Tag Archives: Benjamin Graham

Interesting reads 23 Aug 2013 – When to sell stocks, Competitive Advantages, Carl Icahn’s investment strategy


1. Nuggets of Advice on Selling Stocks from Investing Greats – http://bit.ly/185LAiD
Excellent collection of quotes from various investing great minds like Warren Buffett, Benjamin Graham, Seth Klarman, Sir John Templeton, George Soros and various others. The one I like the most is from Seth Klarman, for his simple statement about risk.
2. Investing In An Age Of Transient Competitive Advantages: A Book Review – http://bit.ly/1d5c6AN
Columnist John M.Mason reviews the book “The End of Competitive Advantage,” by Rita Gunther McGrath, published by the Harvard Business Review Press in 2013. In this article he also talks about his investing approach – durable competitive advantages, how he measures it and market share of the company in an industry.
3. How To Invest Like Carl Icahn – http://bit.ly/19MDvGz
An interesting article on Carl Icahn’s career and his investment strategies, his big wins and his current portfolio. Even though we as normal retail investors dont have the financial strength to take his investment approach, it is a good read to understand how great investors think and execute.

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Proven Investment Quotes


Proven Investment Quotes
We investors have read a lot about and would have even experienced certain evergreen investment quotes like the following:

  • ‘Buy Low & Sell High’
  • ‘Feel greedy when others are fearful’

I wanted to do a small test in our Indian market on the above quotes.

The Indian market’s lowest levels were in March 2009, when stock prices fell to their historical lows of that time, and also most of us were very fearful. Anyone who trusted the above quotes and practiced them in their investment process, would have gained a lot, and would be sitting on hefty profits.

I have just taken a few fundamentally sound businesses across sectors as a sample.

For ease of calculation, I have not taken stocks that have gone through bonuses and splits.

Stock prices are closing prices on the respective dates.

Stock

06-Mar-09

19-Jul-13

Growth

Asian Paints

736.45

5,165.40

601.39%

Bosch

3,049.95

8,698.90

185.21%

Colgate

433.30

1,497.05

245.50%

Exide

35.05

134.40

283.45%

FAG Bearing

232.00

1,430.70

516.68%

Gillette

623.35

2423.05

288.71%

HUL

223.95

686.10

206.36%

Nestle

549.85

5,702.65

937.13%

P&G

687.15

2,994.00

335.71%

Page Ind

320.90

4,496.70

1301.28%

Shriram TF

184.50

659.85

257.64%

Sun TV

155.75

400.50

157.14%

Swaraj Eng

84.25

494.60

487.06%

Wendt

361.00

1,047.00

190.03%

For example, if anyone who bought just 5 shares of each business above, on 6th Mar 2009, would have invested 38,387.25 as of 6th Mar 2009, and would be sitting on current portfolio value of 1,79,154.50

That is a mind boggling return of 366.70% over 4 years.

So, it is true that all the Investment quotes from great investors like Benjamin Graham, Warren Buffett, Peter Lynch, Phillip Fisher are all from their lifetime investment experience and we are fortunate to get their wisdom easily by reading about them.

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