Zeal to Read Weekly Newsletter
Weekly Newsletter | by 2 | on 2021-03-21 05:06
At Zebu we spend a lot of time reading news and articles that cover a wide range of topics, including investment analysis, psychology, technology, etc. We have been sharing our favourite reads with clients under our weekly ‘ Zeal to read ’.
In the short run, the market is a voting machine, but in the long run, it is a weighing machine. – Ben Graham
News you may use
After lockdown washout, FY21 sees hit IPOs
Cabinet clears development finance institution to raise Rs 3 lakh crore for infrastructure spend
Economy’s Set to Recover Sooner with Revival in Services Sector: RBI
Equity MFs Add Folios at Faster Pace in Feb – THREE STRAIGHT MONTHS of growth led by large cap, large & midcap, and midcap funds amid outflows from flexi-cap schemes
FDI rules in e-commerce: Govt starts consultation with various stakeholders
Fed Expects to Keep its Key Rate Near Zero Through ’23
Govt ear-tags 14.62 cr livestock with unique ID number
Govt proposes to increase re-registering fee of 15-year-old vehicles
High Economic Growth Will Spare India From Debt Trap, Say Experts
Household savings halved to 10.4% of GDP in Q2: RBI
India beats Russia to no.4 spot on forex kitty rankings
Inflation remains low in last 7 years: Govt
Job creation in India: 16.5 lakh benefited under Aatmanirbhar Bharat Rozgar Yojana
Medium-term framework: Govt may maintain inflation target band
Over 1.75 Mn Houses Constructed Under PMAY-U During Covid-19 Pandemic: Puri
Pandemic influenced 84% of ultra-wealthy Indians to reassess succession planning: Survey
Parliamentary panel for early disposal of pending 205 FDI proposals
Private PFs can invest up to 5% of surplus in AIFs that back MSMEs
PSU banks’ NPAs fall ₹1L cr in FY21
Recall Norms Tightened for Auto Cos – Minimum 100 complaints, indicating similar nature of defects, for three- and four-wheelers enough to initiate recall
Retail business at 93% of pre-Covid level in Feb, finds survey
Steel firms may find it tough to export next fiscal as domestic demand increases
Views may be of use
A man coming out of a bath carries with him a film of water of about one-fiftieth of an inch in thickness. This weighs roughly a pound. A wet mouse has to carry about its own weight of water. A wet fly has to lift many times its own weight and, as everyone knows, a fly once wetted by water or any other liquid is in a very serious position indeed.
Source: (https://www.collaborativefund.com/blog/too-much-too-soon-too-fast/ )
Watch Out, ETFs. Here Comes Custom Indexing
First there were index funds and exchange-traded funds. Then came direct indexing, in which you track an index but own the stocks directly through a separately managed account. That allows you to improve performance using tax harvesting, which can meaningfully improve returns. Now there’s custom indexing, in which you don’t seek to replicate any index at all and can employ factors like environmental, social, and governance (ESG) investing..
Source: (https://www.barrons.com/articles/watch-out-etfs-here-comes-custom-indexing-51616090219 )
An Incredibly Important Turning Point
Markets sense that inflationary forces, long dormant, are mounting. They have the dynamism of $1.9 trillion in “stimulus” in back of them. Further spending later this year will load additional inflation pressures. These forces are shouldering interest rates higher.
Source: (https://dailyreckoning.com/an-incredibly-important-turning-point/ )
Missing the forest for the trees
Despite having missed on Google and a lacklustre performance of Berkshire’s IBM investment, Buffett took everyone by surprise by investing in 1 Bn $ Apple in 2016. From 2016 to 2018, Berkshire invested nearly 35 Bn $ whose current value has close to 104 Bn $ currently! So what led Buffett, who used to shy away from technology stocks and reeling from the IBM blunder, proceed with the Apple investment in 2016 when it reported its first ever sales decline since 2001?.
Source: (https://compoundingengine.substack.com/p/missing-the-forest-for-the-trees )
Get Rich versus Stay Rich
Getting rich and staying rich are two very different skills. Getting rich is exciting, even thrilling, and often includes lots of risk taking. Staying rich is boring, bordering on mundane. That’s because the only way protect wealth with any degree of certainty is to diversify. Diversification by definition means that parts of the portfolio will always be lagging the rest of the market.
Source: (https://blairbellecurve.com/get-rich-versus-stay-rich/ )
Moats or Market Power?
A moat can be a strong brand — Coca-Cola or Disney, for example — or it can be intellectual property, say, the patented drugs of a pharmaceutical or biotech company. But maybe we have focused on the wrong metric all along.
Source: (https://blogs.cfainstitute.org/investor/2021/03/15/moats-or-market-power/ )
Stock-market people, stop troubling real people
Here’s how I picture a CEO’s life. 89 happy days, doing real work. Every 90th day, ditches laptop bag for chainmail, helmet, spiky metal ball attached to chain, steely look and steps into gladiatorial circus more commonly known as earnings concall.
Source : (https://buggyhuman.substack.com/p/stock-market-people-stop-troubling )
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