thing to build if one wants to outperform the market long term.

2. The insight from the study of businesses compound long term.
3. Incremental return from just reading diminishes, you need to allocate time to thinking about what you read.

4. Time spent thinking about what you read should be at least double of what you spent reading.

5. Spend time gaming out different scenarios in your mind.

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Rig Ved 1.36.7

To do a Namaskaar or bow before someone means that you are humble or without pride and ego. This means that we politely bow before you since you are better than me. Pranipaat(प्राणीपात) also means the same that we respect you without any vanity.

1/9


Surrendering False pride is Namaskaar. Even in devotion or bhakti we say the same thing. We want to convey to Ishwar that we have nothing to offer but we leave all our pride and offer you ourselves without any pride in our body. You destroy all our evil karma.

2/9

We bow before you so that you assimilate us and make us that capable. Destruction of our evils and surrender is Namaskaar. Therefore we pray same thing before and after any big rituals.

3/9

तं घे॑मि॒त्था न॑म॒स्विन॒ उप॑ स्व॒राज॑मासते ।
होत्रा॑भिर॒ग्निं मनु॑षः॒ समिं॑धते तिति॒र्वांसो॒ अति॒ स्रिधः॑॥

Translation :

नमस्विनः - To bow.

स्वराजम् - Self illuminating.

तम् - His.

घ ईम् - Yours.

इत्था - This way.

उप - Upaasana.

आसते - To do.

स्त्रिधः - For enemies.

4/9

अति तितिर्वांसः - To defeat fast.

मनुषः - Yajman.

होत्राभिः - In seven numbers.

अग्निम् - Agnidev.

समिन्धते - Illuminated on all sides.

Explanation : Yajmans bow(do Namaskaar) before self illuminating Agnidev by making the offerings of Havi.

5/9
Margatha Natarajar murthi - Uthirakosamangai temple near Ramanathapuram,TN
#ArudraDarisanam
Unique Natarajar made of emerlad is abt 6 feet tall.
It is always covered with sandal paste.Only on Thriuvadhirai Star in month Margazhi-Nataraja can be worshipped without sandal paste.


After removing the sandal paste,day long rituals & various abhishekam will be
https://t.co/e1Ye8DrNWb day Maragatha Nataraja sannandhi will be closed after anointing the murthi with fresh sandal paste.Maragatha Natarajar is covered with sandal paste throughout the year


as Emerald has scientific property of its molecules getting disturbed when exposed to light/water/sound.This is an ancient Shiva temple considered to be 3000 years old -believed to be where Bhagwan Shiva gave Veda gyaana to Parvati Devi.This temple has some stunning sculptures.