Sashwath's Investing journey from 2019-2024... |Vinod Srinivasan| |Sashwath|

Summary

This video discusses the concept of 'Buy and Hold' investing, emphasizing the importance of moderation and pragmatism in investment strategies. The host, Vode, shares his personal experience with Finolex Cables, illustrating how to identify undervalued companies and the rationale behind holding onto them despite market fluctuations. He also addresses the importance of not treating the content as financial advice, but rather as a discussion of ideas and personal investment journeys.

Takeaways

• 📢 The video content is based on personal perspectives and opinions, not to be taken as professional investment advice.
• 🚫 The speakers are not registered investment advisers and do not claim to be; they caution viewers to exercise risk and consult with a professional for investment decisions.
• 🤔 The video discusses the concept of 'Buy and Hold' investing, questioning if it's always the best strategy given various life circumstances and financial needs.
• 💡 The importance of moderation in investing and spending is highlighted, suggesting a pragmatic approach to managing one's portfolio.
• 🔍 The 'Buy and Hold' technique involves identifying undervalued companies with strong fundamentals and holding them for the long term.
• 📈 The speaker shares their personal experience with investing in 'Finix Cables', illustrating how they evaluated the company's fundamentals and market position.
• 📊 The company's financial health, including low debt, strong reserves, and consistent promoter holding, was a key factor in the decision to invest.
• 📉 Despite a temporary dip in the stock's market value, the underlying business performance remained strong, indicating a potential undervaluation.
• 🛑 The video touches on a family control battle that may have affected the stock's market perception, but the fundamentals remained solid.
• 📚 Reference is made to 'Common Stocks and Uncommon Profits' by Philip Fisher for further insights on intrinsic value and investment strategies.
• 📦 The concept of 'coffee can' investing is introduced, suggesting a strategy of buying undervalued stocks and holding them for a long period, regardless of short-term market fluctuations.

Q & A

What is the main disclaimer given by the speaker at the beginning of the video?

The speaker clarifies that the content of the video is based on their own perspectives and opinions, and should not be taken as investment advice. They are not registered investment advisers and advise viewers to exercise caution and consult with a registered advisor before making any investment decisions.

What is the primary topic discussed in the video?

The primary topic discussed is the concept of 'Buy and Hold' investing, specifically in the context of pragmatism and when to consider exiting a position, using the example of Finolex Cables.

What does the speaker mean by 'coffee can investing'?

Coffee can investing refers to a strategy where one buys a group of stocks below their intrinsic value and holds onto them for a long period, metaphorically storing them away in a 'coffee can', without actively trading them for about 10 years.

According to the speaker, what are the key financial indicators to identify a good company for 'Buy and Hold' investing?

The key financial indicators include a company trading below its intrinsic value, having good fundamentals such as low or no debt, strong promoter holding, profitability, and competitive profit margins.

Why did the speaker choose to invest in Finolex Cables during the pandemic?

The speaker chose to invest in Finolex Cables because it was trading at a significant discount compared to its intrinsic value and its competitors, despite having strong financials, low debt, and a consistent promoter holding.

What was the situation with Finolex Cables' PE ratio during the period of 2019 to 2022 as described in the video?

The PE ratio of Finolex Cables started at 21 in 2019, dropped to 8 during the pandemic, and then rose to 20 and even peaked at 30 in 2021, before sliding back down to 42 in 2022.

What was the issue that caused investors to shun Finolex Cables compared to its competitors?

The issue was a control battle between family members who owned stocks in each other's companies, Finolex Cables and Finolex Pipes, creating uncertainty that deterred investors.

How did the speaker justify holding onto Finolex Cables despite its PE ratio rising to 30 in 2021?

The speaker justified holding onto the stock based on the rationale of 'coffee can investing', believing in the company's strong fundamentals and the likelihood of its price eventually reflecting its intrinsic value.

What is the speaker's view on the importance of promoter holding stability in a company?

The speaker views stable promoter holding as a positive sign, indicating that the promoters are not dumping the stock or engaging in shady practices, which can be reassuring for potential investors.

What advice does the speaker give regarding the timing of selling a stock that has increased significantly in value?

The speaker suggests that if a stock's price significantly exceeds its intrinsic value, it might be a good time to exit. However, they also emphasize the importance of holding onto stocks that have strong fundamentals and potential for long-term growth.

What resources does the speaker offer for those interested in learning more about investing?

The speaker offers two books they have written, 'The Alchemy of Money' and 'Ordinary Stocks, Extraordinary Profits', and provides a WhatsApp number and an email for interested individuals to procure copies or seek consultation.