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Ramdeo Aggarwal

Indian Stock Market Fund Manager Ramdeo Agarwal leading the Fund House, Motilal Oswal, A follower of Warren Buffett

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Ankur Kumar Kapoor
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75 views

Ramdeo Aggarwal

Indian Stock Market Fund Manager Ramdeo Agarwal leading the Fund House, Motilal Oswal, A follower of Warren Buffett

Uploaded by

Ankur Kumar Kapoor
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as TXT, PDF, TXT or read online on Scribd
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Accounting Policies & Process:

1. Cash Accounting
2. Accrual Accounting

Accural Accounting:
New Entreprenurs and some managers try to increase there valuation by doing
fraudulent practices of accrual accounting and that pulls market in the trap to
give them that reward of there actions. But It is a border between agression &
fraudulent accounting. So the keep on making fraudulent statements and returning to
zero one day. So, when you hold share someone going to show you that there is
something wrong here so the moment you see that run and leave the company share.
Global Multi Billion dollar enterprises have become from hero to zero in less than
12 months.

Ankur Notes:
Remind me of LEEL ELECTRICALS LTD where the promoters sold there
business and the money was not distributed in the form of dividend and it was
channeled privately to promoters.

WHEN IS THE BEST TIME TO GET AWAY FROM BUSINESS:


when a business is sound and temporarily it is facing some issue you can take a
calibrated call, like management intergrity is not in doubt and they might have a
credit cost issue for 6 quarter you have to take a temporarily moment loss and the
stock has come down from 1000 to 500, after some time when management will figure
out plan to work on and things are better again the stock will again go from Rs.500
to Rs.2000 so in an honest and ethical managed company it is not a proble. Taking
my own personal experience, Motila Lal Oswal too had a problem, we started Aspire
and in that we have a problem. we declare from 1% to 6% Gross Marginal Profit.
Market was not happy but that is how it is. But this is business not a gambling
thing or casual thing associated with the business. So when the management is
honest and upfront, and declaring honestly whatever is the figure now it is your
call, you want to back Motilal Oswal or not? So, investing is all about long term,
if you believe in management and management are the real holders of company profit
because they sit through 10 - 20 - 30 years facing all good and honest time
together regarding that business and they become lucky at times because of the
market over long period of times or because of some business oppurtunities.

CYCLES - TURNS OF CYCLES - MARKET PRICE CRORRECT - GREED ARISES


1st thing we have to be clear about is what you are buying, do you understand what
you own, who are your stewards working for you, what are their reputation whom you
have delgated to run your business? So, first thing is to know what you own i.e.
what Bufett Says. Even if the signals are wrong temporarily and you understand the
business and management you have conviction in you and you dont turn with
temporarily cycles.
CYCLICAL COMPANIES:
Say the comodity price goes from $1/kg to $5/kg and earnings are through the roof
which also makes the stock price also go up to say from $100 to $1000. Now at $1000
you go and meet the management, typically the management will say Sir, earlier it
used to happen the commodity will come down, but this time the China demand is so
massive, we have scratched the surface and there is no supplier and we are the only
supplier and this $10 should be $20 and what happens is again come dow to $1,
THIS REMIND ME OF HEG COMPANY
and i have seen enough of this thing happening and i too got cought in
STERLITE TECHNOLOGIES LTD
In 2003 when fibre optics came for the first tim and i was very hopeful that the
world is becoming digital, everyone wants fibre and all (latest new technological
advancement) and it played out like that from $8 to $1, and second time it also
raised up the stock price but than i was very cautious and i did not participated
and backed out. I bought it for Rs.500 i saw price went up to Rs.900 and again sold
it for Rs.100, There is nothin wrong with the business or management it is just
CYCLICAL of it, So these types of loses will happen, right on top all sought of
people will come, management will come, analyst will come, Suddenly the management
who is not willing to meet will come to your own office and they are willing to
explain you all technologies.

A GOOD BUSINESS WITH AN AVERAGE PROMOTER


I cannot compromise on the Promoters. In promoters there are two things Integrity &
Competence, I can say i can have an average promoter in terms of competence but on
Integrity i want AAA.

From 2015 what happened is earlier you used to buy cheap and if you end up buying
cheap you are guaranteed to make money that is not the scene now in year 2020.
Value is out of fashion now, Bufett Sir is also having tough time, with all his
framework and apple in his portfolio is under performing and in the year 2014 what
got into my head, i always choose QUALITY & GROWTH i thought it is going to be our
style of Investing but now it has become Global Style & Market style of Investing.
I realised if Q & G along with P, if you have is good for good time and for bad
time. Good time anything is good but in bad time only Q-G-P work and that is what
happening now and i am going more closer to Q-G-P. Manager thought 25% growth
aayega but aaya nahi lekin ab 5 ka p/E hai isme kya ja sakta hai ? So you dont
change the story, the story with which you bought, please pursue that if you are
wrong than run. When new entrepreneurs, students start they start looking for cheap
but Quality came from Buffett.

WEALTH DISTRUCTURS INDICATORS


1. PE - 70 / 80
We did study of last 20 years and we saw that if you buy above 80 PE typically in
most cases outright losses or you will only make 5% - 10% return if you were lucky.

Taxation - SEBI
PMS
Mutual Funds
Raamdeo Agrawal On Wealth Destruction Over Last 3 Years: PMS AIF World Summit
Source: https://www.youtube.com/watch?v=mg5RCb9-gp8

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