Adapting value investing to the Indian environment4 min read . Updated: 12 Nov 2014, 07:07 PM IST
Conviction and patience have to be inbuilt in value investing, be it in India or anywhere else
Value investing is catching up in the investment community. Well, to be fair, it has been officially around for almost 90 years, since Benjamin Graham and David Dodd (professors at Columbia Business School) wrote about ‘margin of safety’ in the context of buying shares. In comparison, the development of the Indian equity market is much more recent and the application of value investing to the universe of stocks here can sometimes get tricky. A panel of four portfolio managers, who in their own ways rely on the tenets of value investing, was present at the Morningstar Investment Conference 2014 held on 11 November in Mumbai. They highlighted that the basic value investing goal is to buy a stock at a price below its intrinsic value or at a discount.