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Word of Caution

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GuestPost

The shocking truth about the growth rate of Nifty Earnings

The guest post below has been written by Kimi. 

Kimi or Krishnaraj Venkataraman is based out of Bangalore and he would welcome comments, especially if you think he has made an error, at krishnaraj.v@kimiandpartners.in

[gview file=”https://alphaideas.in/wp-content/uploads/2015/11/AnchorErngGrwth_25112015.pdf”]

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Chart

Chart: European Bond Yields

Source:Charlie Billelo

Stunning to see Swiss Yields are negative for 10 years !

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Links

Linkfest:November 26,2015

Some stuff I am reading today morning:

Shareholders accuse NSE of trying to delay public listing (Mint)

Kalanithi Maran:Defying the odds (Forbes)

15 Nifty stocks are range bound (Nooresh)

Proxy advisories split over Suzuki’s Gujarat plant (BL)

Motilal Oswal Research:Sell Nestle (MyIris)

In land of 3500% stock returns,crashes are quickly forgotten (Bloomberg)

Indexing’s brave new world (CIO)

Most of what you learned in Econ 101 is wrong (Bloomberg)

The fallacy of “Dr.Copper” (Value Plays)

Long road maps (A VC)

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Excerpts

Dan Bunting’s 5 Rules to Buy Stocks

Dan Bunting was a stock market veteran.His 5 Rules to Buy Stocks are:

1. Look for companies where the insiders are buying lots of stock

2. Look for companies generating a lot of cash, as that is almost always the start of sustained outperformance.

3. Look for companies which have monopolies, or near monopolies, and those which manage to take out their main competitors.

4. Remember you are buying businesses, not just stocks. So pay close attention to the quality of the business, and especially the quality of the management. They make an enormous difference. Over time, Dan would say, “class shows.”

5. Look for companies in the consumer sectors — in particular, companies which have earned the trust of consumers, and which have very strong brand names. “As a rule, the closer you are to the consumer, the more money you will make,” he said. “The ultimate guarantee of profit is to possess the trust of the consumer.