Never invest in a great business of a bad promoter.
Joined January 2016
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This society has blocked the access to footpath by keeping 2 plant pots. Kindly look into it and remove for easy access to pedestrians. Take action against society for blocking public access. @mybmc @mybmcwardKW
This is what illiquidity can do. 40% spread difference. Liquidity can dry up very quickly in SME segment. Darlings of 2023-24 bull run are down 50-60%.
WhatIsValue retweeted
If a salaried person wants to build a software application or digital services agency, the entry barrier is virtually zero.
They just need a laptop and an internet connection.
But if the same person wants to start manufacturing...
They need:
• Land
• Factory space
• Expensive machinery
• 6-12 months of approvals
• Huge upfront capital
My suggestion to the Government of India:
Build Manufacturing Parks for first-time entrepreneurs.
Instead of selling 10-acre plots, create buildings with 500-1,000 sq. ft. ready-to-use factory units.
Every unit should come with:
• 3-phase electricity already connected
• Pollution & fire approvals already cleared
• Shared CNC machines, injection moulding, testing labs & warehouses
• Common logistics and loading docks
• Month-to-month rentals instead of land purchases
• Single online portal to book a unit within 7 days
Let engineers keep their jobs while testing manufacturing on a small scale.
We built co-working spaces for software.
It's time we built co-factories for manufacturing.
@PMOIndia @PiyushGoyal @minmsme @NITIAayog
That’s why one should always manage risk through position size no matter how confident you are on the business.
I came across Noida Toll bridge company around 2014.
Toll bridge. Connects Delhi to Noida. Assured revenue. Moat.
What could possibly go wrong?
Had Warren Buffett found the stock? He would've "backed up the truck on this one". Right?
Mr. Pabrai probably has a lecture somewhere extolling the virtues of this toll booth "business model".
But, over the next few years I watched Noida toll bridge co' turn from a "hidden gem" to public sh*Tshow.
In 2016, their toll revenue dropped to zero. overnight. Allahabad HC order.
In 2017, they "pivot" to advertising.
In 2018, IL&FS - the parent co' gets bamboozled - the IL & FS fiasco.
In 2020, covid. Loss of traffic. Advertising revenue gone.
In 2024, Supreme court dismisses appeal to halt the 2016 Allahabad court order revoking right to collect tolls.
In 2025, NOIDA authority demands Rs 100 crore for the advertising license fee.
In April 2026, Delhi HC provided interim relief against the Rs 100 cr demand.
The Noida toll bridge lives on. ~3 Lac vehicles pass through DND everyday. That number has been growing.
If there's a moat, its in shareholders' imagination.
I don't have a lesson for the whole episode except that business risk can show up in more ways you can imagine.
It's also why stories of infinite fantastical growth, of "inflection points" need to be dug deeper. First principles thinking etc etc.
Happy Monday. Do your DD. Pray. Get lucky.
Share a value (or growth) trap from your experience in the comments 🍺
When will the retail learn? Came to know about this company through - youtube.com/watch?v=h5ZQvYya…
@shuchi_nahar someone’s impersonating you. You have arrived!
You should let your followers know.
There are few managers who understand the depth of their business very well. Patanjali Keswani of Lemon Tree Hotels is one of them. His understanding of hotels industry is unmatched.
Markets never react to the same news twice. Proved wrong by Garware Hi Tech Films in under 5 months.
#ChamanlalSetia
Management says price of paraboiled rice is approx. $900-1000 CIF Middle east. The analyst asks is it per kg or per ton 😂?
