Is delayed gratification the primary reason why investors end up undervaluing high quality companies?

My thoughts on Prof. Sanjay Bakshi’s talk on “What happens when you don’t buy quality” In 2013, Prof. Sanjay Bakshi gave a seminal talk[1] tilted, “What happens when you don’t buy quality”. The crux of the talk was that market participants are unable to delay gratification and thus, heavily discount cash flows occurring far into … Continue reading Is delayed gratification the primary reason why investors end up undervaluing high quality companies?

How I learned the craft of valuation and ended up assisting Prof. Aswath Damodaran

In 2007, I graduated from college without having a clue as to what I wanted to do with my life. So I just followed what others were doing and enrolled in the Chartered Accountancy (CA) program. The Indian CA program is rigorous not just because of its tough exam structure, but also because you have … Continue reading How I learned the craft of valuation and ended up assisting Prof. Aswath Damodaran

Important information you may have overlooked about your mutual fund

The idea behind a mutual fund is to provide convenience to retail investors, who do not have the time or inclination to analyse individual companies to invest in. So a mutual fund, a specialist in this field, does it for them. However, the growth of the mutual fund industry in India with 40 companies operating … Continue reading Important information you may have overlooked about your mutual fund

Why you should think beyond fixed deposits

This is a story of two friends – Katrina and Deepika. Both of them got married in the year 1980. Katrina comes from a conservative family whose members mostly "invest" their hard-earned money in a bank fixed deposit. The reason was simple – fixed deposits are “safe”. There is no fluctuation and you consistently earn interest … Continue reading Why you should think beyond fixed deposits