Source: IDBI Capital Research
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Top Buys & Sells by MFs in December 2017
Source: IDBI Capital Research
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Individual Investors have the Edge
Individual investors have an edge over financial professionals because you don’t have to prove how smart you are to others. You don’t have to manage other peoples emotions and timeframes. All you have to do is cut out the noise and focus on making a few good decisions per year.
— Ian Cassel (@iancassel) January 13, 2018
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Chart: Top Marginal Tax Rate in India
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Linkfest: January 15,2018
Some stuff I am reading today morning:
Learnings from 2017 and this bull market rally (Safir Anand)
How Premji Invest evolved into a top Investment Co (ET)
Interview with Zerodha co-founder,Nikhil Kamath (MC)
Analysis: Bharat Rasayan Ltd (Dr. Vijay Malik)
Tax free 20L Gratuity may become a reality (BS)
The thrill of uncertainty (Morgan Housel)
Here’s how a bond market starts (Credit Writedown)
Why this policy holder lost his insurance claim case (Rediff)
Tragic retirement cases (Subramoney)
Getting paid what you deserve (Seth Godin)
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Some learnings from an Investor Meet
Had attended an Investor Meet yesterday.
Some learnings from the Meet:
- Look for headwinds and tailwinds…with the right tailwind, the entire sector can give multi-fold returns.Many sectors in India have given 25x-100x returns with the right tailwinds.On the other hand,when there are significant head-winds,wealth destruction happens
- Look at promoter hunger.“We are in the markets to make money, not give integrity certificates”.The perception of the Promoter being a chor or not changes with the share price.
- Look at opportunity size.If the size of the opportunity is big,a hungry promoter with good execution skills can make you buckets of money.On the other hand, if the market size itself is small, then its difficult for earnings and hence valuations to grow.
- “Chalane Wale, Chal Base” – don’t buy a stock, just because a big name/broker is buying it.Don’t have false expectations that these big names will make the stock price go up
- Watch out for story tellers-Some managements are master story tellers…watch their quarterly results carefully.If they don’t walk the talk, then exit.
- Watch out for the word “next”. If someone says, this is the next TCS, the next Page,the next L&T , the next….then a story is being told to you
- There are two types of people in the markets-“Jo paise gavake rota hain, jo paisa jeetke rota hain” i.e. investors have two regrets-regret of losses and the regret of booking profits too early.Always try to be in the second category. Leave money on the table, its impossible to get the very last dime
- Look for “insight information, not inside information”.More money has been lost on trading on inside information than anything else.On the other hand, after talking to management,trade etc, you get insights on the industry,sector,competition,emerging technologies etc, that can be very valuable
- “Be a shana, don’t be a dedh shana” -Be smart, but don’t be over smart.Avoid leverage,avoid selling quality to go for optically cheap stocks etc
- It’s an exciting time to be in India.As India grows from a $2.5 Trillion economy currently to $10 Trillion in next 20 years, more wealth will be created in India in the next 20 years as was created in the last 5000 years.Think about it.