Shaishab Pran Bora

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 wh...

       A few weeks ago, I was reading a research report on the mutual fund industry, uploaded by one of the best brokers, Motilal Oswal. Though I am not a big fan of mutual funds, as I am in the same industry, sometimes I read some reports. I have come to know that the best performing fund in a particular year will not be on top in the next 3 to 5 years. This is the reality of the Indian fund industry.      If we look at the history of the Indian mutual fund industry, the best performing fund in 2009–11 was ranked 162nd in 2012–14. The best performance in 2010–12 was 123rd place in 2013–15. The best performance in 2011-13 was 172nd rank in 2014- 16. If we see the performance of the funds, it will be clear that the top 10 funds of a particular year will not be in the top 50 in the next 2-3 years. Now the question is: why does this happen?      It is human nature for everyone to want to be with the best. So, when we have lots of o...

     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...

    Yes, you read the title correctly, “In stock market wealth is directly proportional to Health.” Why Warren Buffet is one of the richest men in the world not only because of his wisdom, learning attitude or something else also because of his health. Only with proper health we can expect a long-life span and also, we can compound our wealth for a long long period.      Early this morning I got the news of the death of legendary investor Big bull of Indian equity market Rakesh Jhunjhunwala. He was a great guy with a big heart. He was one of the Indian investors to have faith in the Indian economy in the early 90’s and dream for the future and invest in India. He was one of my gurus in my journey in this equity market. Always thought retail investors to be rational, respect the market and most importantly to accept my mistake and learn from it.       On his 60’s birthday almost all Indian business media houses interviewed him. In...

When we enter in a particular market or a business, the first question that arises in our mind is “How this will be going to make money for me”? So, it is necessary to read about the history of the market to know how it has been working for last 3 to 4 decades to make money. Lot of people thought that making money in the market is a tough game but in reality, it is an easy game. So, lets see what I have found.                According to me, first we have to build that mindset to be an investor. An investor thinks for long term. Long means for 20, 30 years. Investing is nothing but sacrificing my present buying power to get huge benefit in future. If we see in Indian stock, we get various example how people made huge money for themselves. I studied few Indian stocks that made money for us in last 20 years. Let’s see if we invested 10,000 in these stocks in 1st jan,2001 what will be value of that investment in 1st April, 2022.  ...

          In Assam, we have seen that lots of people talk about the stock price but no one is concerned about the valuation of the company. Everybody is talking about " aji 100 asil kaile 110 hoi jabo "; "  abbe 2000 eta share r dam emn dami company kom dami share ko " . But the main thing is not the price of the share; it is all about the valuation of the company. No one is interested in reading a line about what the fucking P/E, P/B, ROE, and ROCE are ?           Let's first look at the " dami share kom dami share " concept. Consider A and B to be two companies. A has a $100 share price and B has a $2,000 share price. Which one is " dami share kom dami share " ?? Just think for a  moment .If A having number of share 400 and B having number of share 20. In both cases, the market capitalization of both companies will be the same.  Market Cap= Share price x number of share   For Company A=100x400=40,000 For Co...

          We generally calculate the CAGR of revenue growth of a company. But we will not calculate the CAGR of revenue or profit growth of our personal portfolio. So for me it is necessary to calculate our personal profit growth of our portfolio.           Let say that I have 6 company in my portfolio namely A,B,C,D,E,F. Let % of each stock allocation in my portfolio be           We can apply this in formula every quarter to calculated the % growth of our portfolio in respect to PAT, Revenue or whatever we want            Now let A,B,C,D,E,F will PAT growth at % wise in Q1 to Q2 or we can calculated in year on year Now the % allocation of each company of my portfolio will grow in term of PAT and so on. The formula becomes  % 𝑔𝑟𝑜𝑤𝑡ℎ 𝑜𝑓 𝑎 𝑐𝑜𝑚𝑎𝑝𝑎𝑛𝑦 𝑖𝑛 𝑝𝑜𝑟𝑡𝑓𝑜𝑙𝑖𝑜 = % 𝑔𝑟𝑜𝑤𝑡ℎ 𝑜𝑓 𝑡ℎ𝑒 𝑐𝑜𝑚𝑝𝑎𝑛𝑦 𝑓𝑟𝑜𝑚 𝑄1 𝑡𝑜 𝑄2 × % 𝑎𝑙𝑙...