Talk @ Google: The Prejudices of Mr. Market

Posted on by fundooprofessor

I had the privilege of addressing Googlers at their wonderful campus recently.

You can see the video from here.

Transcript from here.

Published by fundooprofessor

I am Distinguished Adjunct Professor at Flame University, Pune. Previosuly, I was Adjunct Professor at MDI, Gurgaon, where I taught MBA students two popular courses titled “Behavioral Finance & Business Valuation"(BFBV) and Forensic Accounting and Corporate Governance (FACG) for many years. I am also Managing Partner at ValueQuest Capital LLP— an investment advisory boutique which helps its clients invest their capital in good quality businesses.

10 thoughts on “Talk @ Google: The Prejudices of Mr. Market”

  1. Technology has made it easier for students like me to learn from you, but nothing can come close to the experience of being taught by an inspirational teacher like you. Thank you.

  2. Thank you Prof for a wonderful talk and sharing it with us.
    I have a couple of question with regard to Intelligent fanatics and riding on their coat tails.

    1) Warren Buffet at some point has said – Invest in a business that can be run by a fool because at some point it will be – (not exactly this but something to that effect). Does this not vary with the intelligent fanatic ideology?

    2) By banking on an individual the intelligent fanatic – rather than a business model or a business process are we not elevating the risks involved?

    Thanks
    Akshay

  3. Sir, I’ve a feedback as well as a question. Please bear with me

    I’ve been following your blog since 2011. Read all those wonderful lectures, ideas. My feeling is though we understand them, the scale of intensity is too low for us to really appreciate them and practice them. Each of these lessons are after years of your practice. People may not weigh them as much as they should to really benefit from them. One such personal experience of mine is after your post of relaxo. By the time the post came out, the stock went up significantly. I could’ve just piggy back on your analysis. Yet I didn’t. I felt the stock price already went up, but couldn’t see the effect of increase in profits along with multiple (lollapalooza effect no’s wise). Numerically multibaggers gain by expansion of multiples (increase in profitablity) and profit growth (scale and rate of growth). I am now trying to use numbers as initial screens for further qualitative study of those passed in number test but feel inadequate. Increasingly value and other investors are becoming better at identification of opportunities based on numbers analysis. Identifying the qualitative factors has become more important to identify the opportunity early and enter at a favourable price.

    Please suggest workable methods which will help us segregate gems from stones and then further scrutinize each of them. The traditional numerical methods (cash bargains, cumulative growth screeners and others) seems not working anymore.

  4. Thank you sir. I had almost all of 5 prejudices. I think intelligent fanatics are hard to find. That is the most hard prejudice to overcome. Thanks for teaching …

  5. Good morning sir. Wonderful presentation. Stated reviewing each of my thoughts on different aspects to search for any prejudices. Thank you.

  7. Nearly five years ago, you had blogged about the grand strategy of Ajay Piramal. Perhaps it is time to revisit Piramal Enterprises.

    There is is talk of the company demerging its finance business and merging it with IL&FS. Could you take a look at Piramal Enterprises and IL&FS in such a scenario?

    disclosure: holding piramal enterprises since your post and adding regularly from salary.

  8. Dear prof at the end of the talk there was a question on pe multiple and I your reply the answer was the E for moated businesses is much higher than the reported E and there are methods to evaluate it . Could you throw some light on the methods to evaluate it .

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