Zeal to Read
Weekly Newsletter | by 2 | on 2021-06-06 05:56
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 ’.
Investors must keep in mind that there’s a difference between a good company and a good stock. After all, you can buy a good car but pay too much for it.” ― Richard Thaler
News you may use
|At 9.2%, fiscal deficit is highest ever for Centre – Eco Indicators Paint Optimistic Picture, Falling Covid Cases Boost Mkts
Auto financiers may see NPAs climb during 2nd covid wave
Corporate profit to GDP ratio hits 10-yr high -India Inc’s combined net profit was up 57.6% to ~5.31 trillion in FY21
Eight core sectors’ output skyrockets by 56.1 pc in April
Electronic, Mobile & Auto Plants Crank up Output -Companies expect sales to normalise soon, led by pent-up demand
Expect global sugar prices to remain stable till January 2022: Abinash Verma, ISMA
Experts pare FY22 growth estimates as pandemic spreads in rural India
Exports up 12% in April, May despite pandemic
FDI in computer software, hardware jumps threefold to $26.14 billion in 2020-21: DPIIT data
Forex kitty hits $600bn, adds $105bn in FY21 – Gives RBI Enough Ammo to Meet Global Challenges: Das
Fuel sales plunge to lowest in year in India as states lock down for Covid
Govt proposes exempting battery-operated vehicles from registration fees
Home sales in Tier II and III cities fall in April
India’s manufacturing sector activity slips in May, heads towards stagnation: PMI
India’s trade deficit jumps 74.69% YoY to $6.32 billion in May: Govt data
Mayday: Consumer Goods’ Sales Crash on 2nd Wave – Lockdowns disrupt both production and retail channels; consumers cut back spending
MFs Add Global Shares to Improve Show – At least six equity funds have taken direct exposure to shares of global companies
Model Tenancy Act gets Union Cabinet’s nod
Power consumption sees 8.2 pc growth in May amid slow recovery in commercial, industrial demand
Prepare checklist for possible third Covid wave, says Piyush Goyal to industry associations
RBI cuts growth estimate to 9.5% -Governor says impact of 2nd wave on economy likely to be contained due to rationalised curbs-Expects higher inflation at 5.1%, Leaves key policy rates unchanged
Views may be of use
The New Productivity Revolution
Stagnation, in sum, is a choice. We can be optimistic about the technological obstacles to economic growth: there are none. We are not, in the sense of the number of technical steps required, that far off from slowing biological aging or mining asteroids. There are short-run gains ready to be had—more drugs coming to market, increases in energy abundance, faster forms of transportation, even tacos delivered by aerial drone. We are not doomed to decades of stagnation. But we need to think differently.
Source: (https://www.city-journal.org/innovation-economic-growth )
Master Series: Francois Rochon
Francois’ passion for investing is as obvious as his humility, and is mirrored in his deep interest in both baseball and art. His returns have been nothing short of outstanding over the years and are the envy of many. We’re very grateful to Francois once again for his insights and thoughts on matters. Truly he has painted a masterpiece of his own and we expect that his batting record will only continue to climb in the years to come.
Source: (http://mastersinvest.com/newblog/2021/3/25/chatting-to-francois-rochon )
Lifetime of investment
A Century of Investing: Baillie Gifford’s First 100 Years, written by former Senior Partner Richard Burns, describes the firm of the early 1980s as in a fragile state, following the investment industry slump of the 1970s. “We were desperate to build a sustainable business and we weren’t too fussy about which strategies we offered,” Plowden recalls. “There were a lot of very bright people and stock markets were fun and exciting, but portfolios tended to be put together on the basis of ‘we’ll have one of those and one of those and one of those’. It was a simpler world back then, without all this information at our fingertips.”
Source: (https://magazinebailliegifford.com/Trust42/lifetime-of-investment/ )
Is the stock market out of step with the economy?
The end of the pandemic or the market hitting a lifetime high does not signal that all is well. If we do not tackle unemployment, income distribution and competitiveness, this crisis will bite us down the road. We are in danger of becoming a rich country with lots of poor people. Re-skilling labour, vocational training, massive capital investments that create jobs, manufacturing incentives, easing the cost of doing business, rapid urbanisation, sectoral incentives that make the country competitive and allow labour force participation, are some of the measures the government needs to look at with a sense of urgency.
Source: (https://www.morningstar.in/posts/63493/stock-market-step-economy.aspx )
200+ Years of Asset Class Returns
There is a very good case to be made that returns over the next 50-100 years will be lower than they’ve been over the past 50-100 years. There’s simply more knowledge about the markets now, an implicit backstop from the Fed, lower interest rates and ever-increasing valuations. On the other hand, costs have never been cheaper, the barriers to entry to get invested have never been lower, there are more investment products available than at any other time in history and continued innovation in financial services.
Source:( https://awealthofcommonsense.com/2021/05/200-years-of-asset-class-returns/ )
Two Worlds: So Much Prosperity, So Much Skepticism
The demand for forecasts grows after a surprise. It’s quite an irony. Surprises make you feel like you’re not in control, which is when it feels best to grab the wheel with both hands, listening to those who tell you what happens next despite being blindsided by what just happened. That’s where we are with Covid and the economy. Ten months after the surprise of our lifetimes, everyone wants a clear map of the future. Who wins? Who loses? When will travel recover? Will work be the same? Have we learned our lesson?
Source: (https://www.collaborativefund.com/blog/two-worlds/ )
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