Investing

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Intrinsic Value: A Big Deal?

Here is an email I received from a tribesman yesterday…

I agree that evaluating and buying great businesses at the correct price (i.e. prices below the intrinsic value) is of utmost importance.

However, while I think I am getting better in evaluating the growth of businesses, their durable moats and creating my own check list of investing, my biggest challenge is in calculating the range of the “intrinsic value”.

I am still not able to calculate the risk associated with the stock and that is prohibiting me from confidently buying a stock which I believe is a value buy.

May I request you to please share any pointers, books, frameworks which can help me estimate the risk and/or this intrinsic value?

I believe this – calculating intrinsic value – is one big issue most investors face, and thus I thought of replying to this email via a post.

Well, the concept of intrinsic value is indeed tricky.

Mastermind Value Investing Course: Admission Now Open!

Mastermind Course at a Glance After innumerable requests and hundreds of emails from readers to re-open admissions to my one-year online course in Value Investing – The Safal Niveshak Mastermind – I’m finally doing it today. 🙂

Admission to the second batch of Mastermind is now open, and will remain so till 16th February 2014.

Basically, The Safal Niveshak Mastermind is a one-year course to help you reinvent how you invest, do work that matters, and in the process, get started on creating your financial freedom.

My idea of The Safal Niveshak Mastermind is two-pronged. This course will help you with…

Deep and accelerated learning in Value Investing and personal finance to help you manage your money better; and
Step-by-step guidance on turning your passion into a money-generating small business so that you can live your life the way you want.

I’ve sifted through a mountain of amazing books, documents, lectures, websites, and the last ten years of my personal experience as an investor and three as an entrepreneur to ensure that I bring the best ideas and lessons for you in value investing, personal finance, and living life on your own terms.

The goal of The Safal Niveshak Mastermind course is simple – To help you get richer every single day.

What You’ll Get By Joining
The Safal Niveshak Mastermind
I’ve lined up a lot of things that you will receive when you become a part of The Safal Niveshak Mastermind. Here’re the key ones…

1. Premium Course in Value Investing
This course will include…

50+ lessons and several hours of video and audio classes apart from a few real-life case studies that will help you learn the nuances of Value Investing and how you can apply it to create long-term wealth through stock investing.
Lessons on identifying moats and analyzing specific sectors to help you build your circle of competence.
Lessons on building a latticework of mental models – the Charlie Munger way – to make better investment decisions.
Lessons on calculating Intrinsic Values of stocks.
Lessons on creating a portfolio of high-quality stocks.
Exclusive Forum to participate in learning exercises and discuss practical examples so that you can gain experience in doing your own independent analysis.

Here is the list of lessons you will learn as part of the Value Investing Course over the next one year…

Modules of Mastermind Value Investing Course

Plus, here is the ‘members-only’ Mastermind Forum where you will participate in Exercises and discussion with fellow students…

2. Course: Turn Your Passion into Paycheque
This is a course that a lot of tribesmen have requested me for. Here, you will learn the step-by-step method of turning your passion into a regular stream of money – or an alternative source of income – so that you can do what you love to do, and not be worried anymore about someone else deciding your financial life and future.

Through this course, I will share my experiences in changing my own life by reinventing the way I work, and guide you on how you can do it for yourself.

3. Special E-Books, Workbooks, Videos and Podcasts
From time to time, I will also send you special e-books, workbooks, videos and podcasts…all with the view of enhancing your learning in investing and personal finance, and turning your passion into lifelong earning.

You will receive all lessons in HTML and downloadable PDF formats, plus some in video and audio formats, so that you can go through them at your comfort.

Sounds a Lot, Right?

You see, it is not necessary to do extraordinary things to get extraordinary results in life.

What you need are simple ideas, and the discipline and patience to follow them.

All learning you will receive through The Safal Niveshak Mastermind will be geared in that very direction – to guide you with simple ideas that you can practice with discipline and patience to achieve your goal of living a comfortable financial life.

Now, if you are willing and ready, I invite you to join me in this endeavour.

By the way, here is what a few Mastermind subscribers have to say about their experiences with the Course…

What Mastermind Subscribers Have to Say…

The Mastermind course is top class. It taught me to (1) Read annual reports (2) Be Rational (3) Be Multi-disciplinary thinker (4) To Invert. I would have been a better investor if this course was available to me 10 years back.

