India’s true sunshine sector

As of this writing, the NIFTY is trading slightly below its lifetime high of 10,477 points, nearly doubling from 5,517 in early September 2013. In the same period, NIFTY Price-Earnings has risen from about 16 to over 26, a zone considered to be significantly over-valued compared to median values. Price multiples expansion typically accompanies improving prospects for earnings growth in times of general optimism. The problem, for India, has been the lack of translation of that optimism into earnings growth. While the NIFTY (Price) has risen by 17% annually for the last four years, NIFTY Earnings Per Share (EPS) has

Read more

Let your baby play in the mud or the value of experiments

Expert Advice or Who to believe Adapted from the book Mindware – Richard Nisbett We get it all the time. Advice meant to improve our careers, our children, our bodies, our lives. Only, a lot of it is often contradictory. And unlike twenty years ago when there were three national dailies, two television channels and 1 radio station,  there’s an unending stream (literally) of tweets with links to online self-improvement resources. It’s the same with investing. “Time to buy consumer staples” “Get out of commodities” “Cyclicals are the next mega trend” or even “Sell Everything!“, the warning from the good folks at RBS in

Read more