Revisiting Oxford Book Club Talk Given in July 2002

In July 2002, I was invited to give a talk on value investing at the famous Oxford Bookstore in Mumbai. The talk was attended by about forty fund managers and analysts.

Today, I found that presentation on my computer and was reading it. I was fascinated to find how well some of the stocks that I had spoken about in 2002 have performed since then.

Gesco Corporation has gone from Rs 11 in June 2000 to Rs 204 now. Trent has gone from Rs 60 in August 2001 to Rs 875. Gujarat Mineral Development Corporation has gone from Rs 45 in January 2002 to Rs 436 now. Zodiac Clothing has gone from Rs 43 in October 2001 to Rs 535 now. Blue Star Infotech has gone from Rs 35 in August 2001 to Rs 150 now. SRF has gone from Rs 26 in July 2002 to Rs 314 now (excluding the value of shares of a company spun off from SRF). Hindustan Motors has gone from Rs 9 in July 2002 to Rs 46 now. And Himatsingka Seide has gone from Rs 97 in July 2002 to Rs 556 now. All of these stocks have outperformed the market handsomely.

The only disappointment has been Regency Ceramics which has not gone anywhere in the last four years.

All of the above stocks were identified using very simple hueristics derived from Graham’s philosophy of deep value investing.

4 thoughts on “Revisiting Oxford Book Club Talk Given in July 2002

  1. Anoop Sharma says:

    Hello Sir,

    Not able to download the aforesaid transcript of talk given at oxford store.


  2. This is now fixed. Thanks

  3. mg says:

    Nitpicking, perhaps, but Blue Star, HM, Himatsingka seem to have underperformed Nifty (marginally), no? Unless their dividends were higher than the average dividend for the Nifty stocks, enough to compensate for the difference.

    Excluding dividends, NIFTY is 5.5X, Nifty Junior is 7X july 2002 levels. If the same amount was invested in each of the stocks mentioned in your post, the portfolio would be 9.3X today (excluding dividends), 30% more than Nifty Junior. I wonder if these stocks are all small caps and if the comparison should be against a small cap index – ofcourse, we don’t have a small cap index to compare to!

    I’m not denigrating the fantastic portfolio – the mere fact that all those companies are still around is itself quite an achievement! But, just trying to play devil’s advocate and asking if a passive small cap index would do similar. Or, in other words, if I pick 9 random (or using some passive method) small caps from 2002 would it have given me similar total return? I’m assuming these stocks are all small cap. Nifty Junior (which is not a random selection but a passive approach) doesn’t do too badly in comparison.

  4. mg says:

    Btw, this post seems to be from Sept 2005. Are the final prices from 2005? In which case my previous post is probably irrelevant, although I would still like to use the same principles for a better, truer comparison.đŸ™‚

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