Gautam Baid
Founder and Managing Partner, Stellar Wealth Partners · 1 appearance on the record.
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investorauthorfounder@Gautam__Baid ↗LinkedIn ↗stellarwealthindia.com ↗
Gautam Baid manages long-term, fundamental value-oriented equity funds focused on Indian public markets, including the Stellar Wealth Partners India Fund. He is the author of The Joys of Compounding and The Making of a Value Investor.
31statements → 6claims → 4claims resolved → 100%fully supported → 4.06/5average certainty → 1.84/5average debate potential → ≈4.5/5argument clarity, estimated →
4 supported 0 partly supported 0 contradicted 2 not checkable as stated how the 6 claims stand · each chip opens the sources
6 assertions · 3 opinions · 20 insights · 2 disclosures · every statement was checked. The predictions and assertions are the 6 claims: statements the public record can support or contradict. 4 are resolved, and 2 name no date, number or outcome precise enough to check. Everything else (opinions, insights, what ifs, disclosures) can never be settled by the record, so it carries no assessment.
The record, in short
What the tape says about how Gautam argues and how the claims held up. Everything they said, and everything said about them, is in the tabs below.
Their most notable supported claim
Baid: Top 10 investments drove bulk of Berkshire Hathaway's returns
“So Charlie Mangal has basically very famously said that if you take away the top 10 winners from all of Berkshire Hathaway's past investments, their overall career track record would become below average. So Even in Berkshire Hathaway's case, just 10 investmen…”
Expressed certainty vs assessment result
weighted support: a fully supported claim counts one, a partly supported claim counts half. Each filled bar is clickable and opens exactly those claims; "none yet" means nothing said at that certainty level has resolved yet
How they sound: not measured why? →
We measure speaking style by listening to the audio itself, and a fair number needs at least 2,000 words from one person on tape we have measured. There is too little of Gautam Baid on measured tape to publish a rate. This says nothing about how they speak.
Everything Gautam Baid said on the Neon Show that made the record, most notable first. Filter by type, assessment or year in the ledger →
Gautam Baid: Stocks Hitting Highs in a Bear Market Lead the Next Bull Run
“New trends always emerge during the fag end of a bear market, and that is why investors should always be alert to which stocks and sectors are actually breaking out to all-time highs during a bear market, because the market itself will tell you where the next …”
Gautam Baid: A Bull Market Always Exists in Some Sector of the Indian Market
“A bull market is always going on at all points of time In some specific sectors of the Indian stock market”
Baid: Barely 1% of Indian listed companies are quality businesses
“In the Indian stock market out of the thousands of listed companies, barely one percent of them are actually quality businesses and they tend to enjoy what is known as a scarcity premium.”
Baid: Low-ROCE firms must fix returns; high-ROCE firms must scale growth
“In case of companies having low returns on capital employed, the maximum rate of change, the maximum delta, the maximum intrinsic value creation takes place when they focus on improving their return on capital employed. And in case of companies having high ret…”
Baid: Holding 25 to 30 stocks captures all diversification benefits
“The rationale for having 25 to 30 stocks holdings in each of these small cases is that this is the optimal number of holdings to maximize the risk return trade off. As per a study published in the international bestseller, a random walk down Wall Street, At 25…”
Gautam Baid: Value investing works by exploiting investors' fear of volatility
“Capitalizing on others desire to avoid volatility is what makes, makes value investing work.”
Gautam Baid: No Single Investing Strategy Works in Every Market Environment
“No single strategy works all of the time and in every kind of market. And that is why it is essential to build up one's investing arsenal to be able to hunt for value from within different areas.”
Baid: Portfolios should blend megatrends with tactical alpha bets
“So a portfolio well-made is made up of multiple mega trends, which provide long-term compounding, as well as shorter-term tactical opportunities like deep value, cyclicals, commodities, and special situations, which provide you alpha.”
Baid: Great businesses create wealth even across bull-market peaks to bear-market bottoms
“The great businesses tend to create wealth, even when measured from the bull market peak to the subsequent bear market bottom, whereas gruesome and bad businesses eventually destroy wealth across market cycles, irrespective of whether the media headlines are p…”
Baid: Low-quality businesses bid up by liquidity never recover for years after crashes
“The advantage of buying good stocks is during every single market fall, when they become cheap, they tend to find support in the form of buyers at lower levels, but the gruesome and bad businesses, which were basically just simply bid up due to easy liquidity …”
Baid: Investors do not need to be smarter than others, just more disciplined
“We don't have to be smarter than the rest. We just have to be more disciplined than the rest.”
Baid: Prudent investors must review ten years of annual reports and filings
“A prudent investor never purchases ownership in a business without conducting the necessary due diligence. You should study about the company and its competitors, both listed and unlisted from company website, company filings, information on the internet, and …”
Baid: Checklists must differ between commodity cyclicals and secular growth stocks
“The primary checklist items you look at when evaluating deep value cyclicals or commodities is very different from the primary checklist items you look at when you're evaluating high quality secular growth stocks, where the quality of business and the quality …”
Gautam Baid: Avoid Publicly Touting Stocks to Prevent Consistency Bias
“One easy way to avoid commitment and consistency bias is to avoid touting your holdings in the media or on social media or in the, on TV channels because facts and situations change in the stock market very, very quickly.”
Baid: Investors should immediately forget the purchase price paid for stocks
“The investor should immediately forget the purchase price they paid for a security after they purchased it. Otherwise this will forever affect your judgment because the price which you have paid for a stock is a sunk cost, right? It means it's meaningless. All…”
Baid: Behavioral edge is an investor's only durable remaining advantage
“The first advantage was informational, but with the advent of the internet and widespread information dissemination, the informational edge is basically gone. The second source of edge traditionally has been the analytical edge, but with more and more smart pe…”
Baid: Maximum returns come from buying capex plays during downcycles
“You want to buy these big capex plays during the industry down cycle and then patiently hold on to them till the industry upcycle is in full force. This is how you reap maximum capital appreciation, and this is how you get the big, big multi-bag returns.”
Baid initiates portfolio positions at 3% to 5% weighting
“I initiate new positions with a minimum weighting of three to five percent and subsequently average upwards if the management executes above my expectations.”
Baid: Investing success is about slugging percentage, not win rate
“Good investing is not about the batting average. It's about the slugging percentage. And this is what George Soros was referring to when he said that it's not whether you're right or wrong. That's important. What matters is how much money you make when you're …”
Baid: Top 10 investments drove bulk of Berkshire Hathaway's returns
“So Charlie Mangal has basically very famously said that if you take away the top 10 winners from all of Berkshire Hathaway's past investments, their overall career track record would become below average. So Even in Berkshire Hathaway's case, just 10 investmen…”
Baid: Culture Empowers Daily Performance Edges That Compound Far Longer Than Expected
“Culture matters to long-term investors because it empowers the company's employees to perform their daily tasks slightly better than their competitors do. And over time, these small advantages compound into much larger advantages That lasts far longer than con…”
Baid: Asset turnover improvements are superior to margin expansion
“Between margin expansion and improvement in fixed asset turns. I prefer improvement in asset turns because high margins tend to attract competition.”
Appearances (1)
| Episode | Date | Speaking time |
|---|---|---|
| The Joys of COMPOUNDING with Gautam Baid! | Feb 7, 2022 | 38m |