A question that remained unaddressed in the last Q letter to Partners was “Why do we not own any Mid-sized Banks?”
Banks can be attractive businesses to own as they enjoy natural growth tail winds of growth while delivering 15-18% ROE. However, over the last decade, only 3 Banks (representing < 15% of Industry Assets) have delivered over 15% PAT growth or above 15% ROE consistently.
Read MoreIndia has implemented two significant regulations in the recent past. GST and the Bankruptcy Code. We argue that a third one is on the way which will lead to Re-pricing of Credit risk
Read MoreThe best businesses are those that can grow predictably while generating cash and can grow without any or very little reinvestment of this cash.
Read MoreIn our Q2FY18 letter dated 4 July 2017, we had made the following observations
Read MoreMarkets have done well over the last 12 months with the NIFTY up ~ 25%. A common question we encounter at present is whether one should add to their Equity exposure at present.
Read MoreRead MoreIt was the best of times, it was the worst of times
– Charles Dickens, A Tale of Two Cities
Tell me where I am going to die, so I will never go there
The above quote is attributed to Charlie Munger, universally acknowledged as amongst the wisest men in Investing.
Read MoreA common tendency while gauging valuation of companies is to estimate the one year forward multiple at which they trade. Our core investment approach is to “Buy Quality Companies at Fair Valuations”.
Read MoreThe power sector in India has been in the dog house for many years. High distribution losses and unbilled power has resulted in bankrupt SEBs (State Electricity Boards).
Read MoreIndian pharma leaders – for example Sun and Lupin- have witnessed a 25% price erosion from their highs. Are there structural challenges to growth or just a one off? What are implications for investors?
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