Author: Raoji

Categories
Links

Linkfest: September 16,2016

Some stuff I am reading today morning:

Two mega trends for next 10 years (Ravi Dharamshi)

Why Bollywood’s investment model is not working (Mint)

NMDC,MOIL’s buyback offers open on Sept 19 (BL)

An investor’s guide to the insurance sector (Quint)

If you are buying, who’s selling? (Irrelevant Investor)

My 5 Worst Financial Mistakes (RetireBy40)

Martingales and Markets (Pension Partners)

Investing Cage Fight:Real Estate Vs Blogging (Financial Samurai)

Wall Street’s insatiable lust for data (Climateer)

Oh…the investment mistakes I made (Backland)

Categories
Tweets

Paradox

Categories
Excerpts

Naren on Buying Cyclicals

Many of the commodity-based sectors see cyclical trends as can be seen in metals, oil, shipping, sugar, commercial vehicles, capital goods etc.

The point to remember while investing in these pockets is that there will be times when these companies will do very badly, which should be the ideal time to buy, and there will be times when these companies do very well, which are times to sell.

The key understanding here is the best time to buy a cyclical stock is when their share price is low and not when their earnings are high.

For example, when sugar prices are at their bottom, sugar stocks will be at the bottom, but their valuation in terms of price to earnings, will be very costly.

So it is important to buy cyclicals based on share prices rather than earnings.

–said S Naren,CIO,ICICI Prudential Asset Management

Categories
Cartoon

Why the market went down

cz_u4nhuuaaqmjv

Categories
Links

Linkfest: September 15,2016

Some stuff I am reading today morning:

Is HDFC Mutual Fund screwing its investors? (Vipin)

India lays foundation for a Fintech revolution (Reuters)

Is Infosys facing a leadership crisis? (Mint)

Stock investing is not only about buying the right stock (S Naren)

Oyo Rooms loses around 47 Cr per month (FE)

Soured DoCoMo deal tests India’s investment appeal (Bloomberg)

Investing in an IPO?Go with the institutions (BL)

My lessons from Mutual Fund investing (FreeFinCal)

The John Bogle expected return formula (CS)

3 Lessons from Buffett’s bet against hedge funds (Morningstar)