Zeal to Read Weekly Newsletter
Weekly Newsletter | by 2 | on 2021-04-11 12:26
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 ’.
“If most traders would learn to sit on their hands 50 percent of the time, they would make a lot more money.” – Bill Lipschutz
News you may use
Cabinet nod: PLI support of Rs 11,000 cr to white goods, solar modules
Checking tax evasion: From this financial year, taxman will have direct access to capital gains data
Covid year ends on a positive note; steel demand adequate
Direct tax collections top revised estimates by 5% – Refunds Jump 43%, Advance Tax Mop-Up Grows 6.7%
Economic measures taken by countries during pandemic may have unintended consequences: IMF
Economic recovery still shallow, a month’s national lockdown can dent GDP by 2%: Report
Equity Funds Record First Net Inflows in Nine Months – INFLOWS INTO EQUITY FUNDS AT ₹9,115 CR IN MARCH driven by categories like ELSS, sectoral, focus and flexi-cap funds; collections via SIPs at ₹9,182 cr, up from ₹7,528 cr in Feb
FDI equity inflows up 28% in April-Jan
FMCG Sales Growth Slows in March Qtr – Sector sees 10.3% growth, against 17% rise in Dec qtr, indicating subdued demand for packaged food, hygiene products
IMF raises India’s FY22 growth forecast to 12.5% -Covid-19 Recession Likely To Leave Smaller Scars On Global Eco Than ’08 Crisis: Report
In a 1st, RBI to buy ₹1L cr bonds in Q1 -Move Aimed At Keeping Rates In Check To Boost Growth, 10Yr Yields Drop
India ‘red hot investment opportunity’ for clean energy: Kerry
Indian refiners to buy one-third less oil from Saudi Arabia next month
Moratorium: RBI directs lenders to refund compound interest to borrowers
Nabard balance sheet grows 24% to Rs 6.57 lakh crore in FY21
Nifty50 Cos’ Q4 Net Profit may Double on a Lower Base – REVENUE likely to grow at 20% year-on-year, but bottom line to taper on sequential basis; second wave of Covid poses a challenge for FY22 prospects
NITI Aayog considers separate PLI scheme for MSMEs, examines biz models
Q4 may see highest revenue growth in 8 qtrs for India Inc – 15-17% Surge Expected Due To Better Demand, Cost Savings
RBI status quo on policy supportive of economic growth; liquidity measures in right direction: Experts
The second wave: Migrant crisis looms again as Covid-19 curbs expand
Total FDI up 15% in April-January, highest so far in first 10 months of any fiscal
Vivad Se Vishwas: Govt nets Rs 54,000 crore, half of it from PSUs
Views may be of use
The Time I Sold Furbies for Money or, more appropriately, why you should gamble to get better at estimating probabilities
Part of understanding probabilities to improve at games is properly internalizing what happens to you. Every decision you make should be accompanied by a specific reason for doing it. Having a bad reason for doing something is better than no reason; a bad reason can be continually improved until it becomes good reasoning. Make a hypothesis, test it, internalize the feedback you receive, and gradually chip away at your beliefs until they’re less wrong than before.
Source: (https://luckymaverick.substack.com/p/probability )
Attempting the Impossible – Are you building a business or practicing your craft?
“The distinction between an investment practice and investment business. A business gives to the customer what they want. The manager creates a product to fill a need. A practice, like a medical or law practice, is there to give a client what they need.”
Source: (https://neckar.substack.com/p/attempting-the-impossible )
It’s Hard To Kill The Stock Market
Never separate the terms Long Term and Investing. Understanding this is 95% of wealth creation. It’s mind-boggling the deluge of carnage stocks can absorb and eventually roar back to make new highs. Don’t believe me? Take a look at Germany.
Source: (https://tonyisola.com/2021/03/its-hard-to-kill-the-stock-market/ )
The venture capital industry was built on the premise that both capital and high quality companies are scarce. For most of the history of the industry, this has been true. I remember sitting at demo day in 2011 and marveling at the fact that the combined capital of all the VCs in the room was less than that controlled by the hedge fund at which I had worked. But the model is wrong. Venture capital is abundant, and that fact should fundamentally change how founders fundraise.
Source: (https://blog.aaronkharris.com/abundant-capital )
Always true, nowadays obvious – Timeless lessons are better appreciated in tumultuous times
When a publicly-listed goodness falls from 100 to 50, I am wracked with doubt despite having waited years for exactly this. Doubt about goodness. Doubt on whether I’ll get a stomach upset. Self-doubt. Doubt that those who marked it down know something I don’t. While I am more happy than sad at a good deal, my joy isn’t unconditional or unambiguous despite years of preparation. I nibble, hesitantly and fearfully. Then, it gets worse. Having bought a few at 50, price falls to 25. Instead of rushing to fill my fridge, I lose appetite. Even the one that I just savoured no longer sits well in my tummy. Weak spirits may even throw up. To profit from progressively better deals in a stomach-churning environment, the gating factor is temperament, not intellect. After March Madness, the etymology of the word ‘guts’ makes complete sense.
War on Cash: The Next Phase
With so much news about an economic reopening, a border crisis, massive government spending and exploding deficits, it’s easy to overlook the ongoing war on cash. That’s a mistake because it has serious implications not only for your money, but for your privacy and personal freedom, as you’ll see today. Cash prevents central banks from imposing negative interest rates because if they did, people would withdraw their cash from the banking system. If they stuff their cash in a mattress, they don’t earn anything on it; that’s true. But at least they’re not losing anything on it. Once all money is digital, you won’t have the option of withdrawing your cash and avoiding negative rates. You will be trapped in a digital pen with no way out.
Source: (https://dailyreckoning.com/war-on-cash-the-next-phase/ )
Different Kinds of Stupid
Bernie Madoff summarized this idea a year before his scheme unraveled. “In today’s regulatory environment, it’s virtually impossible to violate the rules,” he told an audience in 2007. “This is something the public doesn’t really understand. It’s impossible for a violation to go undetected. Certainly not for a considerable period of time.”
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