Debt in Indian Companies

How much debt have Indian companies taken on over the last few years? Chart shows the aggregate debt on the balance sheets of listed Indian companies from 2008 to 2017. Note this is from a sample of ~ 1,000 largest companies by market cap. Since 2008, total debt has grown by 3.7X from 7.6 Lakh Crores (USD 116.8 Billion) to 28.3 Lakh Crores (USD 434.9 Billion) in constant currency terms. For context, the lines on the chart show total debt as a percentage of market cap and of country GDP (unadjusted for inflation). Which brings us to the natural question: Which

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What is rare is not always valuable

Continuing the series on common cognitive biases that impact investors. In case you missed it, read the introduction and first in the series: neglect of probability here What is scarce is valuable – Scarcity Error In a research project in 1975, Prof. Stephen Worchel split participants into two groups. The first group received an entire box of cookies and the second group just two to taste. Both groups were then asked to rate the quality of the cookies. This was repeated several times. The 2nd group rated the quality of the cookies much higher than the other. Gallery owners place

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The stocks investing checklist

This is a follow on post to “Why we fail” that examines the reasons we fail, in general and investing in particular. This post suggests a simple yet powerful concept that will improve your investment process and therefore, performance over the long-term. Oct 30, 1935 Wright Airfield, Dayton Ohio: The US Army Air Corps was conducting a flight competition to build the next-generation long-range bomber. Based on early evaluations, Boeing’s aluminium alloy model 299 was expected to come out ahead by a distance compared to those of competition. The Model 299 could carry five times as many bombs as the army had

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