Hot tips to Financial Success

Friday, August 17th, 2018

If you switch on any business news channel, or look at websites like MoneyControl, you will normally be flooded by the latest hot tip or suggestions for the next “multi bagger” stock. Viewers of these channels are looking for shortcuts to make wealth and these channels readily serve up exactly what investors want to hear. […]

Death of Brands and Traditional Advertising

Thursday, August 16th, 2018

The rise of the internet and the smartphone has led to some disruptive changes to consumers and society. Slowly, but surely these innovations are changing the old ways of doing things and having a major impact on businesses and the economy. One of the major trends that I would like to explore is the role […]

Narrative or Earnings

Wednesday, August 15th, 2018

Josh Brown had a comment on a WSJ article which talked about how, since 2011, you could have focused either on corporate earnings growth or the negative commentary around FED tapering. If you had focused on the FED narrative, you would have missed out on the massive 161 per cent rally in the S&P 500 […]

Private vs. Public

Tuesday, August 14th, 2018

Professor Damodaran has a note on Elon Musk’s announcement of privatising Tesla. Even though the saga continues, I thought it was more interesting to focus on the Professor’s comparison of private businesses with publicly traded firms.   To summarise, we can look at the following table from his post:     Do check out this […]

Currency Wars: Turkish edition

Monday, August 13th, 2018

The Turkish Lira has been in the spotlight over the last few days as escalating tensions with the US have led to large depreciation of its currency. #Lira dethrones Argentine Peso as this year’s worst performing EM currency.#Euro falls on #Turkey contagion risks — Fercan Yalinkilic (@FercanY) August 10, 2018 According to The Economist, […]

Quarterly Equity Valuations: August 2018

Friday, August 10th, 2018

We take a look at equity valuations and find that they have moved into even more expensive territory. We use data from the NSE website starting from when it is available in January 1999 to look at the P/E Ratio, P/B ratio and the dividend yield of the index and compare it to past history.   Price to Earnings (P/E) […]

Zero Cost Funds

Thursday, August 9th, 2018

This is an interesting development: Fidelity has launched two zero cost mutual funds. The global trend is toward lower expense ratios and fee structures as investors shift more aggressively toward passive management. The idea behind these zero cost funds is that Fidelity can probably use these funds as loss leaders to get more clients and […]

The rise of retail banking

Wednesday, August 8th, 2018

Nice piece by Vivek Kaul in the Mint paper on how Indian banks are changing the focus of their business. It talks about how, without any regulatory push, Indian banks are increasingly moving toward narrow banking with a focus on the retail segment. This is of course a direct result of the NPA mess that […]

Coffee Can investing with S Naren

Tuesday, August 7th, 2018

Nice interview of S Naren by Saurabh Mukherjea on Moneycontrol in their new Coffee Can Investing Series. A few excerpts from the video: On the importance of a support system to help improve your investment calls: So, what I guess Mr. Kamal Chaddha did was he got together a set of people like alcoholics anonymous. These […]

Linkfest – 86

Saturday, August 4th, 2018

I come across a lot of good articles from across the web. This linkfest will help you cut out the noise and focus on what was important in the last few weeks:   Indian Economy: Firms paying out more in dividends – Livemint The grim real estate market – Livemint Core inflation inching up – Capitalmind Shift in […]