Hat Tip: Haresh Nagpal
Hat Tip: Haresh Nagpal
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Linkfest: August 10,2016
Some stuff I am reading today morning:
Raghuram Rajan is not done yet (Mint)
HDFC Life,Max merger to create life insurance behemoth (ET)
GST will push these taxes into oblivion (Money Control)
3 Things to note about asset allocation (Morningstar)
Moving the investment goalposts (Irrelevant Investor)
How to read financial news (CFA Institute)
Invest like a Billionaire,if you are one (Barry)
Marc Faber’s 50% Stock Crash call (However…) (Big Picture)
The price of prestige (Fortune Financial)
Trump…the bad,bad businessman (NYTimes)
We’ve had two 50% market drops in the last 15 years. Why can’t we have a third? And if it can drop 50%, why can’t it drop 75%? It can and it will ultimately. But in the meantime, all that money printing could still drive stocks higher. And central banks might take even more desperate measures to keep the game going.
The Japanese central bank is already buying stocks. It’s already bought all the government bonds. The European Central Bank is running out of bonds and government bonds to buy. Now it’s starting to buy corporate bonds. Why can’t that happen in America? Why can’t the Federal Reserve buy these assets?
When Bernanke was head of the Fed he said, “If we have to, we’ll buy anything. We’ll buy shares of gold mines.” If the Central Banks all over the world buy stocks, there’s really no top.-said Jim Rogers
Raamdeo Agrawal’s bet on Hero MotoCorp (then Hero Honda) is market legend. In 1995, he invested around Rs 10 lakh in the shares of the two-wheeler manufacturer at Rs 30 apiece, and held on to them for the next 20 years, till the share price rose to Rs 2,600 apiece. When he sold out in 2015, his holding in Hero MotoCorp was earning him Rs 3-4 crore annually in dividend income alone. What makes this all the more noteworthy is that the rise was peppered with many dull periods.
Between March 2000 and March 2003, for instance, the stock did not budge from around Rs 225 levels. It was the dotcom boom era and non-IT stocks were undervalued. Agrawal stayed invested because of his faith in the Munjals, the promoters of Hero MotoCorp.
Again, in March 2011, many investors saw little value in the Hero stock after it parted ways with Honda Motor Company, ending a 20-year joint venture with the Japanese company. Agrawal was the contrarian. He knew Hero MotoCorp would lose its market share a tad, but he was sure the company would remain the leader in the two-wheeler segment. His confidence was validated: Between 2011 and 2015, the stock moved up by 13 percent annually. Though he has sold Hero MotoCorp from his personal portfolio, it is still a part of Motilal Oswal’s PMS schemes.-from Forbes
The biggest failure of Indian Judicial System is in their utter denial to concede that they have become fountainhead of corruption in India.
— Yashwant Deshmukh (@YRDeshmukh) August 9, 2016