Buoyant Capital

24/04/2024

Mr. Jigar Mistry of Buoyant Capital in conversation with CNBC-TV18

06/03/2024

Mistry of Buoyant Capital in conversation with CNBC-TV18

01/03/2024

Mistry of Buoyant Capital in conversation with ET NOW

22/02/2024

Letter no. 129 | Ten billion dollar lesson

Ever wondered how well we truly grasp the companies we invest in? In today’s ET article, we look at Amgen, a US biotech giant that soared to success with one blockbuster drug, only to hit flatline for over a decade! How Amgen discovered that drug is even more intriguing. With limited corporate insights and an unpredictable future, managing a margin of safety is paramount. Join us today as we explore the repercussions of disregarding this principle - both theoretically, through DCF model and practically, through the events of 2008.

Read here: http://tinyurl.com/mw37az7j

Our previous articles can be found here: https://www.buoyantcap.com/our-memos/

A notable book that emphasized the importance of corporate culture by looking at successful companies (stock price performance as a guide) ranked Amgen prominently. Amgen's adeptness in "embracing a myriad of possible dangers" was a strategic manoeuvre that propelled the company to a superior standi...

16/12/2023

Hi,

PFA the Buoyant Opportunities PMS Factsheet for Nov 2023.

https://www.buoyantcap.com/wp-content/uploads/2023/12/Buoyant-Factsheet-2023-11.pdf

Everything looks just perfect. India is the world's best positioned large economy. Its demographic, political, economic and business potential is on a multi-decade ascending trajectory. Modi is coming back in 2024. Digital, financial, infrastructure, governance and policy initiatives are combining to create a golden period of expansion and prosperity for Indian companies.

And we, at Buoyant Capital, are getting more than a bit cautious.

With large dollops of cash, a significantly different-from-usual large cap position, very select choices in small/mid caps and a few months of mild under-performance vs. the BSE-500 we are decidedly not aligned with the flavour of the day.

There are two heavy reasons for this anti-consensus stance...
1. Valuations - not just high, but ridiculously high in a wide swathe of instances. In the face of sluggish global macros and a sticky, higher-for-longer interest rate cycle
2. Consensus - around a variety of outcomes, not just the 2024 elections. These include runaway growth assumptions at persistent margins for a whole lot of not so great businesses, implying unrealistic demand trends

This month's Buoyant Opportunities Factsheet contains a link to Jigar's recent write up on small caps. And how small caps, like most things known to us, move in cycles.

This link will take you to a page that’s not on LinkedIn

11/12/2023

Join us for an insightful conversation as Jigar Mistry shares valuable perspectives on CNBC TV18 Live. Gain unique insights into the financial landscape and stay informed with this engaging discussion. Don't miss out – tune in now

16/11/2023

Watch Jigar Mistry on CNBC TV18 (16 Nov 2023), sharing insights on IT cos like Tech Mahindra, Infosys and TCS. He also spoke on Public Sector Undertakings (PSUs).

Watch the full video here: https://zurl.co/jJTs

Join us for a compelling conversation as Jigar Mistry from shares his expertise and perspectives in an exclusive interview with CNBC TV18...

16/11/2023

Letter no. 127 | 15 Nov 2023 | Buoyant Capital | Small Cap cycles

Starting Samvat 2080, we've shared compelling data on the brilliance and potential pitfalls of small-cap cycles. Retail now owns 49% of small-cap free-float, gaining over INR 4.4 trillion since March 23.

In our latest Moneycontrol article, we dissect the impact of various float levels and company sizes on share price returns. We also delve into why small-cap rallies can turn vicious on the downside, drawing insights from past episodes. Read more: https://zurl.co/ZeRz

01/11/2023

Gain insights on market dynamics and our strategic positioning. Join our webinar to navigate the future of your investments. https://zoom.us/webinar/register/WN_9Hma3fwaStqY-P4Z1ZfD1A #/registration

14/06/2023

Letter no. 123 | Network effects

In economics, the network effect refers to the phenomenon where the value of the product or service rises disproportionately with the increase in number of users.

In our moneycontrol article today, we look at how this effect helps generate huge shareholder value (Microsoft, Facebook), let an inferior product retain market-leader status (PS2 vs. Xbox) and imparts huge pricing power (Apple music vs. Big Four record labels).

However, the existence of regulatory authorities possessing overriding powers can significantly disrupt the network effect's influence and impact, as IEX is finding out off-late. Read here: https://tinyurl.com/32cjj8dd

Our previous articles can be found here: https://www.buoyantcap.com/our-memos/

Our Memos Our Memos Network effects Letter no. 123 In economics, the network effect refers to the phenomenon where the value of the product or … Read More Power sector ailments, and the new Electricity Act Letter #122 Strong power demand (higher than GDP growth in 2 of the past 3 years) and possib...

23/05/2023

Letter #122 | Power sector ailments, and the new Electricity Act

Strong power demand (higher than GDP growth in 2 of the past 3 years) and possible enactment of the new Electricity Act in the monsoon session have many investors excited. And if implemented earnestly, it has the potential to change India’s electricity landscape. But… alas, there is always a “But”.

Our ET article today has two broad strokes. One, it deals with the state of the industry as it stands today; how each sub-vertical stacks up on the returns profile. Two, it takes a look at the historical reform attempts starting in 2002 and what went wrong where. It is too large a problem to be left alone and hope a solution emerges. Strong action is called for; read here as to what should it entail: https://tinyurl.com/5349dz36

Our previous articles can be found here: https://www.buoyantcap.com/our-memos/

16/05/2023

Letter no # 121 | Buoyant | Crude, forex, rates and equity markets

Crude oil is down 12% (1m) and 33% since Jun-22. India imports 87% of its requirements; lower prices are good. But, counteracting forces often play out. Crude impacts India’s BOP, inflation, govt. finances and rates. Our article in moneycontrol explores these nuances; here: https://tinyurl.com/yc8reted

Lower crude helps India save $68b a year. For context, BSE 500 F22 pre-tax profits were only $103b. Given (a) the lowest FFTR-Repo differential, (b) overnight call rates breaching Repo (only the third time this century), and (c) global equities rejoicing the potential end of the rate-hiking cycle, unique Indian considerations are gaining importance.

Our previous articles can be found here: https://www.buoyantcap.com/news-resources/memos/