Sanjeev Sharma

Wealth Manager Ex-Founder Sqrrl Fintech

[Our Indian Cinema @OurIndianCinema]

We were not aware of your plans 😭😭
Sorry Shaktimaan, mean Namit Bhau 🙏

#Ramayana

[Maj Gen (Dr) YashMor @YashMor5]

Wonderful initiative by India Today to have sent a young team early morning to cycle with me.
While lot of visible efforts have been made at few spots, over all the situation remains really bad.
Needs tremendous efforts by every one including the citizens.
@DC_Gurugram @MunCorpGurugram @PradeepIAS_HR
@IndiaToday

[Man Aman Singh Chhina @manaman_chhina]

Indian TV news channels have truly earned their medal of shame for fake reporting in the ongoing Indo-Pak conflict.
Fully deserve Theatre Honour ‘Fake News’, Battle Honour ‘Disgraceful Reporting’ and individual Uttam Jhooth Seva Medal (UJSM).

[Sanjeev Sharma @sanzu6]

😊

[Sandeep Singh @Alchemist1320]

Mummy is not dummy 😁

[Sanjeev Sharma @sanzu6]

@KaranJohar4 We have come a long way from " Capital Gains don't accrue from any effort " to " Capital Gain is the fastest growing income class"

[Sanjeev Sharma @sanzu6]

Jensen Huang, Founder and CEO of NVIDIA https://t.co/NKlrB04SHf via @YouTube
Absolutely fantastic interview

[Sanjeev Sharma @sanzu6]

@aditya_kondawar India GDP per capita < $2.5k China > $12k USA > $80k 🤔

[Startup Archive @StartupArchive_]

Keith Rabois on the “one person, one problem" framework he learned from Peter Thiel

"Peter Thiel used to insist at PayPal that every single person could only do exactly one thing. And we all rebelled. You feel like it's insulting to be asked to do just one thing.

But Peter would enforce this pretty strictly. He'd basically say: 'I will not talk to you about anything else except for this one thing that I've assigned to you. I don't want to hear about how great you're doing in this other area. Just focus until you conquer this one problem.'...

The insight behind this is that most people will solve problems that they understand how to solve. Roughly speaking, they will solve B+ problems instead of A+ problems.

A+ problems are high-impact problems for your company but they're difficult--you don't wake up in the morning with a solution to them, so you tend to procrastinate...

If you have a company that's always solving B+ problems, you'll never create the breakthrough idea because no one is spending 100% of their time banging their head against the wall every day until they solve it"

Source: @ycombinator

[Sanjeev Sharma @sanzu6]

@KaranJohar4 Fab

[Daniel Mahncke @MnkeDaniel]

Sir John Templeton annualized a 14% return over 38 years.

Yet I haven't seen an interview of him before this one.

It's from 1997 and full of life and investing lessons:

[Sanjeev Sharma @sanzu6]

@KaranJohar4 @falamb3 True that. Specially the punjabi tadka by @wasimakramlive @realshoaibmalik .

[Sanjeev Sharma @sanzu6]

@simpleharish @AmitMTrivedi @krishan_sharmaa @pickbrain Best wishes to the stellar team.

[Sanjeev Sharma @sanzu6]

@KaranJohar4 arguments get lost in the cacophony and puts off the audience.

[Sanjeev Sharma @sanzu6]

@KaranJohar4 I am not surprised at all. You always thrive in the most challenging environment. 👍🏻👍🏻

[Dividend Hero @HeroDividend]

Wise words from the CEO of Blackrock

He says: “If we can get young people to invest for the long term, the issue of retirement may be less of a problem for the next generation”

[Brandon Beylo @marketplunger1]

Bruce Greenwald invited Li Lu to speak to his class on value investing.

The result is a 90 minute masterclass on how to be a value investor.

If you haven't watched the video, do it now.

If you have, it's worth re-watching.

Here is a list of my favorite quotes from Li Lu 👇

PERSONALITY OF A VALUE INVESTOR

• "Understand who you are as an investor, because you will be tested. You will have to ask yourself if you truly are a value investor."

• "Value investing goes against our evolution of following the crowds to survive."

• "You will spend most of your time as an investigative journalist. To have insatiable curiosity."

• "You almost have to be curious about everything. Because you never know where you'll get that one major insight."

INVESTOR CRITERIA

• Is it cheap?

• Is it a good business?

