The SOIC Podcast

“We simply attempt to be fearful when others are greedy and to be greedy only when others are fearful.” —Warren Buffett Businesses that are less dependent on outside factors are likely to do much better over a long course of time compared to businesses that get temporary benefits and fall to their frailties eventually. This is an analysis of one such business that is fully integrated and is becomi...

“Equity mutual funds are the perfect solution for people who want to own stocks without doing their own research.” —Peter Lynch Hi Investors! We hope you are compounding everyday. 2022 was a challenging year for stock markets, however, those who prepare while the going is good, generally have a better time while the tide is against as well. This episode brings you a way to strategise your Mutual F...

“Be a free thinker and don’t accept everything you hear as truth. Be critical and evaluate what you believe in.” –Aristotle You must have observed that the stock market keeps getting spooked every now and then. Recent report by Hindenburg Research has led to a steep fall in Adani Group shares and with it many rumours and fears are taking the broader markets down as well. As small retail investors...

“Risk comes from not knowing what you're doing.” —Warren Buffett Stock markets can be crazy sometimes—well most of the time. 😆 From the euphoria after the COVID crash till Oct '21 and ensuing sideways pain from then on has left many pondering if they should stick around or go packing. I, on the other hand, believe that such markets are a perfect opportunity to study stocks and different industrie...

“In politics, nothing happens by accident. If it happens, you can bet it was planned that way.” –Franklin D. Roosevelt   In 2021, China imported oil worth $257 billion and at the same time they imported semiconductors worth $380 billion. Semiconductors are like the little brains behind almost everything we have working in our offices, houses, road, military and any other place you can think o...

“Value Investing is all about your ability to delay instant gratification.”—Parag Parikh PPFAS Mutual Fund, a name synonymous with the Art of Value Investing, has been under the lens of many skeptics due to the underperformance of the year gone by. To get a better understanding of the investing process and philosophy of the Fund Managers at PPFAS, this episode will cover the analysis into their Hi...

“We’re right 50.75% of the time…but we’re 100% right 50.75% of the time. You can make billions that way.” —Gregory Zuckerman India is witnessing a massive inflow of funds into mutual funds. The SIPs are fast becoming a habit among the working population of the country. It was about time we analysed a Mutual Fund house at SOIC. We try to give you information that is deeper and adds a lot of value t...

“If you can’t explain to a ten-year-old why you own a stock, you shouldn’t own it.” —Peter Lynch We can often observe that most difficult subjects and concepts when broken down into parts can be easily understood. Similarly, when we are dealing with businesses that have too many moving parts and there is so much to track, it gets difficult for small investors to stay updated. Many lose track and e...

“During the Gold Rush, most would-be miners lost money, but people who sold them picks, shovels, tents and blue-jeans (Levi Strauss) made a nice profit.” —Peter Lynch In 1849, a farmer saw a glittering substance in a river nearby in California, USA. He had found a small pebble of gold. This led to a frenzy all over the USA and people from all over the country started marching towards California. T...

Peter Lynch, the legendary investor in his famous book One Up on Wall Street, gave us his list of 6 types of stocks that is applicable universally. I will add 3 more to this list which will be helpful to categorise stocks in terms of the Indian Market.

Predicting rain doesn’t count, building arks does.” –Warren Buffett Dear Tribe Members, as we have discussed many times, “ investing is an art and not science .” A thesis we may have built some weeks or months ago for a company may be undergoing changes. There could be changes for good and bad, however, it is very important to keep revisiting your thesis and confirming and verifying it through mai...

"The first rule of compounding is to never interrupt it unnecessarily." -Charlie Munger Dear Tribe Members, I often come across investors who are dedicated towards their financial goals 10-15-20 years out. However, after 2-4-6 years of SIPs demotivate them with the quantum of returns. This leads to many of them discontinuing SIPs and investing their corpus in some other assets or even encourages s...

