It is always expensive to buy books related to investing. i have seen books recommended by sanjay bakshi , vishal kandelwal, and many other.
And these books are not available on normal book renting websites.
So i was thinking if any of you guys know about borrowing the book
Very true. I see merit in what you say.
Like your work, I used to think with all this data. But I have moved on as I have got it wrong most times with these approximations.
Somewhere I read an academic paper – Best market returns happened in countries like Finland and Switzerland in the 80s when the economy was not growing fast. Reason attributed- In a stable slow growing economy, capital allocation was easier. Misallocation and experiments were minimized. Management didn’t waste money on so called innovation, but promptly paid it back to the shareholders saying “Thanks”.
Estimating growth rates is very difficult. You can have a range of outcomes. Market growth doesn’t guarantee company’s growth, to start with. Companies with increasing moat (~ increasing RoE) can claim at least existing growth rates. In bull markets, we try to estimate and invariably overpay for growth. In bear markets, we focus on value (with minimal growth projections) and get it right. Even though growth and value are connected at the hip, very few get it right focusing on growth estimates.
The only exact thing is the price you pay. Everything else is an approximation.
@hsriram – I get your point that a value investor needs to focus on the intrinsic value. But arriving at the intrinsic value often requires us to make some growth assumptions. So what growth assumptions should we make?
Looking at the growth assumptions that is touted around, I wanted to validate. Sure someone, somewhere, sometime will always be growing at a scorching pace; someone at a slower pace. So if I were to ask myself a question – suppose I throw a dart on the ticker board, what growth rate should I guess for the stock the dart hit? That led me to the question of anchor rate of growth.
You may ask well, just take the GDP growth rate. But as I conclude in my article, GDP growth rate has been poor, very poor, in explaining earnings growth. Maybe take sector growth, but they keep changing very now and then and hence not as reliable as I would like. Who fore saw negative growth for motorcycles a few years ago?
Here we go the information shared with exchanges –
PI Promoter stake sale.pdf (152.8 KB)
Edit:
Ok, now we know the reason behind the volatility.
I think without making conjectures, lets wait for definite news to come through.
And then watch the reaction.
All these things dont change the fundamentals of the company at all. So as I said before once these events are through, focus would again shift back to business.
they sold around 6% stake in the company
its on business channel
promoter sold and fii picked up
i said what if ,the block deal that 7million shares indicate so it cant be ruled out
Are you sure Cartica has sold their stake. They bought the stake recently on June 15, 2015, “Cartica Capital picked up 5.29 million shares, representing 3.88% stake in PI Industries at an average price of Rs 605 per share on the BSE, according to bulk deal data available with the stock exchange”