• Why is this opportunity available to me?

"Once you answer those questions, you really have to go for it."

INVESTMENT CASE STUDY 1: TIMBERLAND

• "The first thing I check in a company is it's valuation."

• "If you're an investor you don't care where it traded before."

• "What matters isn't the price-to-book ratio itself, but what's in the book value."

• "You want to compare the capital invested in the business to how much pre-tax cash flow the business generates using that capital."

• "So Timberland generated $100M on $200M in capital invested. So why does the opportunity exist?"

- Nike, Reebok, all the shoe brands fell off a cliff during the Asian Financial Crisis.

- Founder owns 40% of the stock

- Company was profitable and didn't need financial markets (no sell-side)

- Tons of shareholder lawsuits

• "What would be your conclusion if you were a normal mutual fund hearing this information? That management is milking the company for their own gain."

What does Li Lu do next?

• "I download every file of the shareholder court cases. That's the investigative journalist part."

• "The result was that the founder withdrew guidance and shareholders didn't like it. That was it."

How do you determine if management are decent people?

• "You've got to be an investigative journalist and find the trail of evidence. Go to their community. Introduce yourself to their friends/family/neighbors."

Total Time Commitment: "A couple of weeks of diligent/obsessive work"

• "Investing is intensive work for short bursts of time."

HOW MUCH TO BUY?

• "If you go join a fund, they'll tell you not to risk anything more than 25-50bps."

• "Think about how much effort you put in to this work. You have no downside and its trading at 5x profits."

• "So, I put a shitload of money into Timberland. Over the next 10 years it went up 7x. It was never more than 15x earnings."

• "If you're not a good analyst, you'll NEVER be a good investor."

• "When it goes up, you don't have to do a damn thing. You just sit on it and ride with it."

INVESTMENT CASE STUDY 2: KOREAN COMPANY

• "Don't think about per-share numbers. Think of yourself as an owner."

• "$236M in book value, $60M market cap, $25M net earnings."

How do you know it's cheap?

• "You must confirm that the earnings are there, and that the book value is real, liquid, and tangible."

• "They're trading at the cash value in the bank with no debt. They have hotels and department stores that they own outright. They're making $30M+ in pre-tax earnings. And insiders own 50%."

The result: Went up 5-6x

VALUE INVESTING IS NOT NATURAL

• "There's a lot of money in value investing. But it's still unnatural to most people."

• "One thing you have to do, is you have to do the work. You have to do the reps. You can make a ton of money if you really do this stuff."

• "I benefited by listening AND THEN DOING my own work. Making my own investments and mistakes."

WHAT MAKES A GREAT ANALYST

• "You must provide accurate and complete information. If you can't succeed on that, you can't succeed in this business."

• "If you're not confident about your prediction and what you know, you can't put any money when the stock's in free fall."

WHAT PROVIDES THE BIGGEST RETURNS

• "Your biggest returns will come from no more than ten tremendous insights. That's it."

• "The only way to build those insights is intense curiosity, intense study."

INVESTING MISTAKES

• "The biggest mistakes come when you buy before you've done all the work."

• "My biggest mistakes aren't buying and losing money. It's not buying and missing out on 50-60x returns."

HOW MANY COMPANIES SHOULD YOU BUY

• "I don't have any set rules on how many stocks or companies I buy. Opportunities are sporadic and it depends on the environment."

• "I usually have 3-4 big ideas. If the market is exciting, I have more opportunities. Or if the market is boring, I have fewer."

HOW LI LU ALLOCATES TIME

• "Most of the time I spend reading and studying about everything. Learning new companies and industries."

• "If I find an idea that captivates me. I stop everything and obsess over that idea."

• "Besides that, I spend a lot of time with my kid and my wife."

TL;DR:

• Be an investigative journalist.

• Work obsessively in short bursts and spend the rest. of your time learning.

• When you've done the work and have conviction, buy a shitload to make it worth it.

• Before you invest $1, make sure you can answer the three big questions: Is it cheap, is the management team good, and why does the opportunity exist.

• Never stop learning.

• Become a curiosity machine.

[Sanjeev Sharma @sanzu6]

@KaranJohar4 Mahua Moitra

[Sanjeev Sharma @sanzu6]

@KaranJohar4 40

[Sanjeev Sharma @sanzu6]

@adicrazy @PenguinIndia I am getting out easily 😊