Investment Book
Coffee Can Investing
Coffee Can Investing is a book by Saurabh Mukherjea that outlines a simple and effective approach to long-term investing. The book emphasizes the importance of focusing on the fundamentals of a company, rather than short-term market trends or news. Mukherjea explains that the term 'coffee can investing' comes from a practice in India, where people would store their valuables, including cash and jewelry, in a coffee can and bury it in the ground. The idea was to forget about the can and let it grow in value over time. In the same way, investors should choose high-quality stocks and let them grow in value over time, without constantly buying and selling or trying to time the market.
What is Coffee Can Investing Strategy?
What are the Benefits of Coffee Can Investing?
- “The standard Indian corporate thinking focuses on the promoter’s wealth, not on the shareholders’ wealth. The two are not necessarily the same’.”
- “To put this simply: companies which have high-quality accounts also tend to be companies which have high-quality management."
- “What does the management say it will do, (2) Does it do what it says it would do, and (3) How does it do what it says it will do. I thought it was brilliantly put. I”
- “Long-term competitive advantage in a stable industry is what we seek in a business’. On the subject of For how long should an investor hold the shares they buy, Warren Buffett, in 1988’s Berkshire Hathaway’s letters to shareholders stated, ‘When we own portions of outstanding businesses with outstanding managements, our favourite holding period is forever.”
- “Firms that can sustain high ROCEs, along with a high rate of reinvestment of capital into the business, deliver higher and more sustainable earnings growth compared with the firms that have high ROCEs but a low rate of capital reinvestment in their business.”

.jpg)
.jpg)

Post a Comment
0 Comments