So this is an interesting discussion, here are some of my observations: 1. This is a simple Ben Graham method Mohnish has used in regards to looking at the Book Value and comparing it to market cap. If we liquidated all the assets we should be able to make money. The only issue I (and probably many investors) is that you need to liquidate the assets. Property Plant and Equipment is a Non-Current Asset for a reason. It's no guarantee we will liquidate and find a buyer. 2. There is nothing wrong with Guy's approach to Master Card - Buffet's rules 1. Don't lose money, 2. Don't forget rule 1. We need to avoid permanent loss of capital. 3. Suntecks PE ratio is currently 133?!!! Have a look at their earnings history. (Granted this is a bet till 2030 or whatever year it is) 4. In the video we keep looking at the price of 100INR, but price is not related to the value in all cases. price is what you pay, value is what you get 5. I'm just a random on the internet so my opinion and thoughts dont actually matter HAHAH 😆😆😛😛 Thanks Yapps as always
Yes and thats why a huge margin of safety is required for Graham approach, as for mohnish I think this is clearly a book value play for him. I think he cut back on his holding to take back the capital with some profit, and remain holding some for the sake of the bet. :)
Just a one question, he says that Suntech had 60 finished apartments in Mumbai which was worth over $500 million ( I'm assuming he meant dollar because in 2016 Suntech's market cap was $200 million). Is he saying that one apartment was worth ₹60 crore? ( $500 million into rupees that's ₹3600 crore (When dollar was 72). 3600/60 apartments = ₹60 crore each apartment???
Suntech is a lousy business since 2020. Negative growth and a very very high PE. I think many people are mislead by this video. The stock is now trading at a price 120 times its earnings. Until 2019 it was a fine business. But after that their earnings fell by one third of 2019 earnings and debt is 16 times the earnings!
Amazing explanation... I love mohnish pabrai
So this is an interesting discussion, here are some of my observations:
1. This is a simple Ben Graham method Mohnish has used in regards to looking at the Book Value and comparing it to market cap. If we liquidated all the assets we should be able to make money. The only issue I (and probably many investors) is that you need to liquidate the assets. Property Plant and Equipment is a Non-Current Asset for a reason. It's no guarantee we will liquidate and find a buyer.
2. There is nothing wrong with Guy's approach to Master Card - Buffet's rules 1. Don't lose money, 2. Don't forget rule 1. We need to avoid permanent loss of capital.
3. Suntecks PE ratio is currently 133?!!! Have a look at their earnings history. (Granted this is a bet till 2030 or whatever year it is)
4. In the video we keep looking at the price of 100INR, but price is not related to the value in all cases. price is what you pay, value is what you get
5. I'm just a random on the internet so my opinion and thoughts dont actually matter HAHAH 😆😆😛😛
Thanks Yapps as always
Yes and thats why a huge margin of safety is required for Graham approach, as for mohnish I think this is clearly a book value play for him.
I think he cut back on his holding to take back the capital with some profit, and remain holding some for the sake of the bet. :)
That's finesse value investing 🙂
But what is this whole contest with Guy Spier?
What is it about, why did they have a contest?
Did he sell his shares? I don't understand, and I can not see suntech reality in his portfolio
13Fs only have US holdings
he did not, still holds it
Just a one question, he says that Suntech had 60 finished apartments in Mumbai which was worth over $500 million ( I'm assuming he meant dollar because in 2016 Suntech's market cap was $200 million). Is he saying that one apartment was worth ₹60 crore? ( $500 million into rupees that's ₹3600 crore (When dollar was 72). 3600/60 apartments = ₹60 crore each apartment???
He said Out of 25 project, 1 project of 60 finished apartment worth of 500 mill.$
Suntech is a lousy business since 2020. Negative growth and a very very high PE. I think many people are mislead by this video. The stock is now trading at a price 120 times its earnings. Until 2019 it was a fine business. But after that their earnings fell by one third of 2019 earnings and debt is 16 times the earnings!
It’s not the realized earnings but the assets on the BS that matter here.
Reality will turn around in 2024-25 in India. Look at the price to earning ratio of the target segment and you will get the estimate.
This is an old video....But its fine...Besides Sunteck reality is now going down in the global cry for Fed Rate hikes and De-growth concerns.
just look at the pe of suntek
Aees
Sunteck is going down don't consider sunteck.......don't fall for it
So far it didn’t age well.