We are fast approaching the 7th annual Morningstar Investment Conference.
In line with tradition, the event has an impressive lineup of leading asset managers, professionals, chief executive officers, and established thought leaders to weigh in on thought-provoking topics related to the economy, markets and investments. Listen to what some of them have to say.
Last year, three of the country’s leading stock pickers shared amazing insights in individual presentations before answering queries from the audience.
Bharat Shah, ED at ASK Group
Investing is not about trying to predict market levels. Investing is not about predicting global macros, local macros or market levels. Investing is not about the kind of technical timing that often many of us have attempted. Investing is not about trying to predict some grand theme or idea.
Investing is about the preservation of capital and its appreciation. Investing is about the distribution of capital. Investing is about having a Margin of Safety.
Bharat Shah's investment philosophy
Raamdeo Agrawal, Jt MD at Motilal Oswal Financial Services
The equity market is all about alpha. First you beat the benchmark, beat the expenses (the expense ratio for active fund management is high) and then make some money. That’s the real alpha.
Alpha is focus, philosophy and patience.
Have a focused portfolio approach, rather than a diversified one. Have a very well-defined investment philosophy. Have patience – the ones with the maximum patience tend to get the maximum returns.
A focused and determined philosophy with untiring patience offers the best chance of delivery of meaningful alpha. No magic. No luck.
Raamdeo Agrawal on how to create alpha
Shankar Sharma, Vice Chairman and Jt MD of First Global
My view on investing is that 80%, maybe 85-90%, of investing success is luck. But that 90% won't work unless you've done that 10%.
It takes a lot of guts. It takes a lot of conviction. It's very scary. But above all, it requires a lot of deep thinking, a lot of data. It requires an understanding of psychology. What is the market thinking about this stock? Trying to read the mind of the market.
There are common thread when identifying multi-baggers. The stock must be at multi-year lows. The stock should be preferably loss or near loss making.
Within its own industry, the weight that this stock occupies should be at the lowest-ever level. With the first three being in place, watch for just one spark – one trigger. It could be anything.
We identified stocks to invest in. We got into the trade. But, nobody could tell you how far those stocks are going to go. That - is only a matter of luck. Even Jeff Bezos never thought his company would be worth $400-500 billion. Steve Jobs had no clue that his company would even survive and later on be worth $700 billion. I doubt if the management at IndusInd Bank thought that one fine day their market cap would be what it is now. That part is luck. So you can get into a good trade. You can make a bit of money. But to make 100x, that promoter's luck and his luck chart has to be extremely strong. Hence I stated at the start, 90% is purely luck.
How Shankar Sharma picks multibaggers / Why Shankar Sharma bets on this stock
Do join us for the 7th Morningstar Investment Conference to be held in Mumbai on October 10-11, 2017. In this quick video, you can hear participants discuss their experience at the conference.
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