There are more opportunities now vs in 2021 where it was much harder to find good value companies. In current market, I am facing more problems in deciding what not to buy as a lot of very good companies are trading at cheap valuations
Unfortunately, Shri Jagdamba doesn’t share much information with investors, even their annual reports do not have much details. One can try to look at other proxy sources of information like trying to figure out US residential demand, sales trajectory of their largest customer Epilay, etc. but its very hard to get much insights beyond what we already know. About liquidity, volumes in smaller cos dries out during bear markets. Its a feature meant to be used by investors rather than a bug.
In my observation, problem of information availablility is widespread in very small cos. My way of dealing with this is to allocate smaller positions and diversify extensively. Also, beyond a point I dont see the logic of tracking companies very closely. Having more data points has often not resulted in superior investing results for me, instead sometime I get an interesting insight and that simple logic helps me holding through a longer period of time.
For e.g. I have been buying Propequity recently where the only meaningful insight I have is, this is one of the few Indian cos with real estate data for last 15+ years. This data required investments of 70-80 cr., company’s enterprise value is around this number. Indian real estate data should be more valuable than 100 cr. I dont know if this logic sounds reasonable to you, but I feel this company’s market cap should be significantly higher than what its quoting at today (how much? I dont know). Side note: Propequity is the first company that Berkshire has partnered with for its real estate activities in India.
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