The most profitable industries in India in 2019

“Why so glum? It’s friday afternoon for crying out loud” (A senior executive to his subordinate) Subordinate: “See this pile of resumes? All applicants for that open role on our team. I’ll spend the best part of the weekend shortlisting this lot.” Senior Exec: (picks up pile, splits into two. Tosses one half into the trash can) Shocked Subordinate: “What about finding the best person for the role?!” Senior Exec: “Who needs unlucky people on the team. Enjoy your weekend.” Think of the pile as companies you could invest in. Sure you could comb through each one to find the

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Mercedes or Honda?

Two recent first-hand incidents got me to post this eccentric poll on twitter yesterday. You’re buying a spanking new car. You only have two options. Both involve cars dressed up to look different (only on the outside.) Option 1. Mercedes S-Class. Looks like Honda Civic Option 2. Honda Civic. Looks like Mercedes S-Class Which do you choose? — Calm Investor (@CalmInvestor) July 19, 2019 The two incidents: One. I and my wife had taken our 1-year old for his first haircut. My son, sitting in his mother’s lap, looks around happily, smiling at the strangers trying to distract him, as

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Introducing Calm Investor smallcases

Introducing Calm Investor smallcases allowing for one-click implementations and rebalancing. In August last year, I wrote about my strategy of building a portfolio constructed on price momentum principles as a satellite to my core value portfolio. Almost out of academic curiosity, I offered a paid subscription to the portfolio. The concept was simple, and the plan was to set up a google sheet with the current constituents and weights of the portfolio. Subscribers to the momentum portfolio would have access to the sheet and receive an email every time I rebalanced or made changes to the portfolio. Expecting no more

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DMA as a simple investment tool

“It ain’t what you don’t know that gets you into trouble. It’s what you know for sure that just ain’t so.” *** Oracle: “what’s funny?” Neo: “Morpheus. He almost had me convinced” Oracle: “I know. Poor Morpheus. Without him, we’re lost” Neo: “What do you mean, without him?” Oracle: “Are you sure you want to hear this?” Neo: *Nods* Oracle: “Morpheus believes in you Neo. And no one, not you, not even me can convince him otherwise. He believes it so blindly that he is going to sacrifice his live to save yours.” *** That used to be me, with

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How risky are small and mid caps, really?

Synthetics & Chemicals, SOL Pharmaceuticals, Prime Securities, Mardia Chemicals, Industrial Oxygen, FGP ltd, Asian Coffee, Rico Auto Industries, Modiluft…What do these companies mean to you? How about these: Value Industries, Crest Animation Studios, Chettinad Cement, Agro Dutch Industries, Matrix Laboratories, Aztecsoft, Salora International, Golden Tobacco…Do they ring a bell? Unless you were an active stock picker two decades ago, you probably didn’t recognise the first set. Or a decade ago, for the second set. Now take a look at this chart. You’ve probably seen it before. The NIFTY 500 (the index made up of the largest 500 companies by market

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Go ahead, time the market

8th Jan 2008: NIFTY closes at a lifetime high of 6,288. 27th Oct 2008: NIFTY closes at 2,524. Down 60% from the January high. Till date, this remains the largest drawdown in its history. What would a simple and implementable system that warned you to get out of the market before impending declines look like? Yes, I know. It can’t be done. All the “market timing does not work” literature categorically proves it. But isn’t the truism “Buy low, Sell high”, an attempt to time the market? So let’s consider this in the safe confines of an academic study and

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The complete list of 2019 stock recommendations

Deep sector expertise, vast networks of industry insiders, sophisticated spreadsheet models. The professionals have all these to do what every investor wants. To Beat the market. But do they? The equity research departments of AMCs, investment banks, wealth managers have already given their 2019 stock recommendations. Some foresee volatility in macro factors and therefore recommend staying with defensive sectors like FMCG, while others expect a capital goods revival, while some expect stocks with rural exposure to do well in an election year. This page tracks the 2019 stock picks of the major institutional investors along with their starting prices to

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