This website and the underlying investment philosophy were developed after reading a biography of Warren Buffet authored by Roger Lowenstein.
This website is about the ocean of unreported and un-researched small and mid cap stocks available in the Indian stock markets. The majority of these will be unknown companies with ultra low liquidity, trading below book value and totally neglected by the larger investing world. The Pokaran money manager strongly believes that some of these ultra small and mid caps are bound to become tomorrow`s large caps.
Some of the Pokaran Money managers best picks and their peaks from recommendation include Avanti Feeds (15x), SKM Egg (6x), Shakti Pumps (6x), Lloyd Electric (6x), NIIT Ltd (2.6x), Dhanuka Agritech (2.4x), Tata Sponge (4x) and Tata Steel (1.9x).
Mr Jeremy Grantham, of the famed value investing investment fund GMO, believes that ” picking individual winners is next to impossible “.
(I maybe wrong if this statement was meant only for developed markets which are currently considered to be totally efficient, as per the CFA Institute)
The Pokaran Money Manager has proven that picking winners is indeed possible. Academic qualifications and mathematical wizardry are not the drivers of superior stock selection; business acumen, a contrarian outlook, the right judgement and an acute understanding of the bigger picture are the real drivers. Warren Buffet is the Oracle of Omaha, not because he can analyze financial statements, but because of his ability to connect the dots which determine the direction of markets. While the other market participants suffer from bipolar disorder, gravitating between bouts of extreme depression and irrational exuberance, the cool headed Oracle puts on his thinking hat and takes sound investment decisions. Buffet is not just an investor: he is a visionary, a thinker and a philosopher. Superior investment performance requires a secret sauce that helps the investor connect the dots and take rational business decisions.
An investing strategy that was built on identifying net-nets (stocks with working capital > market capitalization) has now morphed into a more qualitative and holistic strategy.
After reading hundreds of annual reports, business books and the biographies of entrepreneurs, the Pokaran Money Manager has now realized that the most significant attribute of his investment philosophy is business intuition. An unquantifiable X-factor, business intuition is like a bolt of lightning, the stock picker`s Eureka moment, which hits when he/she is in the middle of researching a company. Financial statements, Auditor reports, IPO prospectus, Promoter profiles etc are all important but business intuition trumps them all.
The last and equally important attribute of the investment philosophy is business conviction. The Pokaran Money Manager is not interested in running an index fund. While my first portfolio had 12-15 stocks, I have realized that I would be better off holding a small clutch of 5-6 stocks that I totally believe in. This, I believe, is the recipe for superior investment performance, as illustrated by this NYU Stern article
http://pages.stern.nyu.edu/~adamodar/New_Home_Page/invmgmt/ch6/dontdiv.htm
Mr Buffet`s decision to put 65% of his assets into GEICO is a testament to his faith in business conviction. This concept may seem alien to the students of modern portfolio theory, but business conviction, I believe, is the recipe to superior investment performance
http://www.valuewalk.com/2014/07/warren-buffetts-early-investments/
thepokaranmoneymanager 
Worthy >> good analysis..
Thanks Selvan
Perfect description of picking a future multibagger! I am of the same breed. Thanks for the great finds & generous sharing. Keep up the holy work. Thank you, Sir.
(Me too do some occasional write-ups in my Facebook page Singaraju Ram.
My recent writtings includes:
Shreyas Shipping: http://goo.gl/xyM8RE & http://goo.gl/VByDQG
Kokuyo Camlon: http://bit.do/LoTX
TCI Developers: http://is.gd/T0ytRH
TV Today Network: http://is.gd/jEe2UU & http://is.gd/EGcWkG
Transport Corporation of India: http://is.gd/JRiaqd
Godrej Properties: http://is.gd/qUiSmo
I am a proponent of portfolio concentration — under the oath of limiting my core holdings to a maximum of five, but now exceeding by 3.
Also a strong proponent of sharing—as you know, knowledge is the one & only thing in the world that grows on sharing.
