Some comment about Chandrakant Sampat:
I have read about Chandrakant Sampat in some detail. AT the age of 70 this man runs about a mile on Marine drive every morning; he refused to take buy orders from his clients at the height of the tech bubble because he thought that technology stocks were over priced; he made his biggest money in Gillette along with Radha Kishan Damani; talks real sense and one should read his gist of the Economist every year on Capitalideasonline whose founder Chetan pareikh is another Sampat fan.
I have read about Chandrakant Sampat in some detail. AT the age of 70 this man runs about a mile on Marine drive every morning; he refused to take buy orders from his clients at the height of the tech bubble because he thought that technology stocks were over priced; he made his biggest money in Gillette along with Radha Kishan Damani; talks real sense and one should read his gist of the Economist every year on Capitalideasonline whose founder Chetan pareikh is another Sampat fan.
But here comes the important but markets do not care Sampat, Jhunjhunwala or Arora in the short term.
The other day we had ENAM another market vetren commenting on brokerage valuations so while MOST can double up from here what we need to see is the risk of potential capital erosion that we carry with these stocks.
Can anyone compare market caps of Indian broekrages with their global counterparts witha note on the trading volumes on both the countries?
---------------------------------------------------------------------------------------------
Chandrakant Sampath was extremely buliish on Gillete and P & G and cannot and does not accept market's verdict on high brokerage valuations and attibutes this to a bubble from inflows from US.I know this is obvious but am just considering if one can argue with market or is there merit in Mr. Sampath's view.
-----------------------------------------------------------------------------------------------
These are all Black Swans- we merely perceive them as white.
by Chandrakant Sampat
---------------------------------------------------------------------------------------------
"Black Swan" - we never think we'll encounter a black swan since we are trained to think that all swans are white. Expect the unexpected is the motto. I think he is a big bull on FMCG stocks (Gillette, Proctor etc) and MNC Pharma. Firm believer that free cash flows are the ONLY thing that matters.
---------------------------------------------------------------------------------------------
Chandrakanth Sampath is a value investor with Warren Buffet as role model(but Buffet did buy Petro China),I think ,whereas currently in India we have a market favouring big growth stocks and reratings due to comparative valuations(with US companies) which trend does carry with it the seeds of a bubble as Mr. Sampath hints at.
Chandrakant Sampath was extremely buliish on Gillete and P & G and cannot and does not accept market's verdict on high brokerage valuations and attibutes this to a bubble from inflows from US.I know this is obvious but am just considering if one can argue with market or is there merit in Mr. Sampath's view.
-----------------------------------------------------------------------------------------------
These are all Black Swans- we merely perceive them as white.
by Chandrakant Sampat
---------------------------------------------------------------------------------------------
"Black Swan" - we never think we'll encounter a black swan since we are trained to think that all swans are white. Expect the unexpected is the motto. I think he is a big bull on FMCG stocks (Gillette, Proctor etc) and MNC Pharma. Firm believer that free cash flows are the ONLY thing that matters.
---------------------------------------------------------------------------------------------
Chandrakanth Sampath is a value investor with Warren Buffet as role model(but Buffet did buy Petro China),I think ,whereas currently in India we have a market favouring big growth stocks and reratings due to comparative valuations(with US companies) which trend does carry with it the seeds of a bubble as Mr. Sampath hints at.
I would definitely go with Mr. Basant's view for a comparative study of brokerage stocks but I would never buy either Gillete or P & G because I feel Mr. Sampath has chosen the wrong stocks for compaison because these stocks would have quoted much higher but for the market's perception(which is a big risk and the market prices have been stagnating for a long while)) about the possible unfriendliness(towards minority shareholders) of their parent companies.
---------------------------------------------------------------------------------------------
Mr. Sampat is man with the hammer. He made money with FERA share wich went up many folds but I think he never came out of that shell. Can you find any of his reco that if not FERA FMCG? Even HDFC?
Mr. Sampat is man with the hammer. He made money with FERA share wich went up many folds but I think he never came out of that shell. Can you find any of his reco that if not FERA FMCG? Even HDFC?
At bottom of mkt in 2003 he said he would be happy to make 14% return on his money before tax. His logic was, technology changes things so fast that almost all businesses(but FMCG) will be killed before they can recover cost of capex!!
His only selection criteria is FREE cash flow. Deploying money for growth opp doesn't count. It has to be FREE cash flow. Mr. Sampat's analysis at cadbury also looked stranged to me. It is his core competence. He compared per capita chocolate consumtion in US and India and tried to show potential. Now Americans don't eat Jalebis, Rasgullas and Rabdi. This is not apple to apple comparison. Plus when mkt expands, there bound to be more players. I really wondered that after seeing so many boom/busts how can you miss biggest so obvious bull mkt?
I went to Mr. Chetan Parikh's website few years back. What I make out of that is the guy reads a lot. Real bookwarm. He is also highly educated. But somehow is he also highly biased. He tries to copy WB but in weired way. I went through is annual newsletters. He doen't name the companies but "describes" them. You can easily make out what company he is talking abt. Why not name them? Just put desclaimer. He was I think 25% in equity in whole 2004-5. Their Stock selection was also very strage.
No comments:
Post a Comment