Implementing Benjamin Graham's Special Situations Frameworks in Conventional Investment Strategies

Join Prof. Sanjay Bakshi in this deep dive into the world of Special Situations, a framework originally pioneered by Benjamin Graham in the legendary third edition of Security Analysis. Prof. Bakshi shares his personal evolution as an investor—from navigating the technicalities of risk arbitrage and corporate events like mergers and buybacks to applying these "event-driven" principles to modern, long-term business analysis. In this session, you will explore: The transition from being a market analyst to a business analyst. How to apply probabilistic thinking and stress tests to companies facing temporary distress. The concept of "Saraswati over Lakshmi," emphasizing the accumulation of knowledge as a permanent competitive advantage. Whether you are interested in deep value, special situations, or the psychology of investing, this talk offers a masterclass in disciplined thinking. About the Speaker: Prof. Sanjay Bakshi is a Distinguished Adjunct Professor of Finance at FLAME University and the Managing Partner at ValueQuest Capital LLP. A renowned practitioner and teacher of value investing for over 25 years, he is widely recognized for his expertise in behavioral finance and multidisciplinary thinking. He holds an M.Sc. in Economics from the London School of Economics and is a Fellow of the Institute of Chartered Accountants of India. Often referred to as the "Fundoo Professor," he is celebrated by students and the investing community for his ability to blend academic rigor with real-world investment wisdom. Date of session: Saturday, 2 August, 2025 00:00:00 - Introduction and Guest Welcome 00:02:54 - Graham’s 3rd Edition "Hunting Grounds" 00:08:39 - Defining Special Situation Events 00:10:55 - The Graham Risk-Reward Formula 00:12:06 - Masterclass in Probabilistic Thinking 00:26:53 - Realities of Arbitrage Hedging Operations 00:29:10 - Appeal of Special Situations per Benjamin Graham 00:54:00 - Learning from Buffett: Shifting from Arbitrage to Businesses 01:08:59 - Lessons from Risk Arbitrage 01:12:06 - Exploiting Short-term Market Inefficiencies 01:33:10 - Lessons from the Castrol Case 01:44:11 - Learnings from Buffett and Munger (with case studies) 02:01:12 - Anchoring to Business Fundamentals 02:02:05 - Examples from own journey 02:27:11 - Investing During the Pandemic 02:33:43 - India's microfinance industry 02:43:37 - Navigating Political and Regulatory Risks 02:53:24 - Analyst vs. Business Analyst Mindset 02:56:00 - Outcome vs Process focus 02:59:46 - Chase Knowledge not money 03:06:10 - Q&A 03:53:16 - Closing Remarks The Indian Association of Investment Professionals (IAIP), the India Society of CFA Institute, was established in Apr 2005 as an association of local investment professionals consisting of portfolio managers, security analysts, investment advisors and other financial professionals. As one of the over 160 CFA Institute member societies, the IAIP connects local CFA Institute members to a global network of investment professionals. For the continuing up-gradation of knowledge and skills of members, IAIP conducts speaker events, workshops led by leading finance professionals.