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Value Idea Contest: Veolia, Risky and Not Very Cheap

April 02, 2013 | About:
Chandan Dubey

Chandan Dubey

97 followers

About the author:

Chandan Dubey
I invest because I want to be free by the time I reach 40 years of age i.e., 2025. My investment style is to find a small number of bets with large margins of safety. I pay a lot of attention to management and their incentive. Ideally, I like to buy owner operator businesses. I am fortunate to have a strong inclination towards studying. I aid my financial understanding by extensive reading in psychology, economic, social sciences etc.

Rating: 3.5/5 (6 votes)

Comments

Ungoat
Ungoat - 1 year ago
Wow!

I don't know much about VE, but your post is great.

Honestly, I think you deserve to win this contest.

What you present is very true to my experience of value investing. Here's how I think about it:

A) You have an open mind. You went in thinking this stock might be a good investment for you, and changed your mind based on the data.

B) You have written one of the few articles that is related to what I spend 99% of my investing search on, which is rejecting stocks.

C) For me, a negative result is actually much more useful and educational. I'd rather read about risk factors and why not to invest in something, than why I should invest. Most articles are of the 'Gosh, look how cheap this is' variety. But I don't need 3 pages to convince me when something is cheap. Its obvious when something is cheap and I should be able to work it out on the back of a napkin. The risk is in buying something that looks cheap when it actually isn't. I think our training would be better served by more 'look, its actually not cheap' articles and less of the 'gosh, look how cheap it is' articles.

Well done!
cdubey
Cdubey premium member - 1 year ago
Thank you for the kind words. Sadly reporting suffers from survivorship bias. We under report on the negatives. I was considering if I should post this or not. But finally I decided to do so.
RIPDOG44
RIPDOG44 premium member - 1 year ago
One of the best articles I've read on not only this site but many other investment sites.
bartjs
Bartjs - 9 months ago
great article

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