NSE has a ton of equity indices, 96 of them. Removing a bunch of the repetitive ones, we are still left with over 50. Chart below shows their CAGR since inception. All the way from 23% (Midcap150 Momentum50) to -3% (Realty). The Nifty has clocked 14% over 24 years. Worst drawdowns. Realty fell 93% from … Read more
This post was first published on capitalmind.in Last quarter, there were 484 mentions of ROCE in the filings of just the 50 Nifty companies. ROCE stands for “Return on Capital Employed.”: how well a company is generating profits from its capital. It is considered a critical part of the puzzle of finding quality businesses. ROCE … Read more
The typical Amazon product page has almost 10 elements meant to nudge us to buy the product. All businesses utilise FOMO-nudges to stand out in a crowded marketplace to sell. Investing is no different. But FOMO as a sales tool in investing looks different. As of writing this, markets have been recovering and making new highs. There will be no shortage of sales nudges implying innate brilliance and visions of quick returns. The more you understand them, the less effective the nudges become.
This post was first published on capitalmind.in An engineer, a chemist, and an economist were on a ship that capsized. They clamber onto a lifeboat with nothing but the clothes on their backs. The lifeboat just about manages to get them to a tiny deserted island before it breaks apart. Just as it goes down, … Read more
This post was originally published on capitalmind.in and is a summary of a recent paper, which is the post’s title, published by AQR in Jan 2023. It is a must-read for any investor trying to understand quantitative factor investing better. Since I hear from clients about the very myths and misconceptions tackled in this paper, … Read more
What if we picked random equal-weight portfolios in January 2007 and held them all for 16 years? How do you think they would do against the Nifty? How would their outcomes vary depending on the number of stocks each of those random portfolios held? Random portfolios mean every stock above 300 Cr in Market cap … Read more
An image search of the title of this post will tell you Warren Buffett said it, just like most profound things on investing and life. Except, he did not.
The stock does not know you own it, is, in fact, from the book: The Money Game by George Goodman, written under the illustrious pen name of Adam Smith.
This single line ‘The stock does not know you own it,” if internalised, is one of the most potent investing concepts
From sports teams we enthusiastically support, to the kind of consumers we are, our religion, and our political affiliation, we all carry around multiple identities. Things we feel deeply about and form a part of us.
But this can be a problem when it comes to investing. Here’s why, as investors, we should stay away from identities and instead examine our core investing beliefs.
This post was first published on capitalmind.in Indian markets have been making new highs lately. Naturally, the most frequent question doing the rounds is: Should you invest at market highs? The question tends to be phrased as “Isn’t it just plain dumb to be investing at market highs? Should I a) stop investing more and … Read more
So, Cathie Wood, in a recent Bloomberg interview, predicted Bitcoin will be $1 Million by 2030.
For reference, as of writing, BTC is $16.5k. So, about a 6000% increase from here.
Like with most things she says, a reaction-frenzy follows. It makes you wonder why a fund manager, down over 60% for the year, would make such an outrageous prediction. Why not a sedate $100K, which would still mean a 600% increase?
The BTC $1M prediction makes perfect sense when you unpack Ark’s marketing strategy.