A must read interview by prof bakshi

A

I admire prof. Bakshi, have read all his articles and read his blog regularly. He is a great teacher and it would have been great if I had been his student. I found this interview on capital ideas online. Unfortunately only part of the interview is available and the rest is available only to subscribers.

I would recommend reading the interview. On reading the section under cash bargains, I was almost nodding my head in agreement. I have posted a few cash bargains like novartis, cheviot company and merck earlier. I plan to re-read security analysis by benjamin graham and further expand the scope of my search for investment ideas.

In addition, my own thinking has started expanding to include graham type situations more. The reason is that buffett type companies are diffcult to find and require a lot of indepth understanding of the business to make a meaningful investment. Looking back at my stock screens, I realise that I left a lot of bargains on the table because they were mediocore businesses. These businesses were selling below intrinsic value and although the intrinsic value did not expand, a convergence of the current price with intrinsic value yielded good results.

A move to expand into graham type stocks has increased the number of my investment ideas. However this type of investing means a higher portfolio turnover and a constant search for cheap stocks as one may not be able to buy a great company at a decent price and enjoy the benefits of an increase in the instrinsic value.

This does not mean that I am not looking for the buffett type good companies. It is just that I am trying to let go of my mental blocks to other types of companies and other types of investing. Who knows I may overcome my aversion to trading too šŸ™‚

A request ā€“ If any one reading this post has access to the full interview, I would request you to email me the link or the interview itself (id : rohitc99@indiatimes.com)

update : 4th june : i have recieved the complete interview by email. thanks to sajeesh mathew for that. It is a great interview and i learnt a lot from it. I will have to confirm with sajeesh and prof bakshi if it fine to email the interview to others. I would definitely not be posting it

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