Vivek is the founder and owner of TechnoFunda. Today, I got a chance to get an in-depth look at Vivek's investing journey, his strategy, his life, hobbies, favourite books and his advice to retail investors like myself. Without further ado, let's get started.
How did you start your investing journey - What got you
to the markets, how did you get interested in it?
- Initial interest
started way back in 2004 during my college days as many of my relatives were
into investing. Formally started investing (I would say more of trading
actually) during 2006-2007 with very small capital. Just sheer dynamic nature
of markets got me interested in it
The first stock you bought, first loss and what did you
learn from it?
- Well, like everyone
else who starts into stock markets, I too mostly bought junks in my initial
years. First stock was Karuturi Global (which is almost bankrupt company now).
Had bought many such junks in my initial years. Biggest learning was of course
to never compromise with quality of businesses (which came much later), but I
have still 1 share of each of these (some even have got delisted now) so that I
get reminded of my mistakes and ensure I don’t repeat them.
One advice you would like to give to younger people who
have just started earning toward the financial freedom journey.
- Keep high savings
rate. Keep investing in quality businesses. Be disciplined in spending habits.
Can you tell us a bit more about TechnoFunda and what led
you to founding it? What are your future plans for it?
- Well, my formal
education at NMIMS which was MBA in Capital Markets (in association with BSE).
I got introduced to array of subjects like fundamental analysis, business
valuation, technical analysis, SEBI laws etc. and had ample of reading
materials in my library around it. By studying them altogether I realized that
they are not different streams of stock markets but complimentary to each
other. Was again fortunate to have very good teachers, mentors and guest
lecturers from industry. This is when I tried to blend both these approaches
and got interested into TechnoFunda approach. And later kept on discovering new
strategies and techniques which were very powerful for investing. Future plans
are more around spreading awareness around power of blending technical and
fundamental analysis through various channels.
Some insights on your stock-picking process.
- In simple terms, I
seek to find businesses which I can remain invested for long time and have
quality management along with inherent competitive advantages. I use technical
analysis to screen some trends and then apply my fundamental analysis to
validate quality parameters around industry, financials, business model and
With the current market conditions of bearishness, what
do you think should be done? How should people control their emotions?
- As a long term
investor, we should always be delighted with bearishness and keep buying
ownership in great businesses. Actually, if we think as partners into these
businesses then there is no need to control our emotions (as we will be in fact
happy when price falls)
What are your favourite books?
- Listed here: https://www.technofunda.co.in/books/
What are your hobbies?
- Swimming, Table
Tennis, Reading Books, Travelling
How did you increase your market knowledge?
- First, by doing my
formal course MBA in Capital Markets helped me immensely. I was blessed and
fortunate that I had excellent faculties and market practitioners who came to
teach us. Then of course reading lot of books helped. We also had live mock
trading room which also helped. Later stage applying and trying to validate
concepts in the market. And recently networking with like-minded investors have
helped immensely in idea generation and exchanging notes/experiences on
AGM/Management discussions etc.
What are some steps/rules in money management you think
goes a long way to help the saver get the best out of his savings/investments?
- Think Long Term. Act
Long Term. Partner with people who believe in long term.
What are the basic metrics you look at a business when
you are valuing or looking at it to invest?
- I start with
qualitative factors like longevity, durability, competitive advantages etc. and
validate them with quantitative factors like revenue growth, margins, RoE,
RoCE, cash flows, working capital cycle etc. Then of course trying to value
them on relative and intrinsic basis.
Any example where patience has paid off for you.
- There are many such
examples. One such is investment into Vinati Organics which I have now held for
~10 years and have patiently held during ups and downs. The market cap since
initial investment is now 40x.
Who is your role model in investing?
- I don’t have a
single role model but many for various styles of theirs. Prof. Sanjay Bakshi,
Sanjay Ved, Charlie Munger, Peter Lynch, Bharat Shah are few whom I admire.
Disruptions - What do u think of them and how do u see if
a business you are looking as a prospective investment won’t get disrupted
- I think disruptions
are part of business ecosystem and will keep happening. The pace has
accelerated quite significantly in recent times. One way is to look at
competitive advantages for how business protect themselves and other
interesting aspect should if a business can themselves disrupt internally and
evolve to be better for tomorrow. I think looking at the lens of companies who
are evolving and able to transform with disruptions should be ideal candidate
So many quotes from Mr Warren Buffet and Peter Lynch ,
any quotes that didn't work for you?
- Well, they all work
differently in different times. So, no point in discussing them here.
When do u sell a stock? What is the criteria according to
your rationale that a stock has reached its life? When do you know it’s time to
get out of a stock?
- I use blending of
technical indicators to take sell decisions along with fundamentals of the
business. Significant impairment of business quality, realizing that management
is crook etc. are in fact non-negotiable reasons to sell.
In your investing journey - one thing u did which you
think you did great and one thing u regret doing?
- Glad that I read so many books (of various subjects) in my life so far and understood importance of saving very early in my life. Regret is that I wasted my initial years of stock market in trading, F&O and buying junk businesses, wish I could have got in touch with mentors/gurus at early stage.
The above is for educational and informational purposes only. It is not an endorsement or a stock recommendation. The author may be holding the securities mentioned above. Do your independent and thorough research before investing.