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Best Savings Plan
Value investing: The secret market mantra that nobody follows
•Some time back, I came across an article with the rather provocative headline, '30 Years Ago,
Warren Buffett Gave Away The Secret To Good Investing And Correctly Predicted No One Would
Listen'. Attention-grabbing headlines on websites rarely tend to be true, but this one is an
exception.
•In fact, the secret that Warren Buffett gave away had been revealed 50 years earlier by
Benjamin Graham. It was 1934, the year Graham and his collaborator David Dodd published
their seminal tome Security Analysis. Even though 80 years have gone by, the basic principles
that are at the heart of this book continue to hold true. They also remain thoroughly ignored by
investors.
•Here's what Buffett says the followers of these principles do, "...they search for discrepancies
between the value of a business and the price of small pieces of that business in that market.“
•There are two parts to this. One is to think of stock investing only as an
evaluation of a business for the purpose of buying a piece of it. And the
other is to stay focused on this gap between the value and the price. Put
together, this is what is called 'best savings plan ‘
•Value investing has few followers in India, but that's something that needs to
change as our equity markets evolve. For long, equity investing in India has
mostly been about chasing growth. Even our largest companies often grew at a
pace where it became less important to try and guess the inherent value of the
business simply because that value could change so rapidly.
•The most extreme 'anti-value' investing that appears to be going on in India is in e-commerce and
related fields.
•Here, in what is a throwback to the worst excesses of the dotcom era, we have venture capitalists
throwing thousands of crores of rupees at businesses that have no easy way to profitability.
•It takes my mind back to India's original high-profile ecommerce portal, one jaldi.com which was
run by a company called KLG Systel during the boom. KLG Systel was liquidated in 2014.
•Will the current e-commerce darlings eventually face the same fate? Given their CEO's open disdain
for profits, the tenets of value investing say that they might.
[Source: http://economictimes.indiatimes.com/wealth/savings-centre/analysis/value-investing-the-
secret-market-mantra-that-nobody-follows/articleshow/47307990.cms]
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Best Savings Plan - Value investing the secret market mantra

  • 2. Value investing: The secret market mantra that nobody follows
  • 3. •Some time back, I came across an article with the rather provocative headline, '30 Years Ago, Warren Buffett Gave Away The Secret To Good Investing And Correctly Predicted No One Would Listen'. Attention-grabbing headlines on websites rarely tend to be true, but this one is an exception. •In fact, the secret that Warren Buffett gave away had been revealed 50 years earlier by Benjamin Graham. It was 1934, the year Graham and his collaborator David Dodd published their seminal tome Security Analysis. Even though 80 years have gone by, the basic principles that are at the heart of this book continue to hold true. They also remain thoroughly ignored by investors. •Here's what Buffett says the followers of these principles do, "...they search for discrepancies between the value of a business and the price of small pieces of that business in that market.“ •There are two parts to this. One is to think of stock investing only as an evaluation of a business for the purpose of buying a piece of it. And the other is to stay focused on this gap between the value and the price. Put together, this is what is called 'best savings plan ‘
  • 4. •Value investing has few followers in India, but that's something that needs to change as our equity markets evolve. For long, equity investing in India has mostly been about chasing growth. Even our largest companies often grew at a pace where it became less important to try and guess the inherent value of the business simply because that value could change so rapidly. •The most extreme 'anti-value' investing that appears to be going on in India is in e-commerce and related fields. •Here, in what is a throwback to the worst excesses of the dotcom era, we have venture capitalists throwing thousands of crores of rupees at businesses that have no easy way to profitability. •It takes my mind back to India's original high-profile ecommerce portal, one jaldi.com which was run by a company called KLG Systel during the boom. KLG Systel was liquidated in 2014. •Will the current e-commerce darlings eventually face the same fate? Given their CEO's open disdain for profits, the tenets of value investing say that they might. [Source: http://economictimes.indiatimes.com/wealth/savings-centre/analysis/value-investing-the- secret-market-mantra-that-nobody-follows/articleshow/47307990.cms]
  • 6. To know more on Saving Plans visit: https://www.bajajallianz.com/Corp/savings-plans/savings-plans.jsp