SAGE OF OMAHA

WARREN BUFFETT

VS

MUTUAL FUNDS
ACTIVE VS PASSIVE FUNDS

WARREN BUFFETT

School of Intrinsic Compounding

 DISCLAIMER:
The content of this presentation is only for the purpose of
education and not to be construed as an investment advice.
Please consult your financial advisor before acting on it.
Registration Status: We are not SEBI Registered Advisors
We are not SEBI registered investment advisors. This video is
only meant for education purpose and nothing constitutes
an investment advice. We are only into providing education
services. We Own the stock.

School of Intrinsic Compounding

 ACTIVE INVESTING VS PASSIVE INVESTING

A fund manager chooses the

stocks actively

ACTIVE Expense ratios are higher due

to high expenses

INVESTNG Effort is to beat the

benchmark returns over the
long run
If done well can be value-
adding

School of Intrinsic Compounding

 ACTIVE INVESTING VS PASSIVE INVESTING

Dumb money ceases to be

dumb when it accepts its
limitations.

PASSIVE Passive investing means

buying the market.

INVESTNG Due to lower costs: expense

ratios are low

Churn is low and a know-

nothing investor need not
worry about. the performance
of the fund manager.

School of Intrinsic Compounding

FUNDS OUTPERFORMED
BY THE INDEX

S C HOOL OF I NT RI NS I C C OMP OUNDI NG

S C HOOL OF I NT RI NS I C C OMP OUNDI NG
 ETFs VS INDEX FUNDS

ETF's are traded on the exchanges, whereas index

funds are like mutual funds, which have a Net
Asset Value.
In Index funds, minimum amount that can be

ETFs invested is Rs500. In ETF's, you can even buy 1 unit.

No Liquidity risk in Index Funds. ETF's have the

vs
element of liquidity risk
You can do automatic SIP in index funds vs
manually buying every month in Index Funds.

INDEX FUNDS Index funds can be bought from mutual fund

platforms or directly from AMC's application.

ETF's are bought on exchanges, You need a

trading and a demat account for this.
In Index funds expense ratios are higher than
ETF's.

School of Intrinsic Compounding

 MORTALITY IN SENSEX
Asian Cables (Not in Sensex anymore)
Ballarpur Industries (Not in Sensex Anymore)
Ceat Ltd (Not in Sensex Anymore)
Century Textiles (not in Sensex anymore)
Crompton Greaves (not in Sensex anymore)
Glaxo Smithkline (not in Sensex anymore)
Grasim (not in Sensex anymore)
GSFC (not in Sensex anymore)
Hindalco (Sensex stock in 2014)
Hindustan Motors (not in Sensex anymore)
HLL (Sensex stock in 2014)
L&T (Sensex stock in 2014)
M&M (Sensex stock in 2014)
Tata Steel (Sensex stock in 2014)
Tata Power (Sensex stock in 2014)
School of Intrinsic Compounding
 "Index funds eliminate the
risks of individual
stocks,market sectors,and
manager selection.Only
market risk remains."
-John Bogle

S C HOOL OF I NT RI NS I C C OMP OUNDI NG

750

658
603

500
455
405 413 394 423 400 391
369
348
315
261 251 247
250 236
161 184
131
84 75 73 78 92
71

0
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 TTM

School of Intrinsic Compounding

School of Intrinsic Compounding
 REASONS FOR ANALYSING
REAL ESTATE

AFFORDABILITY HOME LOAN

INDEX INTEREST RATES
6-6.5%

SALARY HIKES: DEMAND FOR

15% IN Q1FY22 MORE HOUSING

School of Intrinsic Compounding

SEEKING WISDOM IN THE INDIAN STOCK MARKET

School of Intrinsic Compounding
 INVESTING MADE SIMPLE

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STATEMENT ANALYSIS CASE STUDIES BASED SCENARIOS

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FORENSIC ANALYSIS ON MOATS FRAMEWORKS

School of Intrinsic Compounding
 INVESTING MADE SIMPLE

SOIC BANKING SOIC CHEMICAL SOIC PLATFORM SOIC GENERAL & LIFE
SECTOR WEBINAR SECTOR WEBINAR BUSINESS WEBINAR INSURANCE SECTOR
WEBINAR

SOIC API SOIC SHRIMP SOIC MAIZE

SECTOR WEBINAR INDUSTRY WEBINAR INDUSTRY WEBINAR

School of Intrinsic Compounding
SEEKING WISDOM IN THE INDIAN STOCK MARKET

School of Intrinsic Compounding
40 + CLASSES
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