In this episode we discuss:

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Timestamps:

00:00 - Introduction

01:00 - What is Inflation?

05:00 - How is Inflation measured?

08:00 - Reasons for Inflation

10:00 - Average Inflation

11:30 - Hyperinflation

15:00 - Hedging against Inflation

22:15 - Conclusion

Resources:

https://www.investopedia.com/terms/i/inflation.asp

http://www.econpi.com/

Useful links:

All Streaming Platforms for Cold Brew Money Podcast: https://coldbrew.money/links/

About Cold Brew Money: https://coldbrew.money/about/

All Cold Brew Money Episodes: https://coldbrew.money/episodes/

Cold Brew Money Tools: https://coldbrew.money/tools/

Buy Us A Coffee: https://www.buymeacoffee.com/coldbrewmoney

Hosts:

Atit Kothari: https://kothariatit.com/

Tapan Desai: https://tapandesai.com/

Atit’s Newsletter: https://atitkothari.substack.com/

Tapan’s Newsletter: https://tapandesai.substack.com/

Contact Us:

Twitter: https://twitter.com/coldbrewmoney

Instagram: https://www.instagram.com/coldbrewmoney/

Disclaimer:

The information in this video is general information only and should not be taken as constituting professional advice from Atit or Tapan. Atit and Tapan are not financial advisers. You should consider seeking independent legal, financial, taxation or other advice to check how the information relates to your unique circumstances. Atit or Tapan are not liable for any loss caused, whether due to negligence or otherwise arising from the use of, or reliance on, the information provided directly or indirectly, by use of this video.

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Timestamps

00:00 - Introduction

3:55 - Coffee Can Investing

8:30 - Philosophy

12:55 - Expenses

16:00 - Coffe Can Formula

20:30 - Sales Growth

22:00 - Return on Capital Employed

25:45 - Summary

27:00 - Putting it into Practice

29:00 - Coffe Can Companies

Notes:

Kirby, in a note written in 1984,5 narrated an incident involving his client’s husband. The gentleman had purchased stocks recommended by Kirby in denominations of US$5000 each but, unlike Kirby, did not sell anything from the portfolio. This process (of buying when Kirby bought but not selling thereafter) led to enormous wealth creation for the client over a period of about ten years. The wealth creation was mainly on account of one position transforming to a jumbo holding worth over US$8,00,000 which came from ‘a zillion shares of Xerox’. Impressed by this approach of ‘buy and forget’, Kirby coined the term ‘Coffee Can Portfolio’, a term in which the ‘coffee can’ harks back to the Wild West, when Americans, before the widespread advent of banks, saved their valuables in a coffee can and kept it under a mattress.

The Coffee Can Portfolio: Robust returns with a low degree of uncertainty

Saurabh Mukherjee: Saurabh Mukherjea is the Founder and Chief Investment Officer of Marcellus Investment Managers. Current portfolio INR 5700 crores in Feb 2021.

5 Key Take-Aways:

Philosophy: 

There is an overwhelming dominance of physical investments like gold and real estate in most Indian households’ portfolios. 88 percent of an Indian investor’s wealth is in gold and real estate, a dominance not seen in any other large economy of the world. Unlike the stock markets in some developed countries, the Indian stock market has very few great companies that sustain leadership over long periods of time. Coffee Can Portfolio using a simple construct: we use straightforward investment filters to identify ten to twenty-five high-quality stocks and then leave the portfolio untouched for a decade.

Expenses:

Coffe Can Formula

Sales Growth in double digits

Return on Capital Employed

Resources:

GDP and other macro indicators: https://coldbrew.money/28-macro-indicators/

https://www.reading.guru/coffee-can-investing-by-saurabh-mukherjea/

https://www.moneylife.in/article/the-buy-and-forget-of-coffee-can-portfolio-forget-it/53221.html

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Timestamps

Rant on the weather (oops): 00:00

Category - Personal Finance: 3:15

- Total Money Makeover or I Will Teach You To Be Rich: 3:29

- Money: Master The Game: 06:05

- Automatic Millionaire: 8:44

Category - Investing Philosophy: 10:02

- Dhandho Investor: 10:15

- Richer Wiser Happier: 12:52

- Psychology of Money: 15:31

Category - Investing, Valuing Business: 17:14

- Rule #1 Investing:  17:30

- Coffee Can Investing: 19:15

Category - Investing (Advanced): 22:10

- Bogleheads Guide to Investing: 23:37

- Intelligent Investor: 24:50

Honorary Mentions: 26:15

Summary: 29:37

Useful links:

