Arohan's investing life | Common-sense approach to value investing

About

I am an entrepreneur and investor. I have been investing for a long time and generally like to buy assets for cheap. I am now applying the same philosophy in my business ventures. This blog discusses my views on public and private markets

Value investing was made popular by Benjamin Graham. Warren Buffet and Marty Whitman are some of the best known exponents of value investing. The best value investors are also contrarians at heart. After all, the basic aim of both the strategies is the same. Buy assets when they are cheap and sell assets when they are dear

Value investing is a very easy to understand concept but very difficult to practice. Going against the conventional wisdom is always difficult, but the tricky part is to know when cheap does not necessarily mean value. Conversely, an asset can be undervalued even when the traditional valuation ratios show the asset to be fairly or richly valued. There is always that something that needs to be considered to determine the value of the stock. I would say this is an art rather than science and there is only one way to know when you found it. If in course of the due diligence, you like the company so much that you would be willing (if financing were not an issue) to own the entire business outright, then this is probably a right stock to invest in

This blog is my articulation of what I have learnt so far and also a journey to perfect my craft. Glad to have you with me


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