Some stuff I am reading today morning:
Why India’s bad loan problem is really bad (Tamal)
IPO Review: Tejas Networks (SP Tulsian)
Time for the great PSU sell off has arrived (ET)
IPO listing time may be cut to 4 days (Mint)
Modi Govt boosts road building to 30 km/day (FE)
Jewelers to suffer GST pain (BS)
The sorry plight of the unprotected small investor (BL)
Differentiating business performance from stock performance (MC)
Technology is the new Macro (TRB)
No way out (Seth Godin)
Here are the most clicked on items this week on Alpha Ideas :
Notes from the Sohn India Conference (AI)
Gurumurthy’s reply regarding NDTV-Chidambaram scam (AI)
Top 5 Holdings from Amansa (AI)
Ajay Piramal nails it (AI)
Anilbhai to list ADAG’s jewel (AI)
Portfolio of Mohnish Pabrai in India (AI)
80-90% of developers will shut down (Rediff)
The great Indian hope trick (Mobis)
Mumbai property prices plunge upto 40% (FE)
A case for selling MFIs/SFBs (AI)
Some off beat reads for the weekend:
Rise of the Machines-who is IOT good for? (Guardian)
Hung Parliament in UK (New Statesman)
The bounty hunter of Wall Street (NYTimes)
The revenge of James Comey (New Yorker)
The rags to riches story of Kapil Sharma (YS)
Raghuram Rajan has the last laugh (Swarajya)
No one has ever made a corruption machine like this (BW)
Future of Indian Muslim Politics (Caravan)
Congress anarchy plan (Media Crooks)
The Legacy of Meesey Thimmaiah (BI)
7 Pakistani Startups (Dawn)
Coorg Diary (Outlook)
Travelogue: Exploring Alaska (TeamBHP)
Gossip: Amitabh’s ambition (Gossip Guru)
10 Best Hotel Restaurants in India (NatGeo)
Ray Dalio is the founder of BridgeWater, one of the largest hedge funds in the world
What I learnt from him: Discuss your investment ideas with smart folks and ask them to find flaws in it.
From his interview in the Book The Hedge Fund Wizards :
Most school education is a matter of following instructions-remember this; give it back; did you get the right answer?
It teaches you that mistakes are bad instead of teaching you the importance of learning from mistakes.
It doesn’t address how to deal with what you don’t know.
Anyone who has been involved in the markets knows that you can never be absolutely confident.
There is never a trade that you know you are right on. If you approach trading that way, then you will always be looking at where you might be wrong.
You don’t have a false confidence. You value what you don’t know.
In order for me to form an opinion about anything involves a higher threshold than if I were involved in some profession other than trading.
I’m so worried that I may be wrong that I work really hard at putting my ideas out in front of other people for them to shoot down and tell me where I may be wrong.
That process helps me be right.
You have to be both assertive and open-minded at the same time. The markets teach you that you have to be an independent thinker. And any time you are an independent thinker, there is a reasonable chance you are going to be wrong.
Source: CLSA Research Report
