Recently, I delivered a lecture at IIM Kashipur.
The talk was structured around :"How business valuation in theory differs from business valuation in practice?"
The session was an interactive one and the quality of questions put up by students was very good.
The presentation can be viewed here.
6 comments:
Ankur,
Congrats on your new journey as Teacher.
Have you seen a business which earns less current ROE (due to fluctuating Profits) but will earn decent returns over the years and have good future potential. Infact Buffet talks about this kind of business in one of his letters ?
Regards
Vishnu
Hi Ankur,
Do you have a day job or are you a full-time investor managing your own money? Please respond if you feel ok.
Thanks Vishnu !
To answer your question, I would say that businesses which are cyclical in nature on the macro side but where individual companies have strong or dominant positions will figure as businesses with fluctuating ROEs but good returns over a long term.
Example Disa India. This business supplies machineries mainly to the auto sector and hence fluctuates in profits depending on the capex situation in the auto sector. It has dominant position [70%+ market share] and delivers superior ROCE and ROE over cycles.
Hi Anon,
I am a full time investor.
I manage my money and also advise clients on their portfolios.
Thanks
Ankur
That's great. May be you should consider a blog about your journey from employment to being a full time investor. That would be an interesting read.
Excellent! Thanks for sharing.
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