Saturday, August 16, 2014

Eleven Dimensions Global Fund

I have been encouraged by few of my friends to open a global fund to invest in emerging economies like India, Bangladesh, Kenya, Sri Lanka, or the US, UK, New Zealand, Australia and anywhere else the opportunity presents itself.

More importantly I am also optimistic about the idea pool once again which had dried up while I limited the striking distance to India and recent runup post Modi era.

I will provide more details for the Global Fund on a new website, yet to be launched. Meanwhile for those interested in investing their hard earned money in equities can email me at with a brief information about yourself and your return expectations in CAGR (compounded annual growth rate as a percentage).

Besides earning money it gives me the opportunity to meet great human beings and build lasting friendship.

Wednesday, August 6, 2014

BERGER BANGLADESH - Long term investment

Not going to waste much space or time. Company does not require much research.

Banks want to lend funds to people who are money-wise do not really need cash but just happen to, for an urgent requirement. Likewise, we need to buy companies that do not need to be listed on stock market, have adequate cash flow, but are because of a freak accident or first generation entrepreneur.

Berger Bangladesh was listed because of similar freak incident. 5% shares are listed on Dhaka Stock Exchange. Market cap 2300 Crores, PE 20, Growth 20-25%. 
CMP - 1000 BDT
Dividend - 22 BDT
Debt - 0
EPS for H1 = 27  BDT

Cash Flows - 180 Crores per annum, growing at 25% per annum

Competitive position is twice as strong as Asian Paints (35% market share in India ) in terms of market share - 60% market share in Bangladesh. Asian Paints sells at 52 PE, 6 times sales (no idea why? with 12-15% growth). Berger Bangladesh with better future and better past, current  and expected future growth rates sells at 20 PE and 2 times sales.

Tie up with 2nd biggest paint company in the world,  PPG

Also, another JV with Becker

The only end result of holding this stock for long term can be phenomenal compounding, wealth creation and financial riches. Can be a 10-15 bagger+ in a decade with very high stability in all 
economic cycles, extremely attractive dividend payouts, will likely re-rate to 40+ PE eventually.

Don't be fooled by the name Berger, in India it may have 17% market share but it is a monster, a 927 pound gorilla without any equal in Bangladesh.

Feel free to go crazy with your research.

Disclosure: Invested