Stoic Talks

Stoic Talks

S01E13: “Perma Bear Or a Rational Optimist?” with Shankar Sharma:

As the saying goes, “I am only responsible for what I say, not for what you understand”.

Markets are the best place for all such kinds of misinterpretations. The tendency of market participants and media houses is to take stuff out of context many times.

Well, we have with us today, Mr Shankar Sharma who as per his own admission has often been one misinterpreted voice in the market.

A person with a sharp research mind & an acute investor, today discusses with us various interesting nuggets, thought processes & models he followed over 3 decades of his investing journey & of course, he also talks about his image of being a “Perma Bear” in the markets.

Without much delay, let’s hear from Mr Shankar Sharma:

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Profile:

Shankar Sharma is the Vice Chairman & Joint Managing Director of First Global.

Notes:

[4:30] The role of “Luck” & “Skill” in investing.

[6:10]: Indian companies were late in recognising the importance of high Return ratios & Cash flows.

[7:13]: For large parts of market cycles – Investing is simple.

[8:51]: Momentum is the centre for our investing. We will play both – Negative & Positive momentum.

[14:17]: Risk management strategies in a Negative Momentum trades

[16:15]: Falling knifes – Timing, Catalysts & Building positions.

[21:05]: Selling strategies.

[23:09]: Case Study: A2Z Infra Engineering Ltd

[28:42]: The limits of Computer driven models.

[30:17]: How much weightage to the management ?

[34:54]: Sector weights vis-a-vis the Index – The circle repeats.

[39:21]: Sniffing a rat in the Worldcom in 2001.

[42:34]: Developing a forensic framework.

[46:10]: Why is the image of Perma Bear in the Markets ?

[48:42]: Are Indians Overoptimistic ?

[51:30]: Example: Aberdeen Asset Management.

[1:01:00] How to read data to analyse government performance ?

[1:03:00] Large cap vs Small cap.

[1:04:00] Best & worst part about the ‘sell side’ analyst community.

[1:05:40] Single biggest enemy to investing success- A closed mind

[1:06:15] Views on timing the market & why investment community.

[1:08:00] Idea behind his Neuroscience project – cerebra.

[1:09:20] His involvement in Cerebra.

[1:10:00] Genre of books that he is currently reading.

[1:10:45] Interesting business models that amazes him.

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