Great articles to read on the web

Hello Sir,
This is a politically biased article , there are sharp opinions within the country on COVID handling & Farm laws . The people sitting at ground zero & hinterlands i.e the actual sufferers of these mis-steps may not have the means to write articles to counter this SPIN on recent events as some sort of farsighted ‘master-strokes of the govt’ .
This is at best to be polite an exercise in historic obfuscation if not downright white-washing of gigantic mistakes ! . Suffice to say that we should avoid posting articles which drive an agenda of politics , i protest and do not agree with anything written by this gentleman as a post facto intelligence !! at best !

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Dear @rajguleria

I respect your views and I have taken down the post. I feel that in this “age of spin” it’s very hard to do sensemaking. Most of all I had no intent to stir a political debate in this forum…my apologies if i offended anyone. Lastly, it’s my hope that some incredibly smart policymakers are steering our country in the right direction, keeping the interests of the most vulnerable and under-represented at the top.

Best

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3 ratios to pick winning stocks in the manufacturing space

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A good overview for checking the quality of CG in a company.

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@Savvy003

30 recommendations from CFA Society India Channel

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‘Is Tesla disruptive?’

Written in 2018. Still holds up well.

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June 2022 article regarding “Paints & coatings industry”
“The coatings and paints industry has been growing at a CAGR of 11% growth in the last five years. It is expected to grow ~13% for the near future”

Innovation key for the growth of the paints & coatings industry : Experts (indianchemicalnews.com)

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The Trillion-Dollar Manufacturing Exports Opportunity for India | Bain & Company

A beautiful article by Bain and company on Manufacturing being as Megatrend in India. Summarizing for the clarity of thoughts
Source – Bain and Company
Introduction –

  • India is on the cusp of structural shifts in the manufacturing sector
  • Export growth grown from 5-10% to 15% CAGR in last 2 years
  • FY21–22 reached $418 billion, an overall growth of more than 40% compared to the $290 billion from the previous year
  • Top 15 export categories accounted for over 72% of total export
  • India is expected to scale up its manufacturing exports to $1 trillion by FY28
  • Thanks to the performance of key sectors like automotive, engineering, chemicals, pharmaceuticals, and consumer durables

What’s Driving this manufacturing growth?

  • Supply chain diversification- India among the top four destinations for relocation of operations and shift from China to India
  • Sectoral Advantage - India is becoming a destination for exports thanks to low manufacturing costs and strong capabilities in technology. Key sectors automotive, engineering, chemicals, pharmaceuticals, and consumer durables
  • Government Initiatives- PLI outlay of $47.8 billion
  • Capex-led growth- Projected next five years capex is six times higher than last five years
  • Mergers and acquisitions- In 2021, 90 strategic deals with cumulative value of $100 billion finalised
  • PE/VC-led investments- PE/VC investments in Indian firms up 55% since 2019, hit record $70 billion in 2021

Sectors where Megatrends Visible-

  • Chemicals are estimated to grow at CAGR 19%–23% . Hot Segment Speciality and Agro
  • Reasons – Low cost Manufacturing, emerging popularity of CDMO and CRAMS
  • Pharma – CAGR 16-18%. Hot Segment Active API
  • Reason – PLI , Strong capex, 100% FDI, low labour cost
  • Industrial Machinery – CAGR 18-20%. Hot segment- Textile Machines
  • Reason - Indian steel is becoming globally competitive, with availability of cheap raw material (iron ore), new and innovative techniques
  • Electronics – CAGR 35% -40% Hot Segment- Industrial electronics
  • Reason - Increasing the focus on supply chain diversification is also going to make India an export hub for mobile phones and robust demand for integrated circuits and semiconductors
  • Automotive- CAGR: 15%–18% - Hot Segment – EV Components
  • Reason - e PLI and sharp uptick in FDI will increase capital inflow and EV
  • Textile Apparels – CAGR- 13-16% . Hot Segments – Technical Textiles
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This is one of the best tributes to Rakesh Jhunjhunwala that I have seen. Many thanks to SOIC for this! (Especially note the point about concentrated portfolio. Very few people really understand it. Explained beautifully @Worldlywiseinvestors :pray: )

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This was a great session. My takeaways:

How Indian broking industry is different from that of US

  • Every quarter, Indian brokers are required to refund the float. US brokers are able to invest the float, keep it, and profit from spreads.
  • Unlike brokers in the US, depositories own stocks in India. US brokers are able to lend the stocks and make money.
  • Payment for the order flow - US brokers can profit from the sale of the trade data.

This highlights how fundamentally different the Indian brokerage industry’s business model is and how difficult it is to achieve REAL zero fees here.

Other services that brokers provide

  • Research
  • Wealth management
  • Mutual fund and insurance distribution
  • ETFs
  • Custom products - Robo advisor

More on US Broking industry
Charles Schwab is more like a mini bank and their major revenue come from the spreads. When they eliminated the transaction cost, they were able to shake up the industry and acquire TD Ameritrade, which was highly dependent on the transaction fees.

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On why even WARREN BUFFET pales in comparison to JHUNJHUNWALA

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Sea bed are strewn with metal nodules which are a rich source of rare earth metals. A Canadian mining company is going to mine the ocean floor in Pacific…disrupting a fragile ecosystem in the process.

[Behind paywall]

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The concept of fractional investing will soon become a reality in India. The ministry of corporate affairs has formed the Company Law Committee which recommended the issuance of fractional shares. The framework for fractional shares investing is expected soon. As per the current norms, investors need to buy at least one share of a company whereas the fractional shares system allows one to put in a fixed sum of money to buy a particular stock.

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Rich Dad Poor Dad.

Hi @Chumantar,
Just a novice question to ask. As per the article, did Mr. Jhunjhunwala never infused any capital from outside apart from that initial 5k investment, throughout his investment journey?

He himself has said in many of his interviews that initially he invested money of his CA brother’s clients and made money on that. He also said that he used to get his capital for investment from his trading. So obviously he invested lots of his money from RARE enterprises as well as trading profits. These are all stories like Purana and Jatak katha. We should take them with trucks of salt. After all there is no audited statements or records to verify all these claims.

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The original seed money was 5k … Then he might have made " paanch ka pachis, pachis ka lakh…"…Rotation of money.

It might be need to be taken with a pinch of salt, but whenever you talk about big return over a period of time it will start with someone starting with 5-10 rs… Like say for Dhirubhai.

And mind you, now you will fund 5k dismal, but if taken into account in todays term it will be substantial.

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