"Identifying Businesses exhibiting the Capacity to Suffer"

Our Second Article on CNBC TV18 Website Moneycontrol.com - "Identifying Businesses exhibiting the Capacity to Suffer" - https://t.co/TSICh8FXp7 

Over the last few years we have realised that investors fail to appreciate great businesses and managements which display the capacity to suffer.

Capacity to suffer is the management's ability to endure through early burdens on reported profits in short run in order to advance their long term competitive advantage.

“Capacity to Suffer” is a key ingredient for long term wealth creation and one must not make the mistake of punishing companies in the short run for choosing pain to develop long term competitive advantage.

We wrote briefly about it earlier on https://twitter.com/ashishkila/status/614794354381565952

The current article is an attempt to briefly summarise a few key points from our presentations on the aforesaid topic this year...(Thanks - Nikhil /moneycontrol.com /(‪#‎PerfectResearch‬ )

Disclaimer: 

Acknowledgement

The author (Mr. Ashish Kila) would like to thank his entire team, for their extensive help in preparation of the above note.

 

Disclaimer

• Nothing in this article is, or should be construed as, investment advice. The stocks mentioned in the post are for educational purpose only and are not recommendations, the purpose of this post is to show capacity to suffer as a framework which an investor can apply to any company.
• This is not an offer (or solicitation of an offer) to buy/sell the securities/instruments mentioned.
• All the posts on this blog, including this one, are for educational and discussion purposes only.
• Please do not take buy/sell or any investment decision based on articles you read on the blog. These are only meant to provide information and initiate discussion. Final decision is and always should be, yours and only yours.
• We may or may not have a position in the stocks discussed on this blog

Video of our presentation on 4C's of Investing Process (Cloning, Checklist, Capital Allocation & Checkout)

Hi

Please find below video of our presentation of 4C's of Investing Process (Cloning, Checklist, Capital Allocation & Checkout) made at FLAME Investment Lab - Alumni Meet in Pune recently. Foundation for Liberal And Management Education (FLAME)

We had the opportunity to present the ppt at IIF & OctoberQuest Forums as well. Will share updated presentation as well after incorporating the feedback received from the various forums in the coming future.

Look forward to your suggestions on how to improve the investing process...

Link for the video: https://www.youtube.com/watch?v=itUvYTZhH5k

Facebook Links: -
https://www.facebook.com/ashishkila/posts/10154825973115007
https://www.facebook.com/ashishkila/posts/10154391861055007

Blog Link for PPT:-
http://perfectresearch.blogspot.in/2014/07/4cs-of-investment-process-cloning.html


Acknowledgement

The author (Mr. Ashish Kila) would like to thank his entire team, for their extensive help in preparation of the above note and video.

 

Disclaimer

• Nothing in this article is, or should be construed as, investment advice.
• This is not an offer (or solicitation of an offer) to buy/sell the securities/instruments mentioned.
• All the posts on this blog, including this one, are for educational and discussion purposes only.
• Please do not take buy/sell or any investment decision based on articles you read on the blog. These are only meant to provide information and initiate discussion. Final decision is and always should be, yours and only yours.
• We may or may not have a position in the stocks discussed on this blog

4C's of Investment Process - Cloning, Checklist, Capital Allocation & Checkout (When to sell)

Hi

Over the last year we have been mulling over these topics especially Capital Allocation and When to Sell. The presentation is an attempt by us to collate the thoughts from the Gurus, Mentors and Friends we follow and then discuss our inference of the same.

The presentation was made at FLAME Investment Lab - Alumni Meet in Pune recently.
One can read about Flame Investment Lab here.

We look forward to your comments and suggestions on how we can further improve this process...

4 C's of Investment Process - Cloning, Checklist, Capital Allocation, Checkout from perfectresearch

To download the Presentation- Please visit this link

Acknowledgement

The author (Mr. Ashish Kila) would like to thank his entire team, for their extensive help in preparation of the above note.

Disclaimer

• Nothing in this article is, or should be construed as, investment advice.
• This is not an offer (or solicitation of an offer) to buy/sell the securities/instruments mentioned.
• All the posts on this blog, including this one, are for educational and discussion purposes only.
• Please do not take buy/sell or any investment decision based on articles you read on the blog. These are only meant to provide information and initiate discussion. Final decision is and always should be, yours and only yours.
• We may or may not have a position in the stocks discussed on this blog. 

Open Offers

Hi,

As discussed last year in the ppt on delisting, given the dwindling opportunities in Delisting space and the worsening risk-reward ratio we have been in search of other special situation opportunities.

The ppt below is an attempt to discuss another special situation opportunity "Open Offers" in detail.

We would like to emphasise that certain portfolio allocation to such special situations gives you absolute returns in a bear market as well. Also one can also shift such positions at minimal loss into long term opportunities if meanwhile market corrections present a more lucrative long term bet.

The following ppt on open offer was made this year at the ISG forum meet in Delhi, CFA Delhi Chapter meet in Delhi and then the IIF forum meet in Mumbai. We have tried to further revise the ppt as per the feedback received.

Look forward to your valuable comments and suggestions :)

Open Offers from perfectresearch

Acknowledgement

The author (Mr. Ashish Kila) would like to thank his entire team, for their extensive help in preparation of the above note.

Disclaimer

• Nothing in this article is, or should be construed as, investment advice.
• This is not an offer (or solicitation of an offer) to buy/sell the securities/instruments mentioned.
• All the posts on this blog, including this one, are for educational and discussion purposes only.
• Please do not take buy/sell or any investment decision based on articles you read on the blog. These are only meant to provide information and initiate discussion. Final decision is and always should be, yours and only yours.
• We may or may not have a position in the stocks discussed on this blog. 

Role of Management in Long Term Investing

Hi

In our investing experience so far,

in certain cases we have lost money because we didn't pay too much attention to the role which management plays in creating or destroying value.

We used to focus more on inherent cheapness and business quality. Also, since we used to end up looking more at midcaps and small caps in our pursuit for multibaggers, the issues of corporate governance used to surface more.

So in this presentation which was made at an investor forum recently, we decided to focus on the aforesaid topic and stress upon the fact that even though the business may continue to make tons of money, it is the management which will determine whether it will flow to you as a shareholder or not.

One thing which we would like to mention is that in the pursuit of high corporate governance standards, we found a lot of the small and midcap managements wanting and having some skeletons in the closet and it has been difficult to classify them as black or white as they are more like shades of grey with different degrees of darkness.

In this regard, the words of fund manager Chuck Ackre (covered in the ppt) offer some light

 

Ascertaining management integrity is “the tough question and the answer which often takes us years to discover.” One short cut Akre uses is to favor “owner operators,” which refers to managements that own a lot of company stock. The thinking is that if management’s financial interests are aligned with shareholders, they will do right by shareholders regardless of integrity. 

With this we would like to end our soliloquy and present you our presentation below.

We look forward to your comments and suggestions ...

  

Role of management in long term investments from perfectresearch

Acknowledgement

The author (Mr. Ashish Kila) would like to thank his entire team, for their extensive help in preparation of the above note.

Disclaimer

• Nothing in this article is, or should be construed as, investment advice.
• This is not an offer (or solicitation of an offer) to buy/sell the securities/instruments mentioned.
• All the posts on this blog, including this one, are for educational and discussion purposes only.
• Please do not take buy/sell or any investment decision based on articles you read on the blog. These are only meant to provide information and initiate discussion. Final decision is and always should be, yours and only yours.
• We may or may not have a position in the stocks discussed on this blog.