If you like, please do keep in touch in my mail: singaraju.r@gmail.com or Facebook page: Singaraju Ram)
I am based in the same Kongu Belt – Salem, TN (Near Erode) – you mentioned in SKM Egg note. My wild guess is you are based in Coimbatore or atleast Tamil Nadu. Please let me know if am right! 🙂
Yes. Am from Chennai
Hi,
The style of writing is very honest and no nonsense type. I enjoyed reading your philosophy. Also you give links from where you got the message from which is something very few does. Also, Michel Burry is not a name which many Indians know, i believe. Thanks to The Big Short book and those who manage to read it the name is known.
Regarding me, I am Vinod Krishnan (40 years), Mumbai ( hailing from Palakkad, Kerala) brought up. Started investing from April 2010. Yes my portfolio is on a upside and better than FD returns, but still not yet convinced that I am really doing a value investing. I read lots of books which varies from Science, Philosophy, Biography, Management, Behavioral Economist, Indian History etc.
I enjoyed what Charles Munger has said that you should have multiple mental models to fall back upon and not dependent on one model.
I hope by reading your website , I will be able to start climbing the Value investing rope. At present I feel I am nowhere near the shadow of value investing.
I don’t know whether you have read Seeking Wisdom from Darwin to Munger by Peter Bevelin. If not the book will add more ammunition to your armory, if read please ignore it.
I Will keep visiting your website for insights.
Vinod Krishnan
Thank you Vinod. I cannot agree more. Warren Buffet and Munger are not what they are because they are good at reading financial statements. To be a good investor, you must connect the dots. And to do so, you require a philosophical perspective to humanity. Reading different subjects and understanding the interconnected nature of our existence is of great help. Keep commenting!
Hi Pokaran,
I’m relatively new to Investing and started following many bloggers(including yourself) to gain knowledge. I recently saw the GTS series in value-picks.blogspot.com. Though I understand the questions and terminologies(like Mkt Cap, Promoter holding %, NPM etc.,), I don’t know where I can filter 5000+ stocks of the bse & nse to a handful of 500 or 1000 stocks and start my analysis over that list with respect to the clues given in GTS. For example, one of the GTS clue says ‘Promoter holding is 60%’. Is there a website where I can filter and drop all the below 65% promoter holding stocks? I’ve asked the same question in value-picks.blogspot.com but have not got published.
Any clue/information to proceed will help me in educating myself. Thanks!!!
Sorry Yuvaraj. I am not very tech savvy. I only read annual reports. You may have to ask someone this question.
Yuvaraj, please visit this site to screen the stocks. http://www.screener.in/
Hi Pokaran,
Most of the people here would be salaried employees or self employed ones who would be targeting to set aside a certain sum for investing every month… As you said about concentrating the portfolio with a few select stocks, how can one do that when the stock prices go up sharply..
Say for example i want to invest 10000 every month and I buy a certain stock for a certain price and now the stock goes up sharply then would it still be advisable to buy the same stock or some other one with a better valuation?
Thanks for the good work you are doing… I stumbled upon your site just few days back..
First, I do not recommend salaried employees to do stock picking. It takes a lot of time, energy, conviction, knowledge and effort to be good at it. Stock picking is best left to people who do that for a living. Second, I recommend that you put your money in a small and mid cap value oriented mutual fund. Small/Mid/Value are areas where you will be able generate superior returns and these are the best areas to be in when picking a mutual fund. You cam look at SIP or systematic investment plan.
Thank you…
Sir i want to Know about Tata Global Bevereges Ltd
It is expensive
Hi
What is your view on cybertech. I found your site today and it is really interesting. Do you have any new recommendation.
Cybertech looks interesting although more research is needed
Hello sir , i have been stuck up in burnpur cement , Sharon bio and Goddavri PowerIspat Ltd……please provide your valuable insight
1) Sharon Bio may or may not be good. I cant really tell so easily.
2) Cement is dependent on construction sector. If that sector does well (which may take a few quarters) then cement will do well
3) From a numbers perspective, Godavari is great but am not so sure about corporate governance. Corp Gov is likely the reason why the stock trades at 4 times earnings
thank you sir for your valuable comment
I have Basant Agrotec @Rs.4.10/share, Marksans Pharma @62 & Tata Global @ 163. I can hold these for next 18-24 months. Please gratify me with the future prospects of above.
Hi,
Nothing moving here from long time.
Hoping for a new recommendation soon