The curious case of HUL and how the markets play favourites

Hindustan Unilever just posted its results for the quarter ending March 2018. A healthy 14% year-on-year increase in net profit mostly attributable to a poor base quarter. HUL stock price promptly went up from around 1504 to 1574, a 4% increase in a couple of days. It is now valued at 65 times Earnings This means, If HUL’s profits stay the same and it paid out all of it’s profits to shareholders, it would take 65 years for a shareholder to recover her current buy price. For context, the NIFTY is at 27 times earnings. Chart shows HUL Earnings and

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Markets after FY2018: Bull or Bear

FY2018 was an ok year for Indian markets. The statement seems strange given what has been happening since late January. In spite of the correction over the last two months, we still ended the year up 10%+ on both the NIFTY and the NSE 500. Not quite the blockbuster returns we saw in Jan 2018 when both indices were at 20%+ returns for the financial year and certain individual stocks were giving double-digit returns in a matter of days. Things were so good that a random selection of stocks would have done fairly well over the last year [Read this before deciding

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Bill Nygren: Value Investing Principles and Approach

Bill Nygren is a fund manager at Oakmark Funds. He is also Chief Investment Officer for U.S. Equities at Harris Associates. He’s particularly well-known for being a value investor who doesn’t fear the technology sector. This post summarises key takeaways from his talk at Google in December 2017. While he reinforces many core value investing principles, he also challenges us to think differently. The difference between gambling and investing A value investor recognizes there are different ways she can put capital at risk and the difference between gambling (negative expected value) and investing in stocks (positive expected value) Buying stocks

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