All Streaming Platforms for Cold Brew Money Podcast: https://coldbrew.money/links/

About Cold Brew Money: https://coldbrew.money/about/

All Cold Brew Money Episodes: https://coldbrew.money/episodes/

Cold Brew Money Tools: https://coldbrew.money/tools/

Buy Us A Coffee: https://www.buymeacoffee.com/coldbrewmoney

Hosts:

Atit Kothari: https://kothariatit.com/

Tapan Desai: https://tapandesai.com/

Atit’s Newsletter: https://atitkothari.substack.com/

Tapan’s Newsletter: https://tapandesai.substack.com/

Contact Us:

Twitter: https://twitter.com/coldbrewmoney

Instagram: https://www.instagram.com/coldbrewmoney/

Disclaimer:

The information in this video is general information only and should not be taken as constituting professional advice from Atit or Tapan. Atit and Tapan are not financial advisers. You should consider seeking independent legal, financial, taxation or other advice to check how the information relates to your unique circumstances. Atit or Tapan are not liable for any loss caused, whether due to negligence or otherwise arising from the use of, or reliance on, the information provided directly or indirectly, by use of this video.

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In this episode we discuss, how do you buy a car in the US and discuss the following

Timestamps

TV show rant: 00:00

Alibaba: 01:16

Bitcoin Discussion: 03:13

Buying a car in the US: 06:10

Should you even buy a car: 07:37

Type of car: 11:07

Deciding on the brand (value, luxury): 14:07

Make, Model, Trim, Year: 18:43

Used vs. New: 20:18

Factors to consider: 21:49

Resources: 22:02

Leasing vs. Buying: 25:13

MSRP vs. OTD: 27:16

Insurance: 29:27

Useful links:

All Streaming Platforms for Cold Brew Money Podcast: https://coldbrew.money/links/

About Cold Brew Money: https://coldbrew.money/about/

All Cold Brew Money Episodes: https://coldbrew.money/episodes/

Cold Brew Money Tools: https://coldbrew.money/tools/

Buy Us A Coffee: https://www.buymeacoffee.com/coldbrewmoney

Hosts:

Atit Kothari: https://kothariatit.com/

Tapan Desai: https://tapandesai.com/

Atit’s Newsletter: https://atitkothari.substack.com/

Tapan’s Newsletter: https://tapandesai.substack.com/

Contact Us:

Twitter: https://twitter.com/coldbrewmoney

Instagram: https://www.instagram.com/coldbrewmoney/

Disclaimer:

The information in this video is general information only and should not be taken as constituting professional advice from Atit or Tapan. Atit and Tapan are not financial advisers. You should consider seeking independent legal, financial, taxation or other advice to check how the information relates to your unique circumstances. Atit or Tapan are not liable for any loss caused, whether due to negligence or otherwise arising from the use of, or reliance on, the information provided directly or indirectly, by use of this video.

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Debt Ceiling:

Warren Buffett’s Take On Debt Ceiling:

Newsroom clip: https://www.youtube.com/watch?v=Gj5-G01iRyk

#41 - US Debt & Modern Monetary Theory: https://coldbrew.money/41-us-debt-and-the-modern-monetary-theory/

Warren Buffett on Debt Ceiling: https://buffett.cnbc.com/video/2011/04/30/buffett-not-raising-the-debt-ceiling-would-be-asinine.html

#15 - Divraj Singh episode: https://coldbrew.money/15-in-conversation-with-divraj-singh-pannu-an-equity-research-analyst-about-intraday-and-long-term-investing/

Timestamps

Tapan’s trip to Edinburgh: 00:00

Atit’s Car Discussion: 03:35

What is  Debt Ceiling (Income, Expenses, Deficit, Treasury Explained): 05:45

What does the Government need to do?: 11:39

Capital Gains Tax Discussion: 18:20

Summary of the episode: 22:53

Useful links:

All Streaming Platforms for Cold Brew Money Podcast: https://coldbrew.money/links/

