Value Investing, Videos

Sanjay Bakshi On Value Investing At IIM Ranchi

Sanjay Bakshi, who is considered as an authority on value investing in India and also a managing partner at ValueQuest Capital LLP , visited IIM Ranchi to share his learnings and experiences in the world of investing with the students.

Sanjay Bakshi On Value Investing At IIM Ranchi

Sanjay Bakshi On Value Investing At IIM Ranchi

  • Serenity Stocks

    Value Investing as taught by its founder – Benjamin Graham – was an elaborate framework that included checks for Quality and Growth.

    Benjamin Graham – once known as The Dean of Wall Street – was a scholar and financial analyst who mentored legendary investors such as Warren Buffett, William J. Ruane, Irving Kahn and Walter J. Schloss.

    Warren Buffett once wrote a detailed article explaining how Graham’s record of creating exceptional investors (such as Buffett himself) is unquestionable, and how Graham’s principles are everlasting. The article is called “The Superinvestors of Graham-and-Doddsville”.

    Buffett describes Graham’s book – The Intelligent Investor – as “by far the best book about investing ever written” (in its preface).

    Graham’s first recommended strategy – for casual investors – was to invest in Index stocks.
    For more serious investors, Graham recommended three different categories of stocks – Defensive, Enterprising and NCAV – and 17 qualitative and quantitative rules for identifying them.
    For advanced investors, Graham described various “special situations”.

    The first requires almost no analysis, and is easily accomplished today with a good S&P500 Index fund.
    The last requires more than the average level of experience, intuition and talent. Such stocks are not amenable to impartial algorithmic analysis, and require a case-specific approach.

    But Defensive, Enterprising and NCAV stocks can be reliably detected by today’s data-mining software, and offer a great avenue for accurate automated analysis and profitable investment.