tag:blogger.com,1999:blog-7294165939647321702.post6477568680246934243..comments2024-03-28T13:45:43.362-04:00Comments on <center><a href="http://www.barelkarsan.com">Barel Karsan - Value Investing</a></center>: Reminiscences of a Stock Operator: Chapters 9 & 10Saj Karsanhttp://www.blogger.com/profile/04493152766022812984noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-7294165939647321702.post-91888883032777791922010-08-09T19:00:47.739-04:002010-08-09T19:00:47.739-04:00rayhaan - read the book for the lessons rather tha...rayhaan - read the book for the lessons rather than technical analysis, the principles by which you conduct business will follow his no matter what you're doing. He teaches the reader about investing with conviction and there is no substitute for that in any trade.Ankit Guptahttp://www.selectedfinancials.comnoreply@blogger.comtag:blogger.com,1999:blog-7294165939647321702.post-7934273761202959132010-08-09T15:22:32.619-04:002010-08-09T15:22:32.619-04:00Hi Rayhaan,
Thanks for giving away the ending!! j...Hi Rayhaan,<br /><br />Thanks for giving away the ending!! j/k<br /><br />I guess consider it a lesson on what NOT to do.<br /><br />Regarding your questions, it's very difficult to say what is "above average" when you're talking about free cash flow, because it will vary by industry. For example, in one industry, margins could be low but the industry might be able to adapt to changing conditions quickly, while in another, margins could be high but fixed costs are high such that risk is higher.<br /><br />To your other questions, free cash flow is useful because it takes in account the costs of assets that need to be replaced to keep the business going (as opposed to EBITDA). The problem is that it's often difficult to know those costs without a very good understanding of the company.<br /><br />Q3: That the securities will come down in value, and that the managers are not interested in rewarding shareholders. One company which is exactly as you describe is <a href="http://www.barelkarsan.com/2010/07/envoy-capital-group.html" rel="nofollow">ECG</a>, which is discussed <a href="http://www.barelkarsan.com/2010/07/envoy-capital-group.html" rel="nofollow">here</a>.Saj Karsanhttps://www.blogger.com/profile/04493152766022812984noreply@blogger.comtag:blogger.com,1999:blog-7294165939647321702.post-38968002147394890022010-08-08T12:35:50.611-04:002010-08-08T12:35:50.611-04:00anyways i had a few questions-
q1.whats the signif...anyways i had a few questions-<br />q1.whats the significance of free cashflow to sales ratio ? what percentage may be considered above average?<br />q2.what is the importance of free cashflow?what can be considered bargain levels?<br />q3.what are the risks that come to ur mind while investing in a investing company with minimal debt which is trading at a massive discount to the value of securities it owns?<br />Hopefully i ll be forgiven for my little outburst above,<br />rayhaanrayhaannoreply@blogger.comtag:blogger.com,1999:blog-7294165939647321702.post-69278538271476947662010-08-08T12:23:54.913-04:002010-08-08T12:23:54.913-04:00hey saj, i know im being a big PRUDE here(i hope t...hey saj, i know im being a big PRUDE here(i hope thats the word) or at the very least a snobbish purist, BUT DUDE WOTS A TECH GUY DOING ON A VALUE SITE!!!!!!!!!!!!!!!!!!!!(who went bankrupt later in life and commited suicide)rayhaannoreply@blogger.com