About Cold Brew Money: https://coldbrew.money/about/

All Cold Brew Money Episodes: https://coldbrew.money/episodes/

Cold Brew Money Tools: https://coldbrew.money/tools/

Buy Us A Coffee: https://www.buymeacoffee.com/coldbrewmoney

Hosts:

Atit Kothari: https://kothariatit.com/

Tapan Desai: https://tapandesai.com/

Atit’s Newsletter: https://atitkothari.substack.com/

Tapan’s Newsletter: https://tapandesai.substack.com/

Contact Us:

Twitter: https://twitter.com/coldbrewmoney

Instagram: https://www.instagram.com/coldbrewmoney/

Disclaimer:

The information in this video is general information only and should not be taken as constituting professional advice from Atit or Tapan. Atit and Tapan are not financial advisers. You should consider seeking independent legal, financial, taxation or other advice to check how the information relates to your unique circumstances. Atit or Tapan are not liable for any loss caused, whether due to negligence or otherwise arising from the use of, or reliance on, the information provided directly or indirectly, by use of this video.

Description:

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John Templeton was an American-British investor, banker, fund manager, and philanthropist. He created the Templeton Growth Fund which averaged 15% for 38 years. He was alive from 1912-2008 and a student of Ben Graham. He pioneered investing globally diversified mutual funds. In 2005, he wrote a brief memorandum predicting that within five years there would be financial chaos in the world

Lessons:

First of all, said Templeton, beware of emotion: “Most people get led astray by emotions in investing. They get led astray by being excessively careless and optimistic when they have big profits, and by getting excessively pessimistic and too cautious when they have big losses.”

Second, said Templeton, beware of your own ignorance, which is “probably an even bigger problem than emotion.… So many people buy something with the tiniest amount of information. They don’t really understand what it is that they’re buying.”

Third said Templeton, you should diversify broadly to protect yourself from your own fallibility.

CBM Episode on Index Funds: https://coldbrew.money/25-how-to-build-a-passive-portfolio/

Fourth, said Templeton, successful investing requires patience.

Fifth, said Templeton, the best way to find bargains is to study whichever assets have performed most dismally in the past five years, then to assess whether the cause of those woes is temporary or permanent.

Sixth said Templeton, “One of the most important things as an investor is not to chase fads.”

CBM Episode on Mental Models (Lindy Effect): https://coldbrew.money/17-more-mental-models/

Fireside Chat:

Meditation rant: 00:25

England and Scotland Rant: 02:40

Michael Burry’s Inflation Tweet: 04:00

Atit bought a car!: 05:00

Templeton’s Rule (Main Content): 09:00

About John Templeton:  09:30

#1 Beware of Emotion: 12:35

#2 Beware of your own ignorance:  18:01

#3 Diversify broadly: 22:02

#4 Be patient: 24:32

#5 Find bargains by understanding the business: 26:05

#6 Don’t chase fads: 32:57

Useful links:

All Streaming Platforms for Cold Brew Money Podcast: https://coldbrew.money/links/

Hosts:

Atit Kothari: https://kothariatit.com/

Tapan Desai: https://tapandesai.com/

Atit’s Newsletter: https://atitkothari.substack.com/

Tapan’s Newsletter: https://tapandesai.substack.com/

Contact Us:

Twitter: https://twitter.com/coldbrewmoney

Instagram: https://www.instagram.com/coldbrewmoney/

Disclaimer:

The information in this video is general information only and should not be taken as constituting professional advice from Atit or Tapan. Atit and Tapan are not financial advisers. You should consider seeking independent legal, financial, taxation or other advice to check how the information relates to your unique circumstances. Atit or Tapan are not liable for any loss caused, whether due to negligence or otherwise arising from the use of, or reliance on, the information provided directly or indirectly, by use of this video.

Description:

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Previous Episode - How To Buy A House: https://coldbrew.money/7-how-to-buy-a-house/

We talk to Jinesh Mehta who is a first-time homeowner for the past year. We did an episode with Jinesh when had just bought the house in the US around a year ago which is linked above.

After one year of owning a house, we discuss with him what are the lessons learned and things that a first-time new homeowner should know.

