Caveat Emptor….

Caveat Emptor ….is of course Buyer Beware…for the readers of this blog…

Subramoney.com is a blog run by P V Subramanyam a graduate of Mumbai University. That is the only qualification he has…of course he has passed a few exams on accounting, cost accounting and secretarial functions. He is also trained as a lawyer. This has allowed him to be invited to be a member of one accounting body. That of course is not a qualification. It is a membership.

He is an investment professional and like all investment professional he has got somethings right and many things wrong. Happily for him (and luckily as Taleb would say) his rights have been better than his wrongs. Actually it is more of compounding than spectacular success that has worked for him. So start early is not only a good thing to do, but if you follow subramoney, almost mandatory.

This is not an investment advice portal, nor is this blog an income creator or a client driver for him. To that extent he encourages you to analyze, experiment, and then invest. He has a fetish for risk control – and you can consider him a risk freak. His worst day will be when he thinks he understands risk.

Regarding markets – debt and equity – he understands that he does not understand them. He also concurs with Ken Fisher that the market is a great humiliator and finds newer ways of fooling you.

He knows that India is the most over researched market and he cannot add any value in armchair research. His research therefore restricted to reading about 40 balance sheets in a year….and understanding 5 or 6. He understands cash flow – thanks to the Gujjus and Madus in his friend circle. Most of his understanding of markets have come from talking and listening – and some theory from the 200 odd books that he claims to have read. I have no proof of his having read – so one more caveat.

He is biased towards equities – but he has had fantastic runs in the debt market with debt funds, as well as bonds. In the past 3 years (2009 to 12) he has got upwards of 16% p.a. – and thinks it is not sustainable beyond 2-12 months.

Please do not take anything on this blog as an invitation to buy, sell, short, leverage in equities, debt, real estate, gold….This is just his views, and are subject to market risks and Subra understanding risk. You must read all that he has written about the content on his blog before you can claim to understand what he writes. There are times when he wonders what he has written. So if you understand ALL that he has written, he himself would be surprised. He reads some of his stuff after a year and chuckles

‘did I really write that piece of shit’……….but is too lazy to delete them I guess. So caveat emptor.

He takes very aggressive calls with a small portion of his portfolio, but major part depends on ‘n’ of the compounding formula and not ‘r’ . For those who have forgotten the formula is  (1+r) raised to N.

so do read subramoney, do your own research, then invest. Mutual funds are good, but still needs understanding and research.

Investments of course are subject to market risk.

Reading is subject to understanding risk.

– a well wisher of Subramoney.com

PS: I like the fact that he has promised not to edit this.

Who am I: a fund manager….but subra hardly listens to me. So I am not one of the famous ones…My AUM is a digit less than what Naren manages, but I have 3 digit lesser number of clients than what he has.

 

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6 Responses to “Caveat Emptor….”

  1. Would love to read a post on Cash flows, all the gems which you acquired over the years and from your gujju/maddu friends !!

  2. Sanjay Singhaniya on January 26th, 2013 at 3:42 pm

    I understand most of the part. No offence meant, but this is funny and contradictory :
    “He has a fetish for risk control – and you can consider him a risk freak. His worst day will be when he thinks he understands risk.”
    So Subra is trying to control risk which he supposedly does not understand. 🙂
    I think the only way to control risk without knowing risk is diversification.
    The reader base of subramoney.com is very wide. Some of them just want to what should be asset allocation, some of them want to know processes followed by Subra for picking up stocks. Some of them want to know about reading balance sheet. Some are happy with Subra’s advices about how to live life in general.

  3. Subra,

    So you are Bcom, CA, ICWA and LLB too!!!!

    Please clariy.

  4. i am only a member of the Chartered Accountants body. I have passed many other exams, no not have passed LLB, but trained to be a lawyer, yes.

    other exams passing does not matter whether it is costing, or secretarial….no membership to show 🙂

  5. i am in the process of understanding risk..the day I announce i have understood risk, I hope I drop dead. Risk is too damn complicated for somebody to finish learning – that is what this ‘friend’ means. By the way he handles a 4 figure aum 🙂 I DO NOT.

  6. Subra Sir,

    I have always believed you can not control risks, By defination risk would mean unknown outcomes how u can control unknown outcomes beats me & if you know the potential outcomes beforehand it can not be risk it is a gamble you are taking.
    but what you do control is clearly known dangers which others have taught us because they got busted doing those activites or we ourselves have gone through. personally risk is nothing but a gamble taken by person who wants something in reward (normally monetary).

    The gist of above comment ,read blogs like subramoney because only few people dare to reveal how they got banged up & lived to tell the tale so you do not do those mistakes

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