The Financial Opportunities Forum had two presentations.

The first presentation was by Mr. Parag Parikh. The topic was focus on circle of influence which are positive influences rather than focus on circle of concern.

Attitude toward the market and behavior is very important in times of volatility and turbulent market conditions.

Focus should not be on macro factors but business that one buys in the portfolio.

Second presentation was on corporate capital allocation:

Rajeev Thakkar discussed the importance of understanding corporate capital allocation when buying a business as a minority shareholder.

5 ways of allocating capital are as follows:

a) Expanding current facility and growth orientation

b) Buying a business and growing organically

c) Buying another kind of business and diversifying.

d) Divident payout e) Share buy back.

Warren Buffet believes that if there is no meaningful growth or opportunity, the management of a company should consider high dividend payout or share buyback. Buybacks can occur when stock prices are depressed. In the long run this enhances share holder value.

Point is that its important to understand the corporate capital allocation when studying a business and buying for long term i.e 5 years plus.

Rajeev Thakkar

He is the Chief Investment Officer of PPFAS Mutual Fund.

Regarded by many as a polymath, his presentations, cover diverse topics ranging from the state of the shipping industry, corporate leadership, capital allocation and individual companies like Google. His audience usually takes to him wholeheartedly, as he possesses the endearing quality of 'talking to' them and not 'talking down to' them. Apart from them, certain presentations may be made by a few of their colleagues on account of them being well versed with a specific topic.

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