There is clearly a wild rush towards equity, some are doing this out of FOMO (Fear Of Missing Out), whereas some are left with no other choice given relative unattractiveness of hitherto popular asset classes of Bank Deposits, Real Estate and Gold. The magnitude of this irrational exuberance can be gauged by reading chats in some whatsapp groups, comments on investing blogs or discussion forums like MMB (one such snapshot shared at the end of this short post).
Stalwart Advisors doesn’t have a sales team (& hence no sales target or incentive to mis-sell). Rather we have transparently put all the information on our website and let investors decide for themselves. If prospects contact us over email or telephone, we also ask lot of questions to gauge whether they are ready or not, and accordingly counsel them.
Yet, there
Why we bought Garware-Wall Ropes?
Posted by Stalwart Advisors | Business Models, Investing Framework, Scuttlebutt, Stocks | No Comments“Invest in businesses that buy commodities and sell brands” is a powerful idea for long-term investing propagated by Warren Buffet. This lends business the ability to pass on higher raw material cost without loosing unit volumes and retain some benefits in times of softer raw material prices. (a.k.a. pricing power)
As per Prof. Sanjay Bakshi, an attractive hunting ground for mis-priced companies is often where Mr. Market is valuing some businesses as commodity, perhaps because they belong to sectors which are labeled “commodity” for example textiles, whereas in reality some of these might have carved out a niche for themselves enjoying a strong pricing power (think Ambika Cotton)
In 2015 we got lucky when we spotted both these elements to be present in a business called ‘Garware-Wall Ropes’, a Pune based technical textile giant.
Is Real Estate Turning Around?
Posted by Stalwart Advisors | Food for thought, Indian Markets, Industries | One CommentIf past history was all that is needed to play the game of money, the richest people would be librarians. — Warren Buffet
What happens to a sector after a prolonged slowdown? – Mean Reversion?
What happens to a sector when Government channelizes its resources behind it? – Grows Fast?
What happens to a sector when there is a huge pent-up demand? – Tailwind?
And what happens when all three coincide?
Government seems to be seriously working towards achieving its stated goal of ‘Housing For All’ by 2022 which would require 20 mn new houses. Credit Linked Subsidy Scheme (CLSS) is a material development in that direction. Under this scheme, interest subsidy of 4 per cent on housing loans up to Rs 9 lakh for those who have
[Video] Individual Investor’s Real Edge – TIA 28th Jan 2017
Posted by Stalwart Advisors | Investing Framework, Investing wisdom, Investment Gurus, Investor Meetup | No CommentsPresentation made by Jatin Khemani, Founder & CEO, Stalwart Advisors at Bullet Proof Investing Seminar organised by Tamil Nadu Investors Association on 28th January 2017 at ITC Fortune, Chennai.
Notes on Presentation:
00:00 Introduction
00:38 Are large caps safe and easy to decipher?
07:35 How did Warren Buffet and other veterans start investing?
12:20 Why prefer smaller companies?
13:45 What goes into making of a 100-Bagger?
15:20 Case Study – Hero Honda – A 100-bagger for Ramdeo ji
16:25 Industries with High Potential
17:57 Case Study – Titan – A 100-bagger for Rakesh ji
19:58 Structural Theme: Unorganised to Organised
21:40 Sources of Information
23:00 How many companies in India do quarterly conference calls?
27:00 Scuttlebutt & Common
[Video] Surat Investors Meetup
Posted by Stalwart Advisors | Investing Framework, Investor Meetup | No CommentsTeam Stalwart travelled to Surat, Gujarat and organised a meet up on 26-27th November 2016 at Ginger Hotel, addressing 100+ investors in five different batches explaining some of the key frameworks, investment philosophy followed by us and addressing queries around investing.
If you are visiting our blog/website for the first time and/or contemplating signing up for our research, we strongly urge you to spend some time viewing following videos; this should help you understand our investment style and set the expectations right. To us it is paramount that every prospective investor who associates with us is able to understand and connect with our philosophy.
