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Learning from the Book: Masterclass with Super Investors

Ramesh Damani
  • Habit of reading international press. Know what is happening in other countries/international cos
  • Stock market is about looking ahead & not looking behind
  • Big picture thinking about valuation
    • Opportunity size
    • Bull market or Bear market. Leader in bull market. When bear market starts gets punished too like crazy
    • Bull market: each time the leader falls, others come in to take the value up again. Similar in bear market, but in opposite direction
    • Look at business level valuation. Valuation of similar cos in other parts of world. Relative valuation. Worth of 100cr...this much stake or 2 flats in posh Mumbai
  • Simple one-line thesis (my observation)
  • Market gives you money when you are uncomfortable
    • Averaging up
    • If u truly believe in idea...u think management also doesn't know somethings abt the co, undervalued and risk-reward in ur favour....then bet big. Portfolio should afford u to do so
  • Buy when bear market bottomed out....Have patience to be in for say a few years. Then ride when bull market takes off
  • Think and look for next opportunities and next bull market
Hiren Ved

  • Read. Interact with companies, people, clients, businesses. Gain business insights from various people, could be your customers too. 
  • Primary research helps (Scuttle-butt). Do triangultion. Validate from various sources
  • Have a good Process. System

  • Discipline. Self-awareness

  • Experience. Judgment. Reflect

  • Reflect on what worked, what didn't work. Continously. Will help in improving your process and judgment.

  • Risk Management System

  • Learnability - Learning new things. Improving your process by reflection
  • Being zen-like
Kenneth Andrade

  • Capital Efficiency
  • Two factors: Profits. Capital Employed
  • Profits - mostly a factor of industry environment
  • Capital Employed - talks about management quality
  • When industry is doing well many make money
  • When the going is tough, lower capital deployed cos, will have this lever to play with
  • At peaks, good managements won't add up debt. Or do unnecessary projections
  • At peak, look at the gross block added to know management quality
  • Market share doesn't come from capacity addtion, but customers moving to stronger players. Consolidation during dowturns, when several cos go bust

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