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.
We analysed over 2,000 analyst recommendations (upgrades and downgrades) made by institutional equity analysts over the last ten years for the 50 Nifty stocks. We measured the 60-day return on the stock after the recommendation to see how those analyst recommendations fared.
Here’s what we found
Instead of thinking of our chosen investment style as a fortress to be defended from attacks at all costs, maybe think of it as an idyllic picnic spot. We happened to find one on a stroll, put down our blanket, and enjoyed a leisurely lunch. We will be ready to move on because we know we can return. But for the duration we’re there, we probably won’t be sending up flares announcing its location to the world.
In the ‘Let’s talk investing‘ series, I spoke with Raunak Onkar, head of Research, and Fund Manager at PPFAS Mutual Fund. 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 … Read more
It’s that time of the year when the world’s most awaited corporate communication comes out. My guess is if we take all publicly listed companies around the world (except one), and add up the number of times their management letters get read, that number would be dwarfed by that for Berkshire Hathaway and Warren Buffett’s … Read more