Part I – Key Frameworks
Notes to part I of the video which covers the following:
00:00 About Jatin Khemani, Founder & CEO
03:36 How he started & his journey so
SA’s Founder in ‘Wizards of Dalal Street’ with Mr. Ramesh Damani
Posted by Stalwart Advisors | Investing Framework | One CommentInterview Video: Jatin Khemani, Founder, Stalwart Advisors, in conversation with legendary investor Mr. Ramesh Damani in his show ‘Wizards of Dalal Street, A Fresh Breeze’ discussing:
His journey,
Why tips are hazardous to wealth,
Stalwart Advisors’ Investment Philosophy,
Why it matters to have high quality management team with skin-in-the-game,
How he found stocks like Tasty Bite Eatables and Relax Footwear,
Why understanding Operating Leverage is crucial for investors and
How it applies in case of businesses like Wonderla Holidays.
Why we bought Amrutanjan Healthcare and continue to like it!
Posted by Stalwart Advisors | Stocks | 4 Comments‘While, I was reading about this company I literally fell asleep’ said a smart analyst during one of our Chai pe Charcha meetings sometime in mid 2014. ‘You know.. it’s a 120-year old company and still does only about 140 Crores in sales, and by the way who really uses balm these days? I guess it’s a dying business’ he continued.
That’s what really got us interested to study it more as we had some idea already that it’s an owner-operated FMCG business with a net cash balance sheet, and zero institutional ownership- seemed like a classic Peter Lynch type boring story which nobody wants to even talk about. The only missing part was growth potential and over next few weeks that one question kept us busy.
Amrutanjan until 2012 was mainly
Indian Markets at Cross Roads
Posted by Stalwart Advisors | Food for thought, Indian Markets, Investing Framework | 2 CommentsDisclaimer: We are totally into bottom-up stock-picking and are amateurs when it comes to making sense out of Macros. This post is just a small attempt to share our thought process regarding current market environment and some interesting observations Imagine a conversation between two investors regarding a hot mid-cap which has recently done pretty well. The optimist might justify buying or holding on to it saying ‘Boss look at this new CEO who seems like an intelligent fanatic, has fire-in-the-belly to make it a global giant, look at his execution quality over last three years and the earnings potential of this business given humungous size of the market opportunity’ The cautious investor however would differ by pointing out to current valuations being close to life-time high and the potential
[Video] Talk delivered at FIL Alumni Meet, Pune – July 2016
Posted by Jatin Khemani | Business Models, Food for thought, Industries, Investing Framework, Stocks | 15 CommentsRecently I had the privilege of sharing my thoughts on investing with my fellow FIL Alumni at Flame University, Pune. The video, along with the presentation, is shared below. I talked about ‘India’s Consolidation Wave'; how the organized players stand a great chance to grow amidst an on-going shift in consumer preferences towards standardised and branded offerings.
Video_India’s Consolidation Wave
Notes on Video (Time 31:11)
00:00 Introduction
01:00 Drivers of Long-term Returns
03:00 Case Studies – Page Industries & Relaxo Footwear
04:30 Defining Unorganised Sector
05:50 Industry Research Filters Applied
06:40 List of Industries with high potential
24:45 Case Study – Decorative Paints (1980 – 2016)
26:48 GST: A big enabler
29:00 Value Migration Vs. Consolidation Wave
30:25 Summary
Presentation_India’s Consolidation Wave
For convenient reading switch to full screen mode
What makes Wonderla Holidays an amazing business?
Posted by Stalwart Advisors | Business Models, Scuttlebutt, Stocks | 3 CommentsWhat is the idea of a full-day outing/picnic for an average Indian middle class family? Think about it, what are the entertainment options available for a family even in Metro cities on weekends or when you have some relatives visiting you from outstation?
I bet the first thing that would come to your mind would be- visiting a mall, watching a movie and then having a nice meal at the food court. That sounds good and that is precisely what everybody around seems to be doing. The only issue there could be lack of decent content which you can watch with your family.
Other than that, what else comes to your mind? Think about full-day enterntainment options for an average Indian family. Frankly not many exciting options exist that are
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