It was really nice talking with everyone today. Here is a short list of things that were discussed. Please add things that I might have missed.
Net working capital bargains (famously known as net nets)
- Market cap < 0.66*(Net working capital)
- Buy a basket and sell if price returns > 50% or holding period is 2 years (whichever happens first)
- Screen for these at times of market stress; Helps improve IRR returns
Global stocks discussed: Fairfax India Holdings (alternative to nifty; trading at steep discount to its NAV)
Stocks discussed: Vaibhav global (more as a core portfolio stock)
Potential value bets: Eclerx, Expleo Geo, NIIT
Funds discussed: Fundsmith (Coffee can for the globe, link)
Long term value migration:
- Industries of the Future (innovation coming from Eastern European countries such as Estonia, Lithuania, Latvia). Example is Transferwise which was founded by Estonians. Link to book
- Is IT migration happening from India to Spain and Eastern Europe? How do we verify this?
Useful resources:
https://www.valueinvestorsclub.com/