00 Practice Lab

Chapters covered: 28-41 | Focus: Margin of safety, intrinsic value, contrarian timing, QARP

Use this lab after reading the chapters. Work on paper, Excel, or Screener.in before checking answers.

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Visual Learning

Practical Examples (Indian Market)

Example A - Apply the Core Formula

Pick any NSE-listed company from this part's topic (Graham, MOS, DCF, value traps, Mr. Market). Pull latest annual report or Screener data and compute the main ratio/formula from each chapter. Build a one-page cheat sheet.

Example B - Good vs Bad Comparison

Scenario: You have Rs. 2 lakh to deploy. Using only concepts from Part 04, would you buy at full size, use 3 tranches, or wait in cash? Write 3 bullets defending your choice.

Mini Case Study

Company: Choose one Indian listed firm relevant to this part.

1. Thesis - 3 sentences: why business is good or bad
2. Numbers - 5 metrics from this part
3. Verdict - Buy / Hold / Avoid / Watchlist
4. Invalidation - 2 events that break your thesis

Practice Questions — Chapter Drills

Complete after reading each chapter's Practice Questions. Open the chapter Answer Key to verify.

• Ch 28 Benjamin Graham: Benjamin Graham — what is the core message of this chapter in one sentence?
• Ch 29 Margin of Safety: Margin of Safety — what is the core message of this chapter in one sentence?
• Ch 30 Graham Number Formula: Graham Number — what is the core message of this chapter in one sentence?
• Ch 31 Intrinsic Value: Intrinsic Value — what is the core message of this chapter in one sentence?
• Ch 32 Value Trap Recognition: Value Trap — what is the core message of this chapter in one sentence?
• Ch 33 DCF Valuation: DCF Valuation — what is the core message of this chapter in one sentence?
• Ch 34 Contrarian Investing: Contrarian Investing — what is the core message of this chapter in one sentence?
• Ch 35 Capital Allocation: Capital Allocation — what is the core message of this chapter in one sentence?
• Ch 36 Circle of Competence: Circle of Competence — what is the core message of this chapter in one sentence?
• Ch 37 Mr. Market: IV Rs. 800, price Rs. 560 — Margin of Safety?
• Ch 38 Quality at Fair Price: Quality at a Fair Price — what is the core message of this chapter in one sentence?
• Ch 39 Market Cycles: Market Cycles — what is the core message of this chapter in one sentence?

+ 2 more chapters — use chapter Practice Questions + Answer Key.

Answer Key (Lab)

Self-Assessment Checklist

• Completed at least 3 calculations on real Indian companies
• Studied the diagram above without notes
• Can explain this part in 5 minutes to a friend
• Found 1 red flag in the wild using these tools
• Completed FAQ Drill (3+ answers without peeking)
• Updated investment journal with one entry

FAQ {#faq}

Use this section after reading chapter FAQs. Try answering without looking, then verify against the linked chapter.

Lab Workflow

Q: Practice lab — before or after reading chapters?

A: After — read the chapter + chapter FAQ first, try exercises without the answer key, then verify here.

Q: Is Screener.in enough, or is the annual report required?

A: For lab drills, Screener/Trendlyne is the start point; final verification must come from the consolidated annual report — CFA discipline.

Q: How do I score the Part 04 FAQ Drill?

A: 6+ accurate out of 8 drills = ready for the next part; 4–5 = re-read weak chapters; <4 = repeat the lab + FAQ index.

Q: What is the difference between Chapter FAQ and Lab FAQ?

A: Chapter FAQ = concept clarity (5 Q per chapter); Lab FAQ = synthesis across Part 04 (28-41).

Chapter FAQ Quick Index

| Ch | Chapter | Top FAQ Question | |:--:|---------|------------------| | 28 | Benjamin Graham — Defensive and Enterprising Fr… | What should I check alongside Benjamin Graham screening? | | 29 | Margin of Safety — Price vs Intrinsic Value Buffer | What should I check alongside Margin of Safety screening? | | 30 | Graham Number Formula — Fair Value Ceiling | What should I check alongside Graham Number screening? | | 31 | Intrinsic Value — DCF, Graham, and Asset Methods | What should I check alongside Intrinsic Value screening? | | 32 | Value Trap Recognition — Cheap but Broken | What should I check alongside Value Trap Recognition screening? | | 33 | DCF Valuation — Cash Flow to Intrinsic Value | What should I check alongside DCF Valuation screening? | | 34 | Contrarian Investing — Fear, Crowd, and Discipline | What should I check alongside Contrarian Investing screening? | | 35 | Capital Allocation — Management Quality Signal | What should I check alongside Capital Allocation screening? | | 36 | Circle of Competence — Stay Inside What You Know | What should I check alongside Circle of Competence screening? | | 37 | Mr. Market — Price vs Value Behaviour | What should I check alongside Mr. Market analysis? | | 38 | Quality at Fair Price — QARP Framework | What should I check alongside Quality at a Fair Price screening? | | 39 | Market Cycles — Euphoria, Despair, and Opportunity | What should I check alongside Market Cycles analysis? | | 40 | Value Trap Deep Dive — 5-Point Checklist | What should I check alongside Value Trap Analysis screening? | | 41 | Special Situations — Spin-offs and Restructuring | What should I check alongside Special Situations Investing screening? |

FAQ Drill — Test Yourself

Answer in 2–3 complete sentences in English, then open the chapter FAQ link to check.

• Ch 28: What should I check alongside Benjamin Graham screening?
• Ch 29: What should I check alongside Margin of Safety screening?
• Ch 30: What should I check alongside Graham Number screening?
• Ch 31: What should I check alongside Intrinsic Value screening?
• Ch 32: What should I check alongside Value Trap Recognition screening?
• Ch 33: What should I check alongside DCF Valuation screening?
• Ch 34: What should I check alongside Contrarian Investing screening?
• Ch 35: What should I check alongside Capital Allocation screening?
• + 6 more in Chapter FAQ Quick Index

FAQ Answer Key (Lab)

Go Deeper

Disclaimer: Educational content only. Not investment advice.