Investment Strategies

1. Invest in your areas of expertise(why?) - Warren B., Charlie M. , Prabhai
   - You can still become rich no matter how narrow your areas of expertise are.

2. Invest in business whom a idiot can run it.
   - These businesses have very deep moat like coca-cola or crisil. Even if management or leadership quality of a company becomes poor but it still doesn't effect growth and sales of the company.

3. Minimizing the risk(how?)
   - Most of the times target remain uncertain but we can make risk certain.

4. Choosing companies of which products are you using in daily life(why?)
   - Easy to keep track of what is happening to the company.

5. Patience
   - Even if there is nothing wrong with the company and its future aspects but we are sitting on handsome profit, then it become very difficult to just wait or hold that position.

We will learn,

• What is value investing?

• Practical aspects of value investing:
  For today's information age where everyone have access to companies information it is hard to find mismatch in price and value based on traditional value investing. Even Benjamin said that we need to evolve our value investing method with time.
  
  - One way could be looking at the companies or areas where lesser people are interested in. Because only here could market become inefficient and value & price of stock will not match. But is this always works? NO(why?)
  
  - Looking for other value parameters(making new feature by quantitative/ML analysis- feature engineering) which could give us better result about valuation of a company. One of the good way for initial shortlisting of companies for value investing is (Enterprise Value/EBITDA) ratio or Enterprise Multiple.
  Enterprise Value= Market Cap + Debt - Cash [But why are we doing it?- it represents capital in use. Note that equity and debt both are used to raise capital to run a company but cash is just sitting still.]
  EV/EBITDA ratio represents by how confident people are about company. And this valuating multiple is used to compare different companies or company vs sector.
  
  - We will be updating this further soon- where we will learn to find or estimate new value parameter and can do investing based on that.