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Zeal to Read

Weekly Newsletter

Zeal to Read

Weekly Newsletter | by 2 | on 2021-04-04 07:00

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 ’.

Even the intelligent investor is likely to need considerable willpower to keep from following the crowd – Benjamin Graham


News you may use

Biden to unveil once-in-a-century USD 2 trillion investment plan to transform America’s infrastructure

Cabinet approves Rs 11,000-crore PLI scheme to promote food processing

Centre tightens rules of grants, ropes in RBI for disbursal of funds to states

Centre, RBI decide to continue with 2-6% inflation target regime

Core sectors output contracts by 4.6 pc in February 2021

Corporate investments in debt MFs soar in Apr-Feb

Exports surge by over 58% in March, imports rise 53% – India Sees Highest Monthly Outbound Shipments Of $34bn

Foreign Investors Take Home 30% More in Oct-Dec – Returns on FDI investments, servicing of bonds and NRI deposits key factors for surge in investment income outflows

Govt decides not to offer soft loans under SDF to sugar mills for a year

Govt extends current foreign trade policy till September

Govt mops up Rs 32,835 cr from disinvestment in FY21, exceeds RE target

Govt not interested in footing Rs 8,000-cr moratorium bill for banks

Govt sticks to 4% inflation goal for RBI

GST collections hit record high of ₹1.24L cr in March : Mop-up Crosses ₹1L Cr Mark for 6th Straight Month

Home Appliances, Smartphone Sales Continue to Surge – Wider curbs amid rising cases may impact demand in June quarter, fear most cos

India bounced back big way but not out of woods; real GDP growth to be 7.5 to 12.5 per cent: World Bank

India records current account deficit of 0.2% in December quarter

India’s 2021 economic output likely to remain below 2019 level: UN report

India’s inflation “uncomfortably high”: Moody’s Analytics

Indian firms raised a record ₹78,731 cr through QIPs in FY21; over two years, proceeds soared 2.5 times that of IPOs

Indian Railways new record: Log highest ever figures in the electrification of routes

Mumbai Property Registrations Jump 365% – Deals rise for 7th month in a row in March – State decides not to raise ready reckoner rates or extend stamp duty relief

PAN-Aadhaar linkage date extended till June 30

PSU banks go slow on asset sales, await privatisation list

PV Sales Double in March, but Yr Ends with 3% Dip

QIPs Trump IPOs in Fundraising Second Year in a Row

Railway’s cargo-loading up 2% over last year; revenue up 3%

Repay compound interest paid by borrowers, IBA tells banks – Says It Will Ask Govt to Compensate Lenders for Payment

Top 5 metros accounted for 38% of active white-collar jobs in Covid-struck year

Trai meets bankers to iron out issues over new pesky SMS regulations

With a vehicle scrapping certificate, CVs can be given a discount on road tax for 8 years: Ministry

Views may be of use

Lessons in a 1938 Letter from Keynes

I do not believe that selling at very low prices is a remedy for having failed to sell at high ones. The criticism, if any, to which we are open is not having sold more prior to last August. In the light of after events, it would clearly have been advantageous to do so. But even now, looking back, I think it would have required abnormal foresight to act otherwise. In my own case, I was of the opinion that the prices of sterling securities were fully high in the spring. But I was prevented from taking advantage of this, first of all by the gold scare, and then by the N.D.C. scare, both of which I regarded as temporary influences for the wearing off of which one should wait. Then came the American collapse with a rapidity and on a scale which no one could possibly have foreseen, so that one had not got the time to act which one would have expected.
Source: (https://novelinvestor.com/lessons-in-a-1938-letter-from-keynes/ )

Beware of the Bubble

The alternative to speculation and riding on bubbles, is investing. And while I was discussing the difference on a walk with my son today, he came up with a really neat analogy:
A stock speculator is like somebody who notices the weather is warming up in March, and that the trend continues and even accelerates April and May. By August they have sold their winter coats and boots and are fiercely accumulating bikinis and flip-flops, shouting to everyone that you an’t seen nothing yet, this trend is just getting started!
An investor is somebody more seasoned. They have been through this all year after year, decade after decade, and thus they know what comes after summer. Therefore, the investor selects a portfolio of clothes that serve a purpose. Some of these garments deliver warmth in winter, others are great for the beach, and all of them with a timeless style and durability.
Source: (https://www.mrmoneymustache.com/2021/03/26/beware-of-the-bubble/ )

COVID Accelerated the Future: Now Seize It

In many ways, COVID pulled forward the future that technology companies have been building. Behaviors that would have taken decades to go mainstream were normalized in a matter of weeks. The question is: which behaviors will persist over the next decade, and which will be fleeting? Enduring companies are built around long-term trends and behaviors, so take advantage of this window while keeping your sights trained on what you could accomplish over the next decade.
Source:(https://medium.com/sequoia-capital/covid-accelerated-the-future-now-seize-it-6a9e1d89a2c0 )

My 30 investment ‘lessons learned’

It is just a list of things I suspect to be true. I wish somebody had given me this list when I just started out, but then again, I don’t think I would have really listened and internalized any of it as a rookie. Sometimes in life you have to experience stuff yourself or watch others experience it up-close. The ‘negative’ lessons are impactful and I felt their importance viscerally and immediately as I experienced them in real-time, but the more ‘positive’ lessons and patterns emerge only as you look back
Source: (https://brosef.substack.com/p/5-my-30-investment-lessons-learned)

Bernstein: Free trading is like giving chainsaws to toddlers

A year ago, I would have answered that in the negative. I didn’t see any of the usual diagnostic signs that one sees during a bubble, which is people thinking that they’re going to be coming effortlessly rich… We weren’t seeing people quitting their jobs to day trade. You weren’t getting a lot of anger or pushback when you express scepticism, and you weren’t seeing extreme predictions. But we’re starting to see all of those things now. And particularly, with Robinhood and GameStop and the other short squeezes that are going on, there’s now a significant population of relatively young people who really believe that this is the path to effortless wealth, and they’ve already made it to easy street, and they’re quite excited about it.
Source: (https://www.evidenceinvestor.com/william-bernstein-free-trading/)

Confirmed! We Live in a Simulation

A 64-bit processor would perform a subtraction between say 7,862,345 and 6,347,111 in the same amount of time as it would take to perform a subtraction between two and one (granted all numbers are defined as the same variable type). In the simulated reality, seven million is a very large number, and one is a comparatively very small number. In the physical world of the processor, the difference in scale between these two numbers is irrelevant. Both subtractions in our example constitute one operation and would take the same time. Here we can clearly now see the difference between a “simulated” or abstract world of programmed mathematics and a “real” or physical world of microprocessor operations.
Source: (https://www.scientificamerican.com/article/confirmed-we-live-in-a-simulation/ )

On Confidence

The simple truth is no one really knows, and no one will know until the future becomes the present. The only thing we can say with confidence is that when that time comes, there will be experts who are sure they know what the future holds and people who pay far too much attention to them.
Source: (https://vivekkaul.com/2021/03/15/on-confidence/ )


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