We talk about

Jinesh on LinkedIn: https://www.linkedin.com/in/mehtajinesh/

Useful links:

All Streaming Platforms for Cold Brew Money Podcast: https://coldbrew.money/links/

Cold Brew Money Newsletter: https://coldbrew.money/newsletter/

About Cold Brew Money: https://coldbrew.money/about/

All Cold Brew Money Episodes: https://coldbrew.money/episodes/

Cold Brew Money Tools: https://coldbrew.money/tools/

Cold Brew Money Resources: https://coldbrew.money/repository/

Buy Us A Coffee: https://www.buymeacoffee.com/coldbrewmoney

Hosts:

Atit Kothari: https://kothariatit.com/

Tapan Desai: https://tapandesai.com/

Atit’s Newsletter: https://atitkothari.substack.com/

Tapan’s Newsletter: https://tapandesai.substack.com/

Contact Us:

Twitter: https://twitter.com/coldbrewmoney

Instagram: https://www.instagram.com/coldbrewmoney/

Disclaimer:

The information in this video is general information only and should not be taken as constituting professional advice from Atit or Tapan. Atit and Tapan are not financial advisers. You should consider seeking independent legal, financial, taxation or other advice to check how the information relates to your unique circumstances. Atit or Tapan are not liable for any loss caused, whether due to negligence or otherwise arising from the use of, or reliance on, the information provided directly or indirectly, by use of this video.

Notes:

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In this episode, we discuss ten personal finance rules that everyone should know.

1) Rule of 72

No. of yrs required to double your money at a given rate, divide 72 by interest rate

2) Rule of 70

Divide 70 by the current inflation rate to know how fast the value of your investment will get reduced to half its present value.

3) 4% Rule for Financial Freedom

Corpus Reqd = 25 times of your estimated Annual Expenses

CBM Episode on Retiring: https://coldbrew.money/34-how-much-you-need-to-retire-%f0%9f%a4%94/

4) 100 minus your age rule

This rule is used for asset allocation. Subtract your age from 100 to find out, how much of your portfolio should be allocated to equities.

CBM Episode on automating finances: https://coldbrew.money/4-automating-your-finances/

5) 10-5-3 Rule

One should have reasonable returns expectations post taxes

10% Rate of return - Equity/Mutual Funds

5%- Debts ( Fixed Deposits or Other Debt instruments)

3% - Savings Account

6) 50-30-20 Rule - about the allocation of income to expense

Divide your income into 50%- Needs, 30%- Wants, 20%- Savings

CBM Episode on 50-30-20 Rule: https://coldbrew.money/3-budgeting/

7) 3X Emergency Rule

Always put at least 3 times your monthly income in Emergency funds for emergencies such as loss of employment, medical emergency, etc.

8) 40% EMI Rule

Never go beyond 40% of your income into EMIs.

9) Life Insurance Rule

Always have Sum Assured as 20 times of your Annual Income. 20 X Annual Income

10) Rule for gold investment

Half of your age, allocate that much percent of your net wealth into gold.

Prerak Sheth’s Profile: https://www.linkedin.com/in/preraksheth/

Useful links:

All Streaming Platforms for Cold Brew Money Podcast: https://coldbrew.money/links/

Cold Brew Money Newsletter: https://coldbrew.money/newsletter/

About Cold Brew Money: https://coldbrew.money/about/

All Cold Brew Money Episodes: https://coldbrew.money/episodes/

Cold Brew Money Tools: https://coldbrew.money/tools/

Cold Brew Money Resources: https://coldbrew.money/repository/

Buy Us A Coffee: https://www.buymeacoffee.com/coldbrewmoney

Disclaimer:

The information in this video is general information only and should not be taken as constituting professional advice from Atit or Tapan. Atit and Tapan are not financial advisers. You should consider seeking independent legal, financial, taxation or other advice to check how the information relates to your unique circumstances. Atit or Tapan are not liable for any loss caused, whether due to negligence or otherwise arising from the use of, or reliance on, the information provided directly or indirectly, by use of this video.

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Misconception 1:

Lower priced stocks go up faster than higher-priced stocks (penny stock vs. Amazon/BRK.A/MRF)

Stock trading for $3 can double to $6 faster than a stock trading at $1000 to $2000.

Example:

Ford

Oct 2016: $11.74

Sept 2021: $12.89

BRK.A

Oct 2016: $215k

Sept 2021: $424k

Misconception 2:

Stock Splits means the stock will go up because the price per share is now lower.

