Fortunes of War

In an earlier post, had discussed the consequences of Israel attacking Iran.

In most wars, the biggest beneficiary is the one who has not taken part in the war

For example, the biggest winner in the Korean War and the Vietnam War was Japan as the US military used it as a base for their operations

In the US-Afghanistan war, the biggest monetary winner was Pakistan as the NATO supply lines went thru its territory.

In the Iraq war, the biggest winner was Dubai.No wonder it saw a huge boom during that period.

So if the Iran-Israel war breaks out, the country not taking part in the war will be the biggest beneficiary.In my opinion, that country will be…Saudi Arabia.It will benefit by a weakened Iran and/or a weakened Israel and the best part will be that oil prices will remain elevated.

So its probably time to stock up on some Saudi Arabian Riyals !



The compounding machine

Today J&K Bank hit its 52 week high intraday.

I confess I have a soft corner for this company and its stock.

Why is that?Because over the years it has proved to be a tremendous compounding machine.

On Jan 1 , 2001 its closing price was 34.3.Today it closed at 895 after hitting an intraday high of 929.8.

If an investor had held onto this stock thru thick and thin, over all these years he would have had a compounded return of close to 35% per annum.

Of course the ride would not have been easy (see chart below)

But it well would have been worth it.


Hot Links:April 2, 2012

Some stuff I am reading this morning:

CBI to file chargesheet against Aurobindo Pharma MD ? (Business Line)

Why the gloom is likely to persist (Mint)

FII Withdrawal Symptoms (Business Standard)

India’s economic monsoon (FT)

SEBI Watch:Broad guidelines on algorithmic trading (SEBI)

RBI Watch:Great speech by RBI governor on globalization (RBI)

Euro was flawed at birth and should break up now (Bloomberg)

Ten most foolish things a trader can do (Newtraderu)

Keynes as an investor (WSJ)

Warren Buffett scorns gold.Bad move ! (Daily Reckoning)

Did Goldman Sachs own a prostitution website ? (Nytimes)



Horses for Courses

A great chart.


And the money spinners are…

Many times the stocks that make the most money for investors are the ones that nobody expected to do well.

Consider the best performing NSE listed stocks for the quarter Jan 2012-March 2012:

Sanwaria (Up 174%)

Goenka (Up 152%)

IVRCLInfra (Up 127%)-The open offer battle certainly helped here

Sanghvifor (Up 124%)

WockPharma (Up 117%)