Skip to main content

Management

I think in investing, identifying the management is one of the toughest steps I generally face. Identifying the right management is one of the longest processes. No one can identify the management in a week or months. Sometimes it takes years and years for people like me. Every time, a hidden fear appears within me, as if I misidentified the management or paid the wrong price. I know that making mistakes is normal in the equity market. I made lots of mistakes in the past and have made new mistakes. As time passes by, I am just trying to improve myself and become more conscious so that I will not repeat those mistakes that I have made in the past.

    I think that management is one of the most important parts of equity investing. If I pass this step, then I think my majority of work is done. Management is like a driver for me. Let's say I have to go from one place to another. Only a perfect driver will know which road is best, which road will use less fuel, or where those potholes are present. Choosing the best driver has become important for me. And the next important question that comes to my mind is which car will be driven by the driver. The car may be a BMW or a small middle-class car. But for me, it does not matter so much. The car should be fit and fine. Just think, if an unprofessional driver drives a BMW, it does not make any sense. He will be going to crush it for sure. So a professional, good driver is very important for my investment. If the driver drives a Maruti 800, that is also fine for me. It may take some extra time, but he will definitely drop me off at my destination. So, like the driver, the management of the business is very important for me to invest in. I just want to find some good management and sit back in his back seat and enjoy my journey. I understand clearly that there will be some potholes in my path, like inflation, rate hick, FIIs selling, commodity price hick, oil price hick, euro problem, war, job loss, and so on. But if I find the best driver, he will definitely take care of those potholes on my road and drop me off at my destination.

    I occasionally see some management. They unlock their value in the bull cartel. Raising the fund and buying some businesses that are not related to their existing business. I thought at a PE of 800,200, it did not make any sense to invest in the business for me. I am not going to live for the next 800 years from today. And I do not know what this world will look like after 500 or 800 years. Also, I am not a visionary thinker enough to think about what will happen after 800 years. So, it does not make any sense for me to invest in those companies.

    Management is everything to me. Finding good management in a good business is a gift from God. The Tatas are well-known for their management skills. Tata-like management in a good business-like IT. The world has seen its result, TCS. If we see TCS, 38,000+ PAT, ROCE 54.9%, ROE 43.6%. I feel so proud that India has such a great institute and also creates lots of jobs for Indians. TCS has a market cap of 11.5L Cr and is also growing at 15-20% annually. I just want to be under such management. If I find someone like this, then my job is done.

    Thank you for giving up your valuable time. Happy Investing.

 -Shaishab

Twitter

Comments

  1. atulSeptember 11, 2022 at 9:23 AM

    Well explained. Thank you for this financial education particularly equity investment beginners & boosting their confidence level

    ReplyDelete

Post a Comment

Popular posts from this blog

Opportunity Cost

Mistakes are an integral part of our life, and when it comes to the stock market, these are even more common. The goal is to reduce these mistakes as much as possible. I have  missed several opportunities in the last 3-4 years that had cost me to gain a significant amount of money. When I look back, I regret not recognizing those opportunities at the right time. The Case of Zomato: A Lesson in Hesitation One of the biggest opportunity costs I have paid was missing out on Zomato . When Zomato launched its IPO, I was completely uninterested due to its high valuation and lack of profitability. I started tracking it from its listing price of ₹126 , but I found the valuation too high for a serious investment. From July 2021 , the stock began to decline, reaching ₹40-50 . I observed it closely, analyzing its balance sheet multiple times. I still remember listening to Samir Arora in an interview mentioning that Zomato was a good buy at that price. At that moment, I was 80% convinced that...
Post a Comment
Read more

Course on Fraud Trading

Firstly, I am not a trader. I have not made a single trade in my life until now. My job is to be a full-time investor.      Let's take a look at the actual issues. Now a days trading became so popular in Assam. Specially, the selling of trading-related courses have became so popular. But it has been seen that a lot of fraud is happening in various parts of the India for the last few years. It’s so sad to see that the so called "trends" came so lately in Assam and people also get trapped in those.     Presently t here has been a large amount of fraud in the market, but people are not aware of it. So be very careful in trading your hard earned money. A lot of fraud come in front of the market, so do some analysis and try to figure out the real possible way to make money in the stock market.      From few days I have been seeing a lot of videos on the Assamese YouTube channel, but I have not found the answers that I have been looking for. Let's revie...
Post a Comment
Read more

Investing is all about "Law of the Farm"

     Hello everyone. Shaishab here. For the last few months I have been trying to get some concept of behavioral finance. It is one of the most important and vast portions of the equity market. Lots of concepts came under this behavioral finance like Sunk Cost Fallacy, Psychological Constraints, False Consensus Effect, Myopic Loss Aversion, Confirmation Trap, Peer Pressure Effect, Availability Heuristic and so on. I did not know much about this concept. Just trying to make a note on one of my favorite concepts so that after 10-20 years I can read it and evaluate my present thinking. It is one the biggest portion of the equity market. I did not know 1% of this, so I may be wrong in some portion. The main thing in behavioral finance is that, as Rakesh Jhunjhunwala said in 2012 in a lecture in Flame University “Behavioral Finance can not be taught, it has to be learned.”      Now comes to one of my favorite concepts of Behavioral Finance. Which is g...
Post a Comment
Read more