Misconception 3:

IPOs always go up.

Misconception  4:

Looking at the stock price and not the market cap.

TCS price is Rs. 3800, but the market cap is 14 Lacs Crore

MRF price is Rs. 82,000, but the market  cap is 35,000 Crore

MRF is not bigger than TCS.

Misconception 5:

Mutual Funds and Individual stocks are different asset classes.

Bonus:

Stock is expensive because the share price is high. Jaguar Health at $1.16 is more expensive than Shopify at $1500 because we have to look at the underlying fundamentals of the business and not just the stock price.

Useful links:

All Streaming Platforms for Cold Brew Money Podcast: https://coldbrew.money/links/

Cold Brew Money Newsletter: https://coldbrew.money/newsletter/

About Cold Brew Money: https://coldbrew.money/about/

All Cold Brew Money Episodes: https://coldbrew.money/episodes/

Cold Brew Money Tools: https://coldbrew.money/tools/

Cold Brew Money Resources: https://coldbrew.money/repository/

Buy Us A Coffee: https://www.buymeacoffee.com/coldbrewmoney

Hosts:

Atit Kothari: https://kothariatit.com/

Tapan Desai: https://tapandesai.com/

Atit’s Newsletter: https://atitkothari.substack.com/

Tapan’s Newsletter: https://tapandesai.substack.com/

Contact Us:

Twitter: https://twitter.com/coldbrewmoney

Instagram: https://www.instagram.com/coldbrewmoney/

Disclaimer:

The information in this video is general information only and should not be taken as constituting professional advice from Atit or Tapan. Atit and Tapan are not financial advisers. You should consider seeking independent legal, financial, taxation, or other advice to check how the information relates to your unique circumstances. Atit or Tapan is not liable for any loss caused, whether due to negligence or otherwise arising from the use of, or reliance on, the information provided directly or indirectly by use of this video.

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Description:

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In this episode, we will show a method to value stocks. We will be valuing Alibaba’s stock, doing an Alibaba stock analysis,  and what should be the fair value of Alibaba.

Using Alibaba’s stock as a case study, we wanted to walk through how you value a stock or a business to find it’s intrinsic value (or fair value or sticker price).

We will use Phil Town’s Rule #1 Investing method to value a stock. This book is a great read for anyone starting their investing journey. Linked below.

As such, using Rule #1 Investing we will value Alibaba’s stock price currently in August 2021.

Phil Town’s Rule #1 Investor: https://www.amazon.com/Rule-Strategy-Successful-Investing-Minutes-ebook/dp/B003IQ16EC/ref=sr_1_2?crid=JE9Z5A9W1NW5&dchild=1&keywords=phil+town+rule+1+investing&qid=1629891249&sprefix=phil+town+rule%2Caps%2C302&sr=8-2

Cold Brew Money - DCF Calculator -

https://coldbrew.money/dcf-calculator/

Rule One Investing - Calculators - https://www.ruleoneinvesting.com/investment-calculators/

Useful links:

All Streaming Platforms for Cold Brew Money Podcast: https://coldbrew.money/links/

Cold Brew Money Newsletter: https://coldbrew.money/newsletter/

About Cold Brew Money: https://coldbrew.money/about/

All Cold Brew Money Episodes: https://coldbrew.money/episodes/

Cold Brew Money Tools: https://coldbrew.money/tools/

Cold Brew Money Resources: https://coldbrew.money/repository/

Buy Us A Coffee: https://www.buymeacoffee.com/coldbrewmoney

Hosts:

Atit Kothari: https://kothariatit.com/

Tapan Desai: https://tapandesai.com/

Atit’s Newsletter: https://atitkothari.substack.com/

Tapan’s Newsletter: https://tapandesai.substack.com/

Contact Us:

Twitter: https://twitter.com/coldbrewmoney

Instagram: https://www.instagram.com/coldbrewmoney/

Disclaimer:

The information in this video is general information only and should not be taken as constituting professional advice from Atit or Tapan. Atit and Tapan are not financial advisers. You should consider seeking independent legal, financial, taxation or other advice to check how the information relates to your unique circumstances. Atit or Tapan are not liable for any loss caused, whether due to negligence or otherwise arising from the use of, or reliance on, the information provided directly or indirectly, by use of this video.