Investment Mantras by Bishnu Dhanuka

FICCI Ladies Organization Jaipur Chapter organized a workshop on Investment Mantra!

An investment in knowledge always pays our best interests. We learned about Investment Mantras & Wealth creation by Mr. Bishnu Dhanuka, who is an accomplished businessman & a highly successful investor. When it comes to investing, he is an ardent follower of Warren Buffett that partly explains his success with juggling money, for over 50 years.

We welcomed him! This session was to enable us to prevent, making poor financial decisions that can take years to overcome.”

Nobody else is making financial decisions in our lives, with zero conflict of Interest, except us, we should be in a position to take the final call on our Investment portfolio, without any bias, taking steps, judiciously towards wealth creation.

Lot of us were not exposed enough to become financially, literate in our formative years at schools & Colleges. Not many of us played Money games so seriously then, but now, it has become the need of the hour to let our hard earned money, systematically make more money for us.

The best investment we can make is to our self and our financial education. It’s the obvious starting point to building more wealth. As they say, Money is like our 6th sense, we can’t enjoy the first five without it.
Few takeaway points from the workshop are as below:

The workshop explained to us the technique and mindset of financial investing. We went through the various asset classes – fixed deposit, gold, real estate and shares as the basic financial assets and pros and cons of each asset class.

It gave us an understanding of the financial investment philosophy of the most successful stock investor and one of the world’s richest men – Mr. Warren Buffet of Berkshire Hathaway. Following Mr. Buffets investment style, Mr. Dhanuka explained to us why he feels the investment in shares of companies can be the best asset class if we correctly follow his investment style.

The investment style is based on four important principles:

1. Choosing the right partner: it consists of choosing management which is working for the interest of the shareholders, which is allocating capital rationally and uses surplus money to buy back shares and avoids dilution of capital. The shareholders are treated like partners with such management and accounting reports are straightforward and honest.
2. Choose an excellent business: the business which offers the highest possible return which is also consistent and predictable and where we can take advantage of annual compounding rate of return with the least amount of risk.
3. High Return on Equity or Net Worth: He explained to us the basic concepts of ROE and RONW and how to calculate it. Citing it as one of the most important ratios to assess the performance of companies, he also gave us examples of companies in India with consistently high RONW which could be correlated with high returns on the stock market.
4. Try and choose a company with a consumer monopoly business with a toll bridge concept, which helps in the predictability of future returns.
   He then explained to us that share investments should be from surplus money, should be for long-term, based on fundamental analysis and not for excitement purpose (for which we can always explore other avenues).