Zeal to Read Weekly Newsletter
Weekly Newsletter | by 2 | on 2021-05-15 11:04
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 ’.
The market’s not a very accommodating machine; it won’t provide high returns just because you need them – Peter Bernstein
News you may use
Assets under management: ICICI Mutual displaces HDFC MF from second spot
Electrics may not form 1% of cars by ’24: Hyundai
Factory dispatches of PVs decline 10% in Apr
FMCG sales up 9.4% in March quarter: Nielsen
Foreign spends dip $5.7bn in 10 months – Covid Impact: Overseas Travel Spend Halves, International Study Fees Down $1Bn
FPIs Slash Bullish India Bets on US Inflation, Covid Worries – Least bullish on Indian Market since September 2020 – The long-to-short ratio of overseas investors in Nifty futures down at 40.6% from 81% in January 2021
IIP shoots up on low base, retail inflation eases – Economists say policy rate reduction unlikely
India Inc’s ECBs hit 2-year high in March 2021
India’s exports jump to $30.63 billion in April; trade deficit at $15.1 billion
Individual investors’ holdings in passive funds jump in FY21 -Low cost, simple structure of funds drive global trend
March factory output climbs, retail inflation eases in April for FY21, IIP stands at -8.6% against -0.8% in FY20, signalling deindustrialization of the economy
MF assets hit record level of over ₹32L crore in April – Equity Funds Remain In Favour, See Net Inflows For 2nd Month
Mobile phone production down 50% on Covid hit
Moody’s cuts GDP forecast to 9.3% from 13.7% in FY22
MSCI rejig can bring $350 mn as ETF inflows
Sectoral Mid-Cap & Small-Cap Funds in Demand – Equity MF Inflows at ₹3,437 crores in April, Covid 2.0 a Drag – Inflows lower than the ₹9,115-crores received in March; total assets grow to ₹32.42 lakh crores.
Smartphone Projections Flattened – Analysts say demand recovery could be tepid even after second wave wanes
Vehicle registrations fall to 9-month low – Dealers seek relief from govt, manufacturers
Buy now, pay later changed retail. Health care and rent are next
These start-ups sell the myth that shoppers are in greater control of their money, even while they’re fulfilling their consumerist desires. Customers, particularly those who are budget-conscious or financially constrained, are under the illusion that they’ve spent less and are able to hold on to their hard-earned cash for a few weeks longer. Meanwhile, for retailers, a service like Afterpay could theoretically increase the average value of a shopper’s order — encouraging them to spend money they don’t presently have.
In-Person vs On-Screen
Each company needs to figure this out in a way that works for their team and culture and I believe that there is no “right way” for everyone. But I also believe that in-person interactions remain critical to making better decisions, better products, better cultures, and better companies and so I would encourage everyone, including the fully remote teams, to figure out how to make in-person interactions happen on some regular cadence.
10 Things You Shouldn’t Care About as an Investor
No one on their death bed has ever regretted the fact that they didn’t have a better Sharpe ratio. The whole point of investing in the first place is achieving your financial goals, not beating the market.
Other People’s Money
In the 1950s and 1960s, Warren Buffett ran a hugely successful investment partnership. Aged just 25, he clawed together $105,000 from six investors and began managing it out of a small study in his rented home, accessible only via the bedroom. His agreement with these early investors was novel: they were guaranteed a return of 4% on their funds; anything above that he would split 50/50 with them, but he would also cover a quarter of any losses out of his own pocket. “My obligation to pay back losses was not limited to my capital. It was unlimited.” Fortunately for Buffett, that loss clause was never triggered – he never had a single down year. In his first few months of operation, he beat the market by 4% and over the next 12 years he would go on to compound at a rate of 31.6% per year before fees. By the end of 1968, he was managing $105 million on behalf of over 300 investors. His reputation had grown and he had become rich.
Dividends: A 400-Year-Old Practice
Since they were first issued in the early 1600s to now, dividends remain the same in two ways. First, they still provide a useful mechanism for returning capital to shareholders. Second, they continue to serve as important proxies for identifying strong management teams that allocate capital efficiently. Over the last century there has been a proliferation of strategies that utilizing dividends as a key selection factor (dividend growth, dividend quality, etc.). While the types of strategies have evolved through time, the underlying notion that dividends provide investors with useful insights about companies as a whole has not changed over hundreds of years.
Source: (https://www.osam.com/Commentary/dividend-history )
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