Some stuff I am reading today morning:
Nifty Corporate Earnings Analysis Q4|2016 (Sana Securities)
How much dumb luck it takes to become a Billionaire (Marketwatch)
Liquidity,Spread and ETF (Prashanth)
Edelweiss’s Midcap Marvels (ET)
Monsoon may arrive early this year (Mint)
Most large cap funds give 1 year negative returns (BS)
Gold:The Charts don’t lie (DR)
Oil Prices:The next 25 years (Climateer)
Combating old age (Subramoney)
Rahul Gandhi emerges as threat to Modi (Bloomberg)
@alphaideas as my ex boss used to say-ICICI is nothing but SBI with a tie😃
— Exhausted Volcanoe (@XhaustedVolcano) May 12, 2016
Source:John Kemp
Some stuff I am reading today morning:
India has a new law on bankruptcy (Mint)
End son-in-law treatment for FIIs (Rakesh Jhunjhunwala)
Parag Milk IPO sails through (BS)
Hong Kong property market in a ‘free fall’ (Bloomberg)
Technicals: Bank Charts (Nooresh)
Why God sent financial advisors into the world (TRB)
Jeremy Grantham’s latest Quarterly Letter (GMO)
Bubble Indemnity (NYTimes)
Donald Trump wants to default on US debt (Bill Bonner)
The sweet simplicity of ‘core explore’ (Alpha Baskets)
Value has always been a risky strategy, particularly for those trying to run an investment business.
The drivers of mean reversion are not hugely powerful at any given time, meaning asset prices and even the underlying fundamentals can move in unexpected ways for disappointingly long periods. It is a little glib to say that without this risk, it would be difficult for asset prices to get meaningfully out of line in the first place, but the reality is that the only way you can get really exciting opportunities for mean reversion is to have misvalued assets become even more misvalued before they revert to fair value.
This is the catch-22 of value-driven investing. Your best opportunities will almost always come just at the time your clients are least interested in hearing from you, and might possibly come at the times when you are most likely to be doubting yourself.-wrote Jeremy Grantham