Hi Deven,

There are 2 reasons

1. This is an opportunity to help people build wealth over long term. There are many people who are not aware about the basic tenets of building wealth through equities and who need financial advisor/MFD distributor to guide them.
2. It is a steadier business than equity investing. If somebody does it seriously ( I am not focusing so much on this right now), then it can become a significant annuity business. Plus there is no dearth of business for a motivated/dedicated person.

Regards
Nikhil

While not related to Saregama, but recently T series remade famous Falguni Pathak song ‘Maine Payal Hai Chhankai’ with Neha Kakkar. The former singer said she can’t do anything as she doesn’t have rights. This is why music artists can be skeptical of music labels when today releasing a song isn’t that big a barrier as in 90s.

I have shared my thought process on allocations before, you can read more here.

Also, this debate about diversification is rather meaningless. Our time should be spent more on improving our understanding about businesses or in formulating new investment strategies. There are people who have built meaningful track records with 5 and 5000 stocks, choose anything which resonates with you.

Also, given that I am running a long only folio, I cannot control absolute drawdowns. If market goes down, my folio will go down with it. However, I can control my own allocations on stocks on the basis of current risk reward and try to minimize mistakes.

Hi Ravi,

I feel its wrong to assume that lead acid batteries is a decaying industry. If we look at underlying industry trends, lead acid batteries are still growing volumes. Any my thesis with Amara Raja is that their margins will improve with lead prices coming down as their competitive positioning is the same (or even stronger) than the case 5-years back. I have shared my thoughts at link below.

Hi @ayushmit,

While I understand this is too old a post of yours (and possibly may not remember the details), it would be helpful if you can throw some light on (if possible):

“something didn’t seem working and all and I got out somewhere in midway.”
---- Were you able to find some red flag or it was more of a hunch ? Just trying to understand your thinking behind this statement.