Where is India’s Amazon?

This article was first published on capitalmind.in In 2019, Amazon made $281 Bn in revenue. Up 20% from 2018. That is the combined revenue of the top-5 revenue-earning Indian companies: Reliance, IOCL, ONGC, BPCL and SBI. A year later, in 2020, Amazon clocked $386 Bn, growing 37%. Put another way, Amazon added 1.4 times the total annual revenue of Reliance Industries as incremental revenue in 2020. Chart shows Amazon’s meteoric revenue growth since 1997: Yes, some of that growth in 2020 was aided by the pandemic but is not an aberration. Since going public 24 years ago, its annualized revenue growth rate is 41%.

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The complete list of 2018 stock recommendations

When I started investing in equities, I used to be in awe of equity research reports. Immaculately formatted 5-page documents with their glossy charts and tables of financial projections followed by a confident Buy / Sell / Hold recommendation based on a precise target price. I figured those target prices were arrived at by hardcore sector experts working with proprietary excel models of such complexity they would probably crash any computer with conventional specifications. That awe lasted until I realized the “models” in use might as well have been random number generators due to their sensitivity to assumptions about an

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Which value metric works best?

I recently undertook a quick and dirty backtest on NIFTY stocks to verify whether buying a portfolio of the cheapest index stocks and rebalancing annually would beat the broader index. In spite of the fairly short period under test (nine years from 2008 to 2017), if you’re a value investor, the results are encouraging. From Sep 2008 to Aug 2017, ignoring transaction costs and dividends, a 10 stock value portfolio returned 18% annually compared to 9.8% for the NIFTY. The details of the test and outcomes are in the post ‘Can buying cheap NIFTY stocks beat the index‘ For this test,

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