The first stock that a retail investor should buy is “Mastermind”. Why? Its price is very low compared to its intrinsic value. You have a big Margin of Safety.

~ Jana Vembunarayanan

Mastermind is one of the best courses I have ever taken. The best thing about the course is the emphasis on behavioural aspects in investing.

I am from the finance domain and I can most confidently say that most of the other courses – including top MBA programmes and financial modeling / equity research training modules – do not pay adequate attention to this aspect.

~ Gaurav Bhagwat

If Mastermind existed at the time of my entry into markets, I would have saved myself from a decade of investing mistakes and plenty of painful losses.

~ Eswar Santhosh

The Mastermind course is the best investment I have ever made, and I am thoroughly enjoying it. The content is excellent and how I wish I could have done this course 15 years ago.

Its price is way lower than its Intrinsic Value!

~ Prakash Patel

I consider Mastermind Course as one of my life changing journeys.

I believe that the value investing principles taught in Mastermind can not only be applied to managing money but also to other areas of life like doing better work, and managing good relationships.

~ N. Venkateswaran

Mastermind Course truly reflects its name – “Master the Mind”. The entire course is structured beautifully. I give a thumbs up for the course!

~ Arti Rungta

Now, if you are interested in joining the Mastermind Course…

Let Me Offer You a Deal!
The Safal Niveshak Mastermind, with all its invaluable contents as I have mentioned above, is priced at Rs 14,500/- (incl. taxes) for an year’s subscription.

However, if you subscribe to the Course by 10th Feb. 2014, you can claim a Special Discount of Rs 1,000/- and thus pay Rs 13,500/- only.

You see, this is the best price I can offer you, given the immense value I believe Mastermind will add to your life for years to come.

But don’t just believe me! Here is what existing students of Mastermind have to say on the ‘price vs. value’ equation of the Course…

The first stock that a retail investor should buy is “Mastermind”. Why? Its price is very low compared to its intrinsic value. You have a big Margin of Safety. ~ Jana Vembunarayanan

The Mastermind course is the best investment I have ever made. Its price is way lower than its Intrinsic Value! ~ Prakash Patel

Now, if you are interested to reinvent how you invest, do work that matters, and create your own financial freedom…

Click Here to Join Mastermind Now!
The Safal Niveshak Mastermind course is the one tool that can help you…

Create life-changing financial habits
Transform how you make your living
Create your financial freedom

It’s your chance to break the shackles, reinvent the way you invest, do what you love, and create a new future.

After all, it’s your life and you wouldn’t want to waste it living someone else’s.

With respect,
Vishal Khandelwal
Chief Tribesman, Safal Niveshak

P.S. If you liked what you just read and want your friends and colleagues to also know about this Course, kindly forward them the link to this page.

P.P.S. In case you face any issues making the payment, please write to me at vishal@safalniveshak.com or call me at +91-80970 73918.

P.P.P.S. Please read the “Frequently Asked Questions” to avoid future confusions/conflicts.

Safal Niveshak StockTalk: Info Edge

Statutory Warning: This report may cause a reaction, and acting on it can be injurious to your wealth.

I recently talked to the management of Info Edge (India) Ltd. (IEL) to understand the company’s business, what drives it, and the challenges it faces.

Here is analysis of the business for you, with the view that it would help you understand it better.

Let’s start with understanding the business and its core underlying dynamics.

Info Edge’s Business
IEL is India’s leading online classifieds company with presence in the recruitment, matrimony, real estate, education and related services.

Unlike the first impression of it being an “Internet or dotcom” business, look deeper and you will see a “media” business (classifieds) that is on the Internet.

Do You Own the Stock or Does The Stock Own You?

That successful investing is more a matter of a strong heart than a strong mind is something I have repeated innumerable times on Safal Niveshak.

Of course, succeeding as an investor requires a strong mind – the ability to study and identify the good and great businesses while avoiding the gruesome.

But what you need is a stronger heart so as to keep your emotions at bay and behaviour in check, especially when stocks plunge – or soar.

I met a friend yesterday who has multiplied his money 8x in Symphony Ltd. in less than four years. Prior to that, I met a relative few weeks back who has grown his money in Bajaj Finance 6x in less than 5 years.

