Zeal to Read Weekly Newsletter
Weekly Newsletter | by 2 | on 2021-05-02 09:00
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 ’.
“In investing, what is comfortable is rarely profitable.” ― Robert Arnott
News you may use
Air India, BPCL sale may be delayed but will get completed by FY22
Bank credit grows slowest in 4 yrs – But 5% Expansion In FY21 Beats Forecasts On Boost From Housing, Agri, Small Biz
Brickwork Ratings revises downwards GDP forecast to 9% for FY22
EPFO can Invest up to 5% of Surplus in AIFs to Boost Infra – NEW NORM effective from Mar 15
Extent of repatriation worrisome: Experts-Feb’s Record Equity Outflows of $5.4 b May Include FDI Exits
Fertiliser consumption likely to rise 10% on higher acreage post bumper rabi harvest
Gold demand rises 37% to 140 tonnes in Jan-March
Government infuses Rs 200 crore capital in IFCI
Govt may attain up to 90% of FY22 disinvestment target on strong liquidity
India imposes anti-dumping duty on chemical from four regions
India’s organic food products exports rise 51% to USD 1bn in 2020-21
Lockdowns, travel restrictions dampen fuel, ATF sale: ICRA
Nifty Consensus Earnings cut by 1.7% for FY22 – Earnings Estimates of India Inc Take a
Hit – Over 80 cos in NSE 500 see cut in earnings per share estimates as Covid curbs impact demand
Non-food credit growth falls to 5.4% in fortnight ended April 9
Over 14,400-hectare area in Andaman & Nicobar becomes first large territory to get organic certification
RBI Caps Bank CEO Tenure at 15 Years
RBI Committee on ARCs invites views, suggestions from stakeholders by May 31
RBI launches latest round of surveys to get inputs for monetary policy
Rural Consumption Lost Steam Before 2nd Wave-Demand in rural India grew only 3% in March quarter compared with 7% in Dec quarter
Steepest weekly fall in fall in Nomura business resumption index-Business Activities at 1-year Low-Pent-up demand likely to return by June: Nomura
Stock Market Returns Are Anything but Average
From 1926-2020, the average return for the U.S. stock market was basically 10% per year. Investing in the stock market would be way easier if you could simply bank on 10% year in and year out. Unfortunately, it doesn’t work that way. If stock market returns were consistent each year, there would be no risk. If there was no risk to investing in the stock market, the stock market wouldn’t offer such attractive returns.
Investing Is A Bit Like Pro Sports
Most great American fortunes were earned via ownership of a single wonderful business for many years. Getting wealthy is much harder if you’re regularly trading your best businesses, thanks in part to the tax consequences but more so because the more decisions the manager makes the less conviction he probably has in each succeeding one. A portfolio manager should spend most of his time trying to find the next great company while also making companies on the current roster are still robust. Once done, get up the next day and do it again.
The Greatest Story Ever Told
Money is also a story. The first form of money was a barter system. A hunter might trade some meat for a farmer’s seeds. As cities grew larger and more complex, the barter system became inefficient. Perhaps the cobbler doesn’t need a gallon of milk from my cow. How might I entice him to make me some shoes? So humans created currency. Gold was an abundant and malleable metal that could easily be forged into coins, which were easy to carry around and trade. But the glue that bound these monetary systems together was belief in a common story; that the coins had a specific value.
Source: (https://blairbellecurve.com/greatest-story-ever-told/ )
The TINA (There Is No Alternative) trap
Gold and cryptocurrency have been gaining attention because they’re seen as effective hedges against inflation. But as I noted last week, they’re also risky because they lack intrinsic value. They’re only worth what the next person is willing to pay for them. Yes, gold has a longer track record than cryptocurrency. But that record is unimpressive.
Source: (https://humbledollar.com/2021/04/the-tina-trap/ )
12 Personal Finance Numbers You Should Know
When thinking about your financial future and creating a financial plan, there are some numbers that you really need to know. What I have come to realize is that very few people (especially millennials) know the important financial numbers in their life. So here is a list of the most important personal financial numbers you should know
The Importance of Useless Knowledge In Business
To become the best possible manager, you should invest time in acquiring ‘useless knowledge’. The type of knowledge that does not directly enhance the bottom line, but enlightens the individual.
Whose Decline is it Anyway?
This illustrates an uncomfortable truth—you can give people all the knowledge in the world and they will still make bad decisions. After all, if knowledge were the only thing that people needed to change their behavior, fewer people would eat donuts, candy, and other processed foods. Everyone already knows that this stuff isn’t good for them, yet many of them consume it anyways (myself included). Unfortunately, knowledge isn’t enough, yet there are people out there who claim that it is. They believe that if Robinhood had just disclosed the risks better, then these day traders would see the light. But we both know this isn’t accurate. Some people can’t learn this way.
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