Zeal to Read Weekly Newsletter
Weekly Newsletter | by 2 | on 2021-04-18 12:00
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 ’.
Stock market corrections, although painful at the time, are actually a very healthy part of the whole mechanism, because there are always speculative excesses that develop, particularly during the long bull market – Ron Chernow
News you may use
Airlines will report losses in FY22 too due to Covid: Study
As economy recovers, survey shows 59% firms in India intend to give salary increments in 2021
Bank Credit Records Slowest Rate of Growth in 2020-21 – Experts attribute slowdown to lack of appetite from cos, reluctance of banks to lend to lower-rated cos
Bharat Leaves Urban Market Way Behind in Auto Demand – Good crop, lesser impact of Covid, special finance options boost consumer sentiment in rural areas
Centre’s tax revenue grows in pandemic year
Consumer industries fear impact on output, sales & supply in India – Maharashtra Lockdown 2.0 Puts Cos on edge as state home to nation’s factories
Factory Output Shrinks to a 6-Month Low of 3.6% in Feb – Economy seen facing fresh challenges; experts rule out monetary tightening
GST collections to drop 20% in May due to state lockdown-like curfews, say experts
IMD forecasts ‘normal’ monsoon for 3rd straight yr
Impact of COVID-19 curbs, reverse migration: Remittances fall up to 10% in 2 weeks
India allows additional 3,675 tonnes of sugar export to UK under concessional duty quota
India’s palm oil imports rise 56.50 pc in March
Indian economy may clock double-digit growth in 2021: Moody’s
Indo-China trade deficit hits 7-year low amid Covid-19 pandemic
Insolvency and Bankruptcy Board of India sets up online platforms amid Covid curbs
IOC to buy Guyanese crude as India doubles up on cutting Opec dependence
Lockdowns to shave $1.25 bn a week off eco; 140 bps from Q1 GDP: Report
New MF SIPs Touch 3-Yr High in March – REBOUND in folios and ticket sizes due to attractive returns and no major corrections, say experts
Nomura Cuts India’s Growth Projection for FY22 to 12.6% – On a positive note, brokerage says current lockdowns likely to affect only a few sectors
Over 90% of season’s cotton crop has arrived in markets
Sugar exports at 24.96 lakh tonne so far, Indonesia emerges as top buyer
Temps’ wages surge 30% on labour shortage
Tractors end FY21 with historic production, growth in sales, exports
Truck rentals plunge, hit by new Covid-19 wave
WPI inflation spikes to over 8-year high of 7.39 per cent in March
Views may be of use
2020 Letter to Shareholders Written by Jeff Bezos
If you want to be successful in business (in life, actually), you have to create more than you consume. Your goal should be to create value for everyone you interact with. Any business that doesn’t create value for those it touches, even if it appears successful on the surface, isn’t long for this world. It’s on the way out.
Customers complete 28% of purchases on Amazon in three minutes or less, and half of all purchases are finished in less than 15 minutes. Compare that to the typical shopping trip to a physical store – driving, parking, searching store aisles, waiting in the checkout line, finding your car, and driving home. Research suggests the typical physical store trip takes about an hour. If you assume that a typical Amazon purchase takes 15 minutes and that it saves you a couple of trips to a physical store a week, that’s more than 75 hours a year saved. That’s important. We’re all busy in the early 21st century.
Source: (https://www.aboutamazon.com/news/company-news/2020-letter-to-shareholders )
The accelerating shift from public to private equity
As more capital flows into the PE, firms will be increasingly challenged to effectively deploy it. The focus is probably going to shift towards regions and segments which are under-developed from a private funding perspective. According to data from the Emerging Markets Private Equity Association (EMPEA), PE activity in the emerging markets represented 23% of global PE investment activity in 2018, up from just 9% a decade ago. The penetration of PE (measured as PE investments as % of GDP) is still very low in emerging countries.
Source: (https://marginalfutility.substack.com/p/14-the-accelerating-shift-from-public )
Finance as culture
When interest rates decline, businesses take more risk, which is good for innovation. But as rates approach zero, everyone with a high payout expected far into the future suddenly drowns in money, perversely distracting from innovation. This leads to a counterintuitive relationship between interest rates and innovation.
Source: (https://luttig.substack.com/p/finance-as-culture )
What Sort of a Business is Investment Banking?
Risk, I had learned, was a commodity in itself. Risk could be canned and sold like tomatoes. Different investors place different prices on risk. If you are able, as it were, to buy risk from one investor cheaply and sell it to another investor dearly, you can make money without taking any risk yourself. And this is what we did.
How people get rich now?
Every year since 1982, Forbes magazine has published a list of the richest Americans. If we compare the 100 richest people in 1982 to the 100 richest in 2020, we notice some big differences. In 1982 the most common source of wealth was inheritance. Of the 100 richest people, 60 inherited from an ancestor. There were 10 du Pont heirs alone. By 2020 the number of heirs had been cut in half, accounting for only 27 of the biggest 100 fortunes. Why would the percentage of heirs decrease? Not because inheritance taxes increased. In fact, they decreased significantly during this period. The reason the percentage of heirs has decreased is not that fewer people are inheriting great fortunes, but that more people are making them. 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: (http://paulgraham.com/richnow.html )
A Few Short Stories
It’s easy to underestimate how social norms stall change, even when the change is an obvious improvement. One of the strongest forces in the world is the urge to keep doing things as you’ve always done them, because people don’t like to be told they’ve been doing things wrong. Change eventually comes, but agonizingly slower than you might assume.
Source: (https://www.collaborativefund.com/blog/a-few-short-stories/ )
Note: the above material is neither investment research nor financial advice. Zebu Share and Wealth Managements Private Limited [SEBI Registration No: INZ000174634] does not seek payment for or business from this email in any shape or form.
This communication is confidential and is directed to and for the use of the addressee only. The recipient if not the addressee should not use this message if erroneously received, and access and use of this e-mail in any manner by anyone other than the addressee is unauthorized. If you are not the intended recipient, please notify the sender by return email and immediately destroy all copies of this message and any attachments and delete it from your computer system. Any opinions or advice contained in this email or newsletter should not be construed as investment advice. No liability whatsoever is assumed by the sender as a result of the recipient or any other person relying upon the opinion unless otherwise agreed in writing. The recipient acknowledges that Zebu Share and Wealth Managements Private Limited may be unable to exercise control or ensure or guarantee the integrity of the text of the email message and the text is not warranted as to its completeness and accuracy.
Copyright © 2021 Zebu Share and Wealth Managements Private Limited. All rights reserved.