#041 | Too Costly?

Everyone is waiting for a crash to happen.

Whether it is the prices of petrol, Zomato’s valuation in the IPO or for that matter the Indian equities market – everything seems expensive.

Let’s first start with the rising petrol prices.

There is a big case for the fact that –

  • Taxes are not being cut
  • Global crude prices have come down
  • Fiscal Deficit has been under control

The issue with all the above is none. But it is just a product of first order thinking. Let’s try and put second-order thinking to this issue.

There is a big case in India presently to ensure transition to electric sources – whether it is vehicles or cooking in our houses.

But this transition cannot take place until and unless it makes a commercial sense.

Yes, global warming is real but when it comes to using a greener source of energy, the shift will not happen because people care for the environment but it will ONLY happen if it makes commercial sense.

This is something that we had discussed in an earlier webinar covering Tata Motors. Here are a few excerpts –

In order to promote the use of ‘A’, one can either make ‘A’ cheap through subsidies (first order thinking) or make ‘B’ expensive (second order thinking) to promote the use of ‘A’.

Let’s now look at Zomato’s valuations.

And finally, when are the markets crashing?

Webinar Updates

This week we completed the 34th Webinar of the Beta to Alpha series. As we approached this milestone, two of our companies discussed in the last few months have actually run-up more than 100%.

You can check out the comprehensive dashboard here.

For the last two weeks, we have covered two companies which can unlock massive value on account of special situation – corporate re-organization!

We tweeted about one of the companies here –

Book of the Week

This week, I wish to recommend a book I had read almost 9 years back.

The book is called – 100 Dollar Start-Up.

It is a collection of stories of folks who started businesses with as low as 100 dollars to scale it up to being self-sufficient with running these businesses.

Video of the Week

This video is three years old. Raunak Onkar talks about the music streaming business. While multiple risks have been highlighted in the business, we have covered them in our deep dives on Saregama and Tips.

Song of the Week

Let’s go back to some classics.


WHY UPGRADE TO PREMIUM?

ACCESS TO THE DASHBOARD

I had talked about in detail in an earlier post here. In case you haven’t had a look, don’t worry, read below ⬇️


A) ACCESS TO LIVE WEEKLY WEBINARS

Every week we have an interactive hour-long webinar on YouTube (Private Access Only, yes no need to install other apps, you can join in from phone, desktop, laptop, tablet, satellite – anything).

These webinars are typically around four broad categories:

  1. Company Deep Dives – A bulk of our sessions are around this. We try and dissect companies and look at competitive advantages for the companies alongside industry tailwinds. Typically the structure is as follows:
    • Industry Overview
    • Revenue Drivers for the Company
    • Catalysts / Tailwinds that make A/B exciting
    • Valuations – DCF, Forward P/E, EV/EBITDA
    • Risks
    • Optionality in Businesses
  2. Industry Analysis – An overview on a particular industry to understand the drivers / factors in play to ensure you get a complete understanding of the sector. For Instance – An Overview of the Paper / Hotel Sector etc.
  3. Concept Sessions – This would cover areas like understanding the basics when it comes to investing and valuations. For Instance – An Introduction to DCF, Understanding Real Estate Investing etc.
  4. Monthly Updates – Typically these would be around result updates of companies that we’ve covered earlier especially during the end of a particular month covering quarterly updates and going deep on their results.

Typically one can expect 40 webinars in a year.


B) ACCESS TO PREMIUM CONTENT

Every month we plan on doing one detailed post to bring some superior insights. These are exclusively available for our premium subscribers.

To get a sense of the range of topics, you can access the dashboard here.

In the pipeline – Webinar Transcripts.


C) ACCESS TO A COMMUNITY OF LIFELONG LEARNERS

The endeavour at Beta to Alpha has always been that we continue to keep learning together and keep growing as a community. Today, our cohort consists of first time investors, fund managers and even ex-CXO’s who interact every week and bring out the best in our discussions.

Let’s show you one example.

This week, we did a deep dive on Natco Pharma. The cohort helped in bringing out better insights.


WHO SHOULD CONSIDER SUBSCRIBING?

FOR LEARNERS

  • If you are someone who wishes to learn and understand the idea behind dissecting companies and also take deep dives around industries or complex financial concepts.
  • Typically access to these learnings are reserved for the handful β€˜elite’ of insiders working in the fund management industry.

FOR ACTIVE INVESTORS

  • Typically the asset management industry charges anything between 2-4% based on the degree of involvement chosen (Mutual Fund / ETF / PMS etc.)
  • If you’re someone having a portfolio of ~10 lakhs being managed actively, think of the annual subscription as the management fee of ~1.9%. At 20, it becomes ~0.9% so on and so forth.

1-ON-1 CONSULTATION

Presently, I intend to do 1-on-1 Consultation on a weekly basis. Since this will involve more effort, I intend to open this for only 15 people.

If you wish to be a part of the β€˜inner cohort’, book a consultation call here.


If you’re planning to head over to Amazon, just use this link below and continue shopping.

Almost 200+ people wrote to me saying that their life was made easy by the little mobile stand I had started using.

Well, now I have discovered a new product that has made working on my new laptop way easier.

It’s a compact (non-bulky) laptop stand and fits easily in my bag. You can check out the product here.

Trust it helps you too.

Did you love reading this post? Share the love ahead.

About the author

Saket Mehrotra

Full-time Fund Manager | Sensex Follower since '09 | Free + Premium insights at Beta to Alpha & Alpha Swing | CA, CS
Senior Associate - Equities at Tusk Investments. Ex - PMI, ITC.

View all posts

Leave a Reply

Your email address will not be published. Required fields are marked *