5 ways finance professionals are like football players

This Sunday, France won the 2018 world cup in an uncharacteristically high-scoring final against Croatia. The 6 goals scored in this final equal the total goals in the last 4 world cup finals before this. One other standout about the final was there weren’t many fouls. This got me thinking. Going by the time they spend lying on the ground clutching some part of their body, football players seem to get seriously injured a lot more than other sportspersons. Why is that? Logically, one (or more) of three reasons must apply as the cause of frequent injuries in football: Football

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Let’s talk investing with Shravan Sreenivasula

This is the next post in the ‘Let’s talk investing‘ series. In this series, I write about my conversations with investment practitioners, people with real-world investment decision-making experience. My objective in these conversations is to understand their investment philosophy and process, to demystify, at least to some extent, what they do, and to walk away with some thought-starters to help all of us become better investors. Note: These conversations do not offer advice on specific stocks or investment products In one of his customary brilliant posts, Morgan Housel writes “Your personal experiences make up maybe 0.00000001% of what’s happened in

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What did they not tell us about long-term investing

This post was first published on capitalmind.in A picture is worth a thousand words No pain, No gain Money can’t buy happiness   Or the more contemporary: Privacy is a myth If you’re not paying for it, you are the product They are insightful phrases, originally by wise and often witty people. They convey one powerful idea in a short statement that would take most people pages to describe. Just that they have been used so often in literature and conversation as to have no more insight to offer. A test for whether something someone says is a truism is,

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How Indian investors can invest in foreign equities

Why Indian investors should (also) look overseas Pop quiz: What is notable about these names? ICBC China Construction Bank Agricultural Bank of China Bank of China Ping An Insurance Group No points for saying they are all Chinese companies. Here is another set of names as a clue: JP Morgan Chase Berkshire Hathaway Bank of America Wells Fargo Apple These are more recognisable American companies. What could they have in common with the first set of companies? More than might be intuitive: The 10 companies mentioned above are the top 10 largest publicly-traded companies in the world. In fact, three

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Let’s talk investing with Raunak Onkar

This is the next post in the ‘Let’s talk investing‘ series. In this series, I write about my conversations with investment practitioners, people with real-world investment decision-making experience. My objective in these conversations is to understand their investment philosophy and process, to demystify, at least to some extent, what they do, and to walk away with some thought-starters to help all of us become better investors. Note: These conversations are not meant to offer advice on specific stocks There are over 35 Asset Management Companies (AMCs) in India. The typical AMC offers between 5 and 25 open-ended equity mutual funds

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Nobody knows Anything

Markets have been falling across the board. Some indices more than others. Auditor resignations, Additional Surveillance Measures, Trade wars, Oil prices, the list goes on… The live tracker of stock recommendations for 2018 by the major research and fund houses is down 12% for the year, with 72% of recommendations in the red. There is a general sense of “Oh crap!” about all that’s happening. It’s like that scene from ‘The Matrix Reloaded’ when Neo (the market) battles hundreds of Agent Smiths and they just keep coming and overwhelm Neo. via GIPHY Times like these, it’s natural to look for

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Does sector-picking trump stock-picking?

What do Agrochemicals, Food Products and Household Appliances have in common? What do Telecom Services, Oil Exploration & Production and Electric Utilities have in common? The first set is three of the best performing sectors in India in terms of stock market returns over the last ten years. The second set, you guessed it, is three of the worst performing sectors for stock market investors. Chart shows the top 10 best and worst performing sectors in India in terms of investor returns from 2008 to 2018 Note that cumulative returns here mean median of CAGR returns within each sector Does this

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Bharat 22 ETF FFO – Should you Invest?

Bharat 22 ETF opened its FFO (Further Fund Offer) starting June 19th, 2018 for anchor investors followed by other investors from June 20th to 22nd. link Wait, Back up a little. ETF? Bharat22? FFO? And most importantly, should you invest? Exchange Traded Funds and how they differ from Mutual Funds ETFs or Exchange Traded Funds are baskets of securities traded real-time on exchanges, just like individual stocks. They differ from mutual funds in two key ways: Structure: An investor buying ETF units is usually buying pre-built blocks of shares created by the asset manager or from other investors. With a mutual fund, the

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Curate or Create?

Should you curate or create? twitter is a great medium for discovery of valuable resources. Someone I follow retweets something that leads me to discover high-value content I did not know existed. The best use-cases for twitter are as a knowledge resource and newsfeed in that order. For a consumer, this ecosystem needs creators, those who develop original content, and curators, those who enable you to discover great content. Most social media presence can be classified into one or the other bucket. Both are of tremendous value to consumers, with stark differences. I’m writing from experience of financial twitter but am comfortable guessing it

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Let’s talk investing with Gautam Chhugani

This is the first post in a new series I’m calling the ‘let’s talk investing‘ series. In this series, I’ll write about my conversations with investment practitioners, people who have real-world experience in the field of investment decision-making. My objective in these conversations is to understand their investment philosophy and process, to demystify, at least to some extent, what they do, and to walk away with some thought-starters to help all of us become better investors. Listen to any investment legend speak about what they think works in the markets. One of the recurring themes you will find is the

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