Basant Maheshwari

http://www.ndtv.com/video/player/news/basant-maheshwari-on-the-art-of-value-investing/345376

Two buckets - Secular trends and Sentiment driven companies

• Secular trends - This time around affordable housing finance + housing as a theme
• Tons of companies including Gruh, Repco, Symphony, Kajaria, Cera etc
• Sentiment driven - Invested in Pantaloon Retail in the past
• Did not like the business model (agree) - High dilution + retail costs - Got lucky in a way

Two things to learn

• Hold secular companies for 20 years - Dont sell at 2 x or 3 x
• Concentration of holdings - at most 10 companies in the portfolio
• Hedge against crooks - RoEs in excess of 30% and consistent dividends (Vaibhav Global passes this filter)

Price points

• Page 350 - 15 to 20 x P/E - paid up a bit for a consumer oriented company
• Hawkins @ 350 - 10% Div. yield when he bought it
• Gruh Finance - INR 70 Must have bought at 16-20 P/E and 4 to 6 P/B; Again paid up a bit not too much but a bit
• Voltas - Cut his position short at 60% loss (cut the losers and let the winners run)