A very warm welcome to Mr. Warren Buffett – my guru & the richest person in the world. Above all a living legendm, a great philnthropist & above all a great human being – on his maiden visit to India.
Today we touch on one of the most important concepts -which forms the cornerstone of Mr. Warren Buffett investment philosphy
Intrinsic Value
Very important concept. It is the Cornerstone of value investing.
Let us take the example of a House built. At any time it has an intrinsic value comprising of cost of land, material used, labor etc.. All these add up to form its Intrinsic Value.
Similarly for a business- its assets- plants, brand value, distributor network, customer loyalty, cash balance etc. add to make up the intrinsic value of a business- what exactly is the business worth?
To buy the shares of a business when they are selling for less than their Intrinsic Value is very important & is the right thing to do. When one is doing that one is investing. Otherwise one is speculating.
Tuesday, March 22, 2011
Tuesday, March 1, 2011
Bangkok diaries- Does the budget matter?
Bangkok diaries- Does the budget matter?
Hairat Mubark to all!!
Who remembers the pompous announcements made in last year budget? Who will remember the pompous announcements made in this year budget. No one. As a true congressman P.M.( Pranab M. & not the P.M.) knows that India progresses by the Grace of God & the hardwork of its citizens. So they just do nothing. That is what exactly he has done in this budget. Nothing.
Everybody knows that India was a economic superpower when native Americans roamed around U.S.A.. I was recently traveling around Thailand & the whole country ( not only cities like Bangkok, Pattay, Phuket but even plaves like Krabi is prosperous. By the way 1 baht =Rs1.6 & last time I traveled to Thailand it was 1 baht= Rs1.3). They don’t know what an ELECTRICITY CUT means. Roads are excellent. Shops -7 eleven are open 24 hours selling everything from liquor to candy. But now leave aside the developed world, we are decades behind even Thailand!
Why? One big reason is the attitude of the govt.. Outside India, govt. & its agencies exist to facilitate life of people. But in India the omnipotent sarkar is all the time working overtime to make life difficult for its citizens. Lrt us hope that this changes in future.
Hairat Mubark to all!!
Who remembers the pompous announcements made in last year budget? Who will remember the pompous announcements made in this year budget. No one. As a true congressman P.M.( Pranab M. & not the P.M.) knows that India progresses by the Grace of God & the hardwork of its citizens. So they just do nothing. That is what exactly he has done in this budget. Nothing.
Everybody knows that India was a economic superpower when native Americans roamed around U.S.A.. I was recently traveling around Thailand & the whole country ( not only cities like Bangkok, Pattay, Phuket but even plaves like Krabi is prosperous. By the way 1 baht =Rs1.6 & last time I traveled to Thailand it was 1 baht= Rs1.3). They don’t know what an ELECTRICITY CUT means. Roads are excellent. Shops -7 eleven are open 24 hours selling everything from liquor to candy. But now leave aside the developed world, we are decades behind even Thailand!
Why? One big reason is the attitude of the govt.. Outside India, govt. & its agencies exist to facilitate life of people. But in India the omnipotent sarkar is all the time working overtime to make life difficult for its citizens. Lrt us hope that this changes in future.
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