Coffee Can Investing
Most people invest in the usual assets: real estate, gold, mutual funds, fixed deposits, and stock markets. All they end up making is a measly 8 to 12 percent per annum. Saurabh Mukherjea puts his money where his mouth is. He follows the Coffee Can approach to high-quality, low-risk investing. His firm, Ambit Capital, is one of the largest wealth managers in India which invests with this approach and delivers stupendous returns. In Coffee Can Investing, Saurabh will show you how to go about low-risk investments that generate great returns.
The stocks considered must be filtered in the following manner:
The company selected must have a market cap of at least 500 crores
Revenue growth of the company must be at least 10% each year for the last 10 years
The ROCE of the companies must be more than 15%
Benefits of Coffee Can Investing
Minimum expenses
No need for tracking the portfolio
Not affected by volatility
Outperformance by 8-10%
Contents
Introduction
Chapter 1: Mr. Talwar's Uncertain Future
Chapter 2: Coffee Can Investing
Chapter 3: Expenses Matter
Chapter 4: The Real Estate Trap
Chapter 5: Small is Beautiful
Chapter 6: How Patience and Quality Intertwine
Chapter 7: Pulling It All Together
Chapter 8: Designing Your Own Financial Plan
Appendix 1: Detailed Coffee Can Portfolios
Appendix 2: How Punchy Can the P/E Multiple of a Great Company Be?
Appendix 3: Should Investors Sell Coffee Can Stocks When Markets are Richly Valued?
Appendix 4: How Coffee Can Portfolios Outperform during Market Stress
Appendix 5: The Role of Starting Period Valuations in Determining Investment Returns