Surprisingly, instead of being happy about their stupendous gains in these stocks, these people were suffering from a peculiar fear.

In fact, I must not term their fear as surprising or peculiar because this is the exact emotion I have gone through a few times in my own investing life.

Like when I was sitting on a 5x gain in Page Industries in January 2011 and 7x in KPIT Technologies in October 2013.

Do You Want to Meet Me in ‘Your’ City?

2 years. 8 cities. 20 sessions. 500+ tribesmen.

Well, that’s the short story of Safal Niveshak’s Art of Investing Workshop, which I started in April 2012 with the hope that it will find at least a few takers.

However, the response I have received in these two years has been amazing, and beyond my expectations. Here’s some proof…

2012 Workshops
Bangalore

New Delhi Mumbai

Pune Ahmedabad

2013 Workshops
Bangalore

Bangalore Chennai

Mumbai Kolkata

New Delhi

Pune Ahmedabad

Hyderabad

2014 Workshops
Bangalore

I have been stumped by this tribe’s willingness to learn, whichever of the eight cities I have been to.

Now, I wish to take the Workshop to more Indian cities in the future.

An Excel to Save Your Life

While India is ranked amongst the skinniest nations in the world (as a large percentage of people cannot afford food), there is no doubt we are getting fatter and unhealthier.

This is especially true of an average adult in urban India, who combines the stress of work with junk food and with sedentary lifestyle, all of which makes for a lethal combination.

Now, many people erroneously suggest that education is the answer to achieving good health. Really?

In 2014, we have more education, information, awareness, policies, programs and getting-in-shape resolutions, than any other time in history. But the fact is that in 2014, more people reading this would get weightier, and unhealthier.

The simple reason you see more young people visiting doctors and hospitals is – we have created a lifestyle that is unsustainable.

What My Little Girl Taught Me About Investing Wisely

“Why can’t I buy that toy, papa?”

“You already have another one like that.”

“But why can’t I buy one more?”

“You won’t like playing with two similar toys. Isn’t it?”

“Why are you saying this?”

“I know that dear, because I was a kid myself!”

“Why have you grown up, papa? If you were still small, you could have played and enjoyed with me and my toys!”

“Everyone has to grow up, my baby!”

“Why papa?”

Tata Motors: Will You Play Devil’s Advocate for Me?

Rolf Dobelli wrote this in The Art of Thinking Clearly…

Have you ever bitten your tongue in a meeting? Surely. You sit there, say nothing and nod along to proposals. After all, you don’t want to be the (eternal) naysayer. Moreover, you might not be 100% sure why you disagree, whereas the others are unanimous – and far from stupid. So you keep your mouth shut for another day.

When everyone thinks and acts like this, groupthink is at work: this is where a group of smart people makes reckless decisions because everyone aligns their opinions with the supposed consensus. Thus, motions are passed that each individual group member would have rejected if no peer pressure had been involved.

Nowhere do you see groupthink than in the world of business and investing.

Whether it’s the case of a CEO allocating capital, or an investor doing so, it’s easy to fall into groupthink and allocate precious cash on things that “seem” right because others also think so, rather than those that “are” right.

Launching StockTalk 3.0

I am writing this in the month of January, so this is not an April Fool’s joke. 🙂

I am planning to re-launch the StockTalk initiative, and in a new avatar (again!).

If you have been a reader of Safal Niveshak for long, you know that I launched the original StockTalk initiative in November 2011.

My plan was to take requests from readers to research on specific companies and write reports explaining their businesses, without making any recommendations.

However, I stopped writing those reports after covering twelve companies.

How to Lose Big Money in 2014

“All men’s miseries derive from not being able to sit in a quiet room alone.” ~ Blaise Pascal

One of the many investing mistakes I made during the early part of my investing career was to be rash with cash.

Any extra cash I ever had was immediately invested in the stock market. Cash in bank was considered a wasted opportunity and every chance to “let-me-buy-stocks-now” was grabbed upon.

In the pre-2008 period, I invested a lot of the cash while keeping my eye on stock prices that were rising incessantly.

I see a lot of investors making a similar mistake now.

After getting frustrated by the way stock prices have performed over the past few years, any stock market rise is first disbelieved and then when prices rise further, people jump in so as to not miss out on any further rise.