Importance of Investing ONLY in good Business - Warren Buffet Video

Warren Buffett discuss about importance of investing in only good businesses. Discussion based on his own investment decisions and the valuable Lesson he learned. - Interview with Becky Quick, CNBC.



Interview Transcript: Click Here

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Corporate Actions Opportunity - Murudeshwar Ceramics Ltd Rights issue

I have been looking for opportunities based on corporate actions and this one seems to be worth mentioning.

Murudeshwar Ceramics Ltd rights issue offer.
Ratio: 1:1
Current Price: Rs. 39.35/-
Offer Price: Rs. 20.00/- (Including face value of Rs. 10/-)
Record Date: Oct/20/2010

Normally, the price is expected to fall to account for the new shares, but looking at the history and my earlier experience with rights issue, that's not the case always. So if the current price maintains after the new shares are allocated, the profit potential of is ~50%. And since the potential is high, it offers a buffer in case price falls. There is no guarantee that price will remain at Rs. 40/- level (or even near that level).

Based on IndexoMeter, I have been converting from securities to liquid assets and currently hold around 25% in cash and this might provide an opportunity to deploy some of the cash for a short period. I am planning to invest in this opportunity. Will keep you posted on how it works out.

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