Warren Buffett’s Letter 2008
When there is a pessimism into the market then we get an opportunity to buy a good business at a discounted value. But during a euphoric time period, good businesses are available at a sky-high value.
Indian companies examples
One of the wealth creator IT Company during an IT bubble
One of the wealth creator IT Company during an IT bubble
One of the two-wheelers and commercial vehicle manufacturing company was available at a discounted value during pessimism of the year 2008
Warren Buffett’s Letter 2009
What is avoided by Mr. Buffett and Mr.Munger —
Mr. Buffett on derivatives –
Warren Buffett’s Letter 2010
One of the infrastructure company
One of the electric motors, generators, transformers manufacturing company
Mr. Buffett on debt-
Example – SIMPLE IS BETTER – ISSUE -4 – Mr. EMI V/S Mr. SIP
Mr. Buffett on crowd mentality-
Mr. Buffett on Repurchase of shares –
One of the Pharma Company of India which has sold one of the business segment into the FY2011 and company becomes a Cash bargain. The company has done a buyback at that time.
The company has a total Cash balance of Rs.1770.28 crore + Upcoming cash due to the sale of the business worth of Rs.7136.00 crore = Rs.8906.28 crore. And the company was available at MCap of ~Rs.7830 crore. Entire continuing business was not given valued by the market.
One of the two-wheelers and commercial vehicle manufacturing company has done a buyback in the year 2009
The company has a total Cash balance of Rs.1260.05 crore. And the company was available at MCap of ~Rs.608 crore. Entire continuing business was not given valued by the market.
One of the metal company in the year 2016 has come up with the buyback. In the year 2016, the price of iron ore was traded lower.
Company had a cash balance of Rs.14806 crore in FY16 and PAT of Rs.2517 crore. Company was available at MCap of ~Rs.28440 crore. Entire continuing business ex-cash was available at 5.94x of PAT (MCap Rs.28440 crore – Cash Rs.14806 crore + debt Rs.1497 crore = Rs.15130.86 crore; EV Rs.15130.86 crore / PAT Rs.2517 crore = 5.94x).