"There is no such thing as a worry-free investment. The trick is to separate the valid worries from the idle worries, and then check the worries against the facts." – Peter Lynch The legendary investor Peter Lynch had a peculiar style of investing and one of his favourite category of stocks was Proxies. The whole idea of proxies is so fascinating that the target industry’s direct participant may b...

“Even if you’re correct in your fundamental analysis, investor perception is what creates buy orders and you are going to need big buy orders in your stock to move it up significantly.” -Mark Minervini There are several ways to Nirvana, we believe one should not confine themselves to a particular way of thinking. If you are following a particular path, you should try to keep refining your trajecto...

"If you’re great in this business you’re right six times out of ten. But the times you’re right, it overcomes your mistakes. So you have to find the big winner.” - Peter Lynch   The famous investor Peter Lynch has had no shame in admitting that he has been right 6 times out of 10 in his choice of stocks. However, when he was right he made the most out of it and his losses were limited by havi...

“The first rule of compounding is to never interrupt it unnecessarily.” - Charlie Munger   Big ambitions require extra effort & special celebrations for every milestone. SOIC turned 2 although it feels like we started yesterday, this has been an amazing journey where we covered a lot of ground all because of the love & support of our SOIC Tribe. We wish to intensify the spirit of lear...

“Always take the high road, it’s far less crowded.”  - Charlie Munger In the words of Mr. Warren Buffett, "a business is a moving picture and not a static one." We have to bet on the future probabilities in a business and it's important to stay abreast of the developments taking place. A few months ago we analysed Varun Beverages Ltd. in detail. However, this business like any other business,...

“Buy companies with strong histories of profitability and with a dominant business franchise.” —Warren Buffett Focus is the key element in all spheres of life. We can observe that businesses with focused have a greater chance of succeeding than those ones involved in different spheres. This episode will analyse a boring business from a boring industry that has been an immense wealth creator and a...

“If you don’t find a way to make money while you sleep, you will work until you die.” - Warren Buffett SOIC believes that an investor should approach the stock markets with the sole purpose of multiplying their capital. There are several ways to compound wealth in the stock markets and we believe that one should take the road they are most comfortable with, with potholes and sudden twists and turn...

“The big money is not in the buying or selling, but in the waiting.” - Charlie Munger A business is a moving picture and not a static one, it keeps evolving and taking the course required for its growth. We believe in the strategy of keep tracking businesses that seem interesting to us. As nothing is permanent, one needs to keep assessing the new information that crops up. We'll look at an NBFC fr...

“Over time the skill with which a company's manager allocate capital has an enormous impact on the enterprise value." - Warren Buffett In the journey of investing and studying various businesses, we come across different business structures. Recently we analysed SRF Ltd. where we saw how a conglomerate used the fungible cash flows to erect other businesses and now we'll analyse another such busine...

For a business to succeed over a long period, it must have some kind of competitive advantage. This becomes even more important in the case of businesses that have commodity characteristics. As commodity cycles are brutal if not timed correctly, we investors need to be very careful while assessing such businesses as potential investment candidates. This is where we can s eparate the wheat from the...

To succeed in the capital markets or in life, be it your career or relationships, thinking long term and keeping the faith and same level of attention throughout will bring phenomenal results. If you keenly observe, you'll find that people or management or businesses who have had this quality of long term attention have done better than someone who has had shorter term attention span. We look at o...

We often read businesses bottoms up and try to analyse the competitive advantage. However, sometimes we can get a much better idea about the competitive position and trade advantages of an industry by looking top down and studying the peers. We saw a similar situation emerging in the business we are going to cover. The industry seems to be a commodity sorts, still most players in this industry are...

We often come across people who are disgruntled with stock markets as they have not been able to fulfill their expectations. The reason for their displeasure isn’t the stock markets instead, the real reason is their unreal expectations from the markets. Stock Markets are not casinos to double or triple your money in a jiffy, rather they are the source for enormous compounding but over a long perio...