Simple Investing

Power of Independent Thinking – Short Story of Tata Investment Corporation

Had been wanting to jot down my thoughts on this topic since long but coudn’t get time…finally thought would jot down in few minutes whatever I can…

Well this is story of an investment company which is always available at big discount, has No operating income and its worth can easily be calculated as an NAV by adding up its constituent company/ies, the discount percentage range is eternally fixed and one can play a mean reversion as discount increases and sell as discount nears the upper limit of the eternal fixed range…

This is what I learned & acquired from books, forums, markets etc. and is the acquired thoughts, the acquired knowledge. It can certainly help me make good profits…

But the real game changer could have been the power of independent thinking
Investment companies may not be mere NAV products and mean reversal candidates. They may hold deep value. Many would say that the deep value may not be realized as they would never sell their constituents but for a company like TATA…the power of unlisted Tata Sons, Tata Digital, Tata technologies etc. could have been a game changer…not to mention the stupendous rise of its major constituents like Trent & Tata Consumer…

I had been tracking Tata Investment Corporation since almost a decade and gave it a miss thinking I already hold Tata Consumer & Trent and also because of above acquired knowledge. I ignored the power of my independent thinking of the tremendous value in unlisted companies it may hold and also any restructuring within holdings of Tata group companies that may positively surprise…and I paid a heavy opportunity cost so far in terms of both price appreciation & dividend yield!

With independent thinking we can build wealth in companies we are comfortable with to ride…and I missed riding this one so far…

EDIT: This story strongly corelates with one of my first story in this thread of a stock (Tata Communications) I liked, invested and sold early because of acquired knowledge and external noise.

Disc: Not invested in Tata Investment. Tracking it since a decade. Post only for academic purposes & learning. Not eligible for any advice. Not a buy/sell recommendation.