Tag: lifestyle
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Indian Textile Sector Outlook
1. India at the forefront to gain from adoption of the ‘China + 1’ strategy. In a bid to de-risk their supply chain/concentration from China, global manufacturers have started shifting manufacturing operations from China (initiative known as ‘China +1’) to alternate sourcing destinations. India stands out as a suitable ‘+…
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How to Analyze Banking Stocks – A Complete Guide – Part 1
Can you imagine a country without a banking system? Banks are the pillar of every economy. If they collapse, the entire country eventually collapses. Individuals and companies turn to banks for their funding needs. A nation’s ability to assemble its capital effectively depends on them. This is why banks flourish…
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Contrast-Caused Distortions of Sensation, Perception and Cognition
This article is part of a multi-part series on human misjudgement by Charlie Munger. The sensation apparatus of man is over-influenced by contrast – it has no absolute scale but it has a contrast scale. And it’s a scale with quantum effects too – it takes a certain percentage chance before it’s noticed.…
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Reciprocity Bias
This article is part of a multi-part series on human misjudgement by Charlie Munger. What Is Reciprocation Tendency? Has a car salesman ever offered you a cup of coffee or a glass of water upon entering the dealership? Have you been handed a free sample of a product as a gift? These…
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Consistency and Commitment Tendency Bias
This article is part of a multi-part series on human misjudgment by Charlie Munger. Consistency and commitment tendency is “a super-power in error-causing psychology tendencies”, “including the tendency to avoid or promptly resolve cognitive dissonance. Includes the self-confirmation tendency of all conclusions, particularly expressed conclusions, and with a special persistence for conclusions that are hard-won.”…
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Types of Moats in Business
“We have found in a long life that one competitor is frequently enough to ruin a business.” Charlie Munger Companies with moats are more likely to reliably increase their intrinsic value over time, so if you wind up buying their shares at a valuation that (in hindsight) is somewhat high,…
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What to look for while reading the annual report?
Originally posted on Seeking Wisdom: I have been developing a new habit for the last ten days. What’s that habit? I have been listening to Berkshire’s Annual General Meeting (AGM) starting from 1994. How long will I take to complete it all? There are 25 AGMs, and each one would be…
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Fragility and Optionality in business Models
“Fragility and optionality in business models” by Prof. Sanjay Bakshi. Key takeaways are as follows. Fragility as defined in Cambridge dictionary means the quality of getting easily damaged. In business context fragility would mean the business being vulnerable to the fragility. There are various factors which can make business vulnerable…
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