Lessons in Capital Allocation and Investment Patience

This chapter explores the historical decisions made by Indian Hotels, highlighting their poor capital allocation, especially regarding the controversial acquisition of the Pierre Hotel in New York. It contrasts this with an inspiring example of long-term investment success through NASPERS' strategic investment in Tencent, showcasing the potential of patience and careful capital management. The discussion emphasizes the complexities of investment valuation, the importance of identifying genuine business opportunities, and the need for discernment in challenging market environments.