One needs to pick and choose what they need to learn from the top investors who themselves continue to make mistakes with their own stock picks. The fact that Sajal Kapoor s advocating a PMS run by someone else shows that he can be biased in his views. Plus his condescending tone can be a big put-off. But again there is a lot of wisdom in some of the things he shares.
Coming to DCF, it is a useful tool which should be used for screening purposes and not as a true north for investing. If someone tells me that they know exactly how much a company is worth, from their DCF analysis, they are actually claiming that they can precisely predict the future, which is a sign of either hubris or lunacy. Equity investing is not an exact science.
Here is an interesting article that provides Warren Buffett’s and Charlie Munger’s views (and skepticism) on DCF.
Disc- Not invested in Natco yet.
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