You can value an asset, based upon its fundamentals (cash flows, growth and risk) or price it, based upon what others are paying for similar assets, and the two can yield different numbers.
In public investing, I have argued that this plays out in whether you choose to play the value game (invest in assets where the price < value and hope that the market corrects) or the pricing game (where you trade assets, buying at a lower price and hoping to sell at a higher).
–wrote Aswath Damodaran
Some stuff I am reading today morning:
RBI begins new era under Urjit Patel (Quint)
10 Year SIPs down to Single Digit Returns (CapitalMind)
Market Cap of BSE Listed Companies at record high (FE)
The rise of India’s neo middle class (Mint)
Rakesh Jhunjhunwala’s 5000 Crore Charity Pledge (MoneyControl)
Research Report: Auto Sector (Motilal Oswal)
How HDFC Life is misguiding investors (Basu Nivesh)
Financial Markets have become a Vegas Casino (Bill Gross)
William Bernstein’s Investing Approach (AAII)
Deutsche Bank’s troubles touch a nationalist nerve (Bloomberg)
Hat Tip: Safir
It is very rare to see a Promoter vote against his own Company’s Board resolutions.
This astonishing sighting happened in the case of Jyoti Resins & Adhesives Ltd.
On 29 Aug,2016, the Board recommended a stock split of the shares from a FV of Rs.10 per share to FV of Rs.1 per share
However in the AGM held on 30 Sept,2016, the Promoters voted against the resolution thereby blocking it.
Hmm…maybe such resolutions should have waited till the Shraadh period got over !
When I started my career, bank deposits used to give 16-18 percent.
Then it fell to 13-15 percent, thereafter it fell to 9-10 percent.
Today they are available at 7-8 percent.
I have no doubt that 3-5 years down the line, bank fixed deposit rates could be 4-5 percent.
But will you be happy with 4-5 percent returns?
-said Nilesh Shah,MD Kotak Mahindra AMC