Behavioral Finance

April 30, 2026

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Return on Capital Employed (RoCE): The Single Most Important Profitability Metric for Indian Value Investors

Buffett calls RoCE the single most important number in business analysis. This educational deep-dive explains the formula, the Indian thresholds, the five common traps, and applies it to Titan Biotech FY25's audited markers.

April 30, 2026

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Second-Level Thinking: Howard Marks’s First-Chapter Discipline for Indian Value Investors

Howard Marks's most important idea: investing edge is built by going beyond the surface reaction. A practical three-habit discipline, illustrated with Titan Biotech's FY25 audited numbers.

April 29, 2026

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Representativeness Heuristic: Why Indian Investors Confuse “Looks Like the Next Multibagger” with Probability

The representativeness heuristic — Kahneman & Tversky's 1972 framework — explains why Indian retail investors keep paying for stocks that resemble past multibaggers but don't share the underlying base-rate process markers. Titan Biotech FY25 illustrates the opposite — process over pattern.

April 29, 2026

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Capex-to-Depreciation Ratio: The 60-Second Reinvestment-Discipline Filter Every Indian Value Investor Must Master

The Capex-to-Depreciation Ratio is the cleanest 60-second filter for whether a business is genuinely reinvesting (above 1.0x) or quietly harvesting (below 1.0x). Titan Biotech FY25 audited numbers — ~Rs.11 Cr CWIP, ~Rs.57 Cr gross block, ~7% depreciation/gross block, ~103% CFO/Operating Profit and only ~Rs.3 Cr total borrowings — illustrate disciplined, internally funded reinvestment. Educational illustration; not a buy/sell recommendation.