Great articles to read on the web


#65

This is true.

This also means technology savvy private banks will have long runway and keep taking profitable retail market away from PSU banks.


(ashit) #66

Excellent read
WHAT DO CONSERVATIVE VALUE INVESTORS LOOK FOR IN RISK SEEKING ENTREPRENEURS?
By professor Bakshi

Thanks
Ashit


(avneesh) #67

http://www.zerohedge.com/news/2017-02-09/grant-williams-death-petrodollar-and-what-comes-after

An interesting and compelling read. What I could understand from it:
Current Scenario:
Oil countries sell oil in dollars (that’s why the term petrodollar)-----> These countries use those dollars to buy US treasuries(US government debt) -------> The problem is the treasuries are increasing at a rapid pace and they aren’t backed by gold.
What China is proposing:
Sell oil to China and accept yuan as payment -------> Use those yuan to buy physical gold from Shanghai Gold Exchange -------> Countries will have entity(gold) which is limited in quantity and cannot be produced out of thin air like US treasuries -----> Russia is already selling oil in yuan to china, Saudi Arabia is selling US treasuries at a rapid pace.


(Krishnaraj) #68

When you buy a share in the company via a broker, what does it mean to say you ‘own’ it? Why is there an ex-date a couple of days prior to the record date? What interesting problems can arise when certain events happen between the time you are a shareholder, you are a shareholder in only the books of your broker, you ‘lend’ shares to a short seller and the court decides an important matter while it is lent and so on.

Here’s an interesting case study on Dole Foods (a US entity), which had more shares claiming a settlement after winning a class action settlement, than it had on its records!

I learn’t quite a lot!


(Hemant V Bhatia) #69

Are we becoming Information Obese? While reading this i felt the writer has nicely articulate the point.


(Amit) #70

Lot of Financial and behavioral insights in the CFA blogs.

https://blogs.cfainstitute.org/


(Rajeev M. Parashar) #71

Applying the concept of deliberate practice for investing.


(Amit) #72

http://podcast.ft.com/2017/01/27/michael-mauboussin-reflects-on-30-years-in-the-markets/


(Krishnaraj) #73

The oracle of Omaha spoke with CNBC yesterday. Transcript here http://www.cnbc.com/2017/02/27/billionaire-investor-warren-buffett-speaks-with-cnbcs-becky-quick-on-squawk-box.html

Couple of insights stood out for me:

  1. Don’t mix politics and Investing, if you do that you will be making a big mistake.

  2. When speed and complexity are two requirements in getting a job done, usually complexity wins over speed.


(Amit) #74

Great video by Jatin Khemani from Stalwart Advisors.


(Tarun) #75

Great ability to zoom out and connect the seemingly unrelated dots. Even more importantly seeing it in the context that may not be evident to us though happening very much around us. Helped me ‘see’ things bit differently. Thanks


(Pavas) #76

Summary of talk by Howard Marks in India. The talk was mostly around Marks’ investment philosophy over the years. It did not really have new material that he hasn’t covered in his book (The most important thing), and quarterly memos, but still good to hear the timeless principles that have worked for him over 21 years at Oaktree (they have compounded at 19% net, since 1995):

• Most important criteria for an investment firm’s success is that all team members should have the same investment framework and value system and complementary skill sets. Else it doesn’t work over the long term. The partners at Oaktree are so closely aligned with each other that they have never had to take a vote in 21 years

• They have been successful in identifying the 3 large bubbles in the last 3 decades by avoiding accesses. They don’t know the timing of the bubble, but when they see over-generalization in the market (Eg. “tech stocks are not expensive at any price” or “mortgages are risk free investments”), they think it’s time to be super cautious

• They don’t think the market is in a bubble right now, but is nearing one, although timing can never be known for sure. They are sitting on $21B cash of their $100B corpus. In a 0% interest rate world, people are happy buying junk bonds at 5-6% yield. This doesn’t make sense to Oaktree, because they think junk bonds should yield 12-20% for them to make sense.

• At the time of making an investment, ask yourself – “how much optimism or pessimism is already factored into this price”

• Buying good companies DOES NOT EQUAL buying companies well…Entry price is the most important criteria for making any investment decision, be it a high quality company or a junk bond. At the right price, even a junk bond is AAA

• You can never time the bubble’s peak. You should just increase the level of caution and discipline if you find market to be frothy

• If you are not confused, you are doing it wrong. No good investor is 100% sure of the future outcome. You have to be unsure and skeptical. If something is obviously great, then it won’t be a bargain. I am always worried when I make an investment decision. That’s the only way there is. You can never be totally confident of a thesis.

• If someone says where are interest rates, currency etc headed, they have no idea what they are talking about. In 1982 Fed Chairman said in an interview – “If someone asks me if interest rates will go up or down, my answer is YES” :slight_smile:

• Investing is like being an airline pilot – hours of boredom punctuated by moments of terror

• When there is nothing clever to do, mistakes lie in trying to do something clever

• High risk DOES NOT EQUAL High return. If high risk means high return, then it’s not high risk by definition. In fact, in investing - LOW Risk = HIGH Return…Always think of the downside or the worst case scenario. Avoid downside and the upside will take care of itself. Unless you are a professional tennis player – avoiding unforced errors is more important than hitting aces. Just keep the ball in the play, and you will win

• Advice for investors – 1) be unemotional and 2) read anything and everything you can lay your hands on.

• He is writing his second book which is on asset selection and market cycles and will be out this year.


(Amit) #77

One of the things he said in his chat with et now is that you need to decide should I be aggressive or defensive now ? He said he is extremely cautious more caution than he advised an year back. He said quality companies are good defensive bets but if they become overvalued they become bad investments. So watch out for it too :slight_smile:


(sanketkulkarni1987) #78

Although the below article is meant for companies to evaluate their strategy, it is a applicable for investors making an investment decision.


(Alphin) #79

(Ajith) #80

Recently I saw the movie “The Big Short”. Inspired from the movie I was scouting for information about Michael Burry. I found the following a good read.


(Changu Mangu) #81

Enjoyed reading the article. I was thinking of increasing my holding in a similar depressed situation investment but probably clouded by noise. The article cleared my thinking again. I think I might increase my holding by 25% :blush:. Thank you for the link.


(Rajeev M. Parashar) #82

Sharing Ideas? Beware of Negative Lollapalooza Effects (H/T Value Investing World)

On the potential psychological pitfalls of discussing investment ideas on public forums.


(csteja) #83

Why not buy gold using dollar ?? U.S still has mostly​ gold as reserve.
Also, tbills give yields where as gold doesn’t.


(Alphin) #84

Try the blinkist app. It will give a short summary of the takeaways from full books. Very high return on investment of time…