Ramesh S Damani Presentation equity investment

A good presentation on portfolio creation and investment.

1. Technology or The Timeless Biz
How to Invest for the next 25 years
Ramesh S. Damani
Member, BSE
March, 2018

2. Warren Buffett v Andy Grove

3. What is this parking spot worth in 25 years ?

6. Photography – A Flash Point
2000 – 80 Billion photos
2017 – 1.3 Trillion photos
Mkt grows 1625x
Per capita 22000 photos
CAGR of 54.48%

7. The Coming end of the Oil Age

8. The End of Oil
•Technology is about to undo a century of political and economic
dominance of oil. Oil and control of it, used to be power.
•Big Oil will be undone by smartphone apps, long-life batteries and
simpler gearing
•International Combustion Engine gives way to the Integrated Circuit,
gives way to the I-store residing App.
•Almost $10 trillion of economic output is at stake.
•Future of auto, auto insurance, infrastructure, auto ancillary among
many others is at stake.

9. Auto Industry
Current Auto Electric+Driverless Vehicle
Replacing Ignition and spark plugs$390 $0 (Does not have any)
Replacing catalytic converter$1153 $0 (Does not have any)
Parts in Drive Train 20,000 20
Estimated Drive Life 150,000 500,000+
Cost per mile 53.5 cents per mile 13 cents per mile
Cost of Driver India $400 Driverless car Rs 0
Cost of Parking spot needed (South
Mumbai)
Rs 25,00,000.00 (25 lakhs) 0 (if you use a Fleet car)
Source: This is how Big Oil will die – Seth Miller, Anecdotal surveys

10. Time – The friend of the great business
•Period of Study is from 1926 to 2015, almost 90 years
•25,782 companies were publicly traded in US at the time
•Since 1926 the Dow has gone from 166 to over 25000.
•Only 4% or 1000 companies, have accounted for ALL that gain
•Even more stunning, only 30 stocks accounted for 33% of that gain
•The Best performing stock was_____________ gaining_____ at a
CAGR of _________.
•Buffett's Berkshire Hathaway went in 1977 from $___ to $________
today.
•Amazon has compounded at a CAGR OF 35% since 2000.

11. Roll of Honour – The Top 20 – 90 years
•Exxon Mobil Proctor & Gamble Wells Fargo
•Apple Chevron Intel
•GE Coca-Cola Home Depot
•Microsoft AT&T GM
•IBM Amazon
•Altria GroupDu Pont
•J&J Alphabet
•Wal Mart Merck

12. Lessons for Markets – Theodore Levitt
The railroads did not stop growing
because the need for passenger and
freight transportation declined. That
grew. The railroads are in trouble today not because
that need was filled by others (cars, trucks, airplanes,
and even telephones) but because it was not filled by
the railroads themselves. They let others take
customers away from them because they
assumed themselves to be in the railroad
business rather than in the
transportation business. The reason they
defined their industry incorrectly was that they were
railroad oriented instead of transportation oriented;
they were product oriented instead of customer
oriented….

13. Lessons for Markets - Alvin Toffler

14. Eye Balling Winners & Losers – Next 25
Potential Winners
•(Sin stocks) Liquor & Tobacco
•Gaming
•Real Estate
•Clean Energy, Anti Pollution
•Quick Service Restaurants
•Airlines
Potential Losers
•Auto
•Auto ancillary
•Auto Insurance
•Refining
•Textiles
•Banking
•Diamonds

15. What Time or Technology will not change about investing

16. How to Invest for the next 25 years
Ramesh S. Damani
[email protected]