SARASIJ'S BLOG

MONDAY| VOL—IV/2025/15 DECEMBER

  NEWS & VIEWS|||SARASIJ|||15/12/2025. MONDAY| VOL—IV/2025/ 15 DECEMBER OPINIONATED, FOR FREE CIRCULATION. सत्यं ब्रूयात् प्रियं ब्रूयात् , न ब्रूयात् सत्यम् अप्रियम् । प्रियं च नानृतम् ब्रूयात् , एष धर्मः सनातन: ॥ TRANSLATION:   “Speak the truth, and speak that which is pleasant. Do not speak an unpleasant truth, and do not speak a pleasant untruth. This is the age-old dharma.” INDIA: (GOI, SWARAJYA, VISHWAMITRA, HINDU POST, INDIA TODAY). PM Narendra Modi to embark on a three nation visit to Jordan, Ethiopia and Oman today. The Government of India showcased the country’s pioneering achievements in rural development, women’s empowerment and climate-resilient agriculture at the IFAD–India Day event held in Rome. The occasion marked the celebration of India’s long-standing and successful partnership with the International Fund for Agricultural Development (IFAD). Vice-President C P Radhakrishnan has released a commemorative postage stamp in honour of Empe...
Post a Comment

 

HOW TO SELECT AN EQUITY INVESTMENT COMPANY?

12 COMMANDMENTS

SARASIJ MAJUMDER

01.0—By investment, we mean only value investment—and not TRADING.

02.0—Compounding is a great process for multiplying money/wealth. Compounding can happen, if one remains invested for a long time. Hence—purpose is to find a Company, who will beat PAR, consistently, over a long time. The question is, how to do that?

03.0—First we select one of the three BUSINESS MODELs:--BàB; BàG;  & BàC. I don’t want to discuss the merits and demerits of above three models. Our preferred model is BàC. This is direct, more reliable, and predictable. Manufacturers of Consumer goods are one example of these type of companies.

04.0—Once selected the model, then we select market leaders in the GROUP, who are BàC companies, and consistently GROWING, MAKING PROFITS, and sharing WELATH.  And select the Market Leaders only. Our 1st step is taken.

05.0—Now, we must study the business history, at least over one BULL cycle, and over one BEAR cycle. Study shall include the technical parameters including Common Size Analysis, Du-Point analysis, and Balance Sheets. If we find that the company is growing, and doing well in both the phases—we short list those companies or further scrutiny.

06.00—Now we check the company for its management process, function, and succession plan. Whether it is a PROMOTER run business, or professionals run this. We also see the list of EXTERNAL DIRECTORS. If the company proves to be TRANSPARENT, and professionally managed, well managed Trust Hold Capital, or most of the Capital are market hold, and exhibited good succession plan over the years—the companies is further shortlisted. CAUTION: -- If promoters hold large number of shares, and particularly large part of those are pledged –PROBLEM.

7.0 Company shall be largely free from DEBT, and regularly share BONUS, or Dividends. Pay all the taxes and have good Stock Liquidity.

08.0—Company, shall preferably be monopolistic, or have limited competition, or as a minimum, shall have sustainable competitive advantage for at least future 7 years. Government regulations on the product also must be evaluated in a futuristic manner. ITC’s Tobacco business is bound to get into loss, or low return, in spite of being some sort of MONOPOLISTIC MARKET LEADER in INDIA.

09.0—An important parameter is to evaluate PEG ratio, i.e. Trailing P/E for last 12 months/ estimated future 5 year’s Growth Rate (GR). A high PEG indicates an overvalued stock. PEG <1, with good EGR is ideal.

10.0—Another important ratio is PAY BACK RATIO, MODIFIED: -- MARKET CAP/ Next 5 years’ mean estimated PAT ( Profit after Tax).

11.0 Margin of Safety is difference between Value of Stock, and Price. The more the gap, the better the stock

12.0 RISK: -- There are three risks, mainly—a) Business Risk; b) Management Risk, and c) Risk from regulatory framework. If we identify that stock may suffer from any of the preceding risk factor, we shall avoid that stock.

 Note:-- Tomorrow, I will post an equity basket, prepared by me.

References: -

1.0 Most of the annual lectures of WARREN BUFFET.

2.0 Books of Benjamin Graham.

3.0 Books of Robert Kiyosaki.

4.0 Lectures and seminars attended on Financial Literacy

5.0 Selected publications from WEALTH, DALAL STREET, & OUTLOOK MONEY.

Comments

Post a Comment

Popular posts from this blog

Image
  REVIVAL OF ARVARI RIVER What a Leader, and People can do. SARASIJ MAJUMDER   REVIVAL OF ARVARI RIVER— Arvari river is a small river, may be the smallest, in the ALWAR,   Indian state of Rajasthan. The 90 km.   long river flows through the Alwar District of Rajasthan. It got dried, and   was revived in 1990. It remained dry for 60 years. The turnaround started in 1986, when people of Bhanota- Kolyala village with   the help of Tarun Bharat Sangha, managed by Rajendra Singh, constructed a   JOHAD, (earthen check dam) at the source of the dried river; following this,   villages that lay in its catchment area, and along the dried river bed, they also built tiny earthen dams, the largest being a 244 mt. long and 7 mt. High Concrete dam, most of them were in the Aravalli hills; eventually when the number of dams reached 375, the river started to flow again in 1990, after remaining dry for over 60 years. Villagers talk about Arvari's rebi...
Read more

OPERATION SINDOOR ||| ECONOMIC LOSSES OF PAKISTAN

Image
  OPERATION SINDOOR ECONOMIC LOSSES OF PAKISTAN SARASIJ MAJUMDER It will be difficult for Pakistan to come out of the loss it suffered in this 4-day KINETIC WAR, fought only in the airspace, involving Fighter Jets, Missiles, and DRONES as attacking weapons. Pakistan claims that J-10C jets, equipped with PL-15 missiles, were used in combat, and that they downed multiple Indian Rafale and other fighter jets. GOI has not accepted any loss of Fighter Jet. No image of Rafael lost is available. GOI is not declaring the HITS it inflicted upon Pakistan. Even then, I have pieced together the information and provided a picture. A. The expenses due to direct losses of HARDWARE may be divided into the following items: - 1.0 Fighter Jets: -- May be 10 Numbers. 4-F16 as a combat loss. 2 Nos. Mirage 2000 and 4 Nos. F16, possibly due to the hit it received when parked on the Air Bases. However, this figure could be more.   Pakistan's retired Air Marshal Masood Akhtar public...
Read more

UNDERSTANDING WOMEN

Image
  UNDERSTANDING WOMEN SARASIJ MAJUMDER   In a poem titled   ‘ বিদায় অভিশাপ ’—(FAREWELL CURSE)--, Tagore wrote: ........ রমণীর   মন   সহস্র বর্ষেরই   সখা সাধনার ধন । । [ ( To understand) Mind of a woman, my dear, ||You need a devotion of thousand years. ]—- Translation is mine. In simple language—‘One Life is not good enough to understand the mind of a Woman’—that is what, Devyani—the heroine of the poem said to Koch, her beloved. And I agree after completing 46 years of married life! However, based on my experience—I wanted to write an article on the subject, sharing my understanding for Romeos of future generations. This BLOG is an attempt towards that. Before I start—I want to share an interesting dialogue I had in an evening, with one of my American friend, ( married, and was living with wife and kids,) at his Ranch at Texas. When the darkness of evening started falling upon us, he told me: “….Mate—I understand Machines, Horses, Dogs…...
Read more