venturing.in

I don’t believe in valuations. I follow a migrationary path for the companies I invest in. We must be able to visualize the future. Take Gillette for example. Twin blades constitute mere 10% of the Indian marke. Bangladesh has 33% penetration. If India catches up with Bangladesh, Gillette will be a Rs 15,000 crore company having a net profit of Rs 2200 crores. At 40 times discounting, that’s Rs 27,000 per share. That is the migration path that a valuation cannot show In 1979, Hindustan Lever was a Rs 140 crore company. In 2013, its sales were Rs 27,000 crore. Again, only a migrationary thought process would have shown that and not valuation.

– Chandrakant Sampat

The fact that your mind cannot retain and use everything you know at once is the cause of such biases. One central aspect of a heuristic is that it is blind to reasoning.

– Nassim Nicholas Taleb

I think that the most important investment you can make is in yourself. Very, very, very few people get anything like their potential horsepower translated into the actual horsepower of their output in life. Potential exceeds realization to just an enormous factor with so many people…. Your best asset is your own self. And you can become, to an enormous degree, the person you want to be.

– Warren Buffett