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Zeal to Read Weekly Newsletter

Weekly Newsletter

Zeal to Read Weekly Newsletter

Weekly Newsletter | by 2 | on 2021-06-13 03:00

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’.
“The secret recipe for success in stock market is simple. 30% in market analysis skills, 30% in risks management, 30% in emotion control, and 10% in luck.” — Benjamin Lee

News you may use

April IIP Rises on Low Base Effect- Declines sequentially as second Covid-19 wave bites

Agriculture exports jump17% to $41 billion in FY21

Auto-debit payment bounces have gone up for the second consecutive month in May, emphasising the stress building up due to a halt in economic activities as authorities lock down various parts of the country to stop the spread of the virus in the second wave.

Automakers to raise output as curbs ease-Firms gear up to tap preference for personal mobility, high order book

Cabinet Approves up to 5% MSP Hike for Kharif Crops-Green Field Funding Working to build confidence in new farm laws, govt guarantees 50% hike in returns over average cost of cultivation

Cautious cos cut loans by ₹1.7L cr amid Covid-Shrink Investments, Conserve Cash, Opt For Capital Markets For Cheaper Finance In FY21

Company registrations stay the course during covid’s 2nd wave

Exports up 52.39 pc to $7.71 billion during June 1-7

Exports, ethanol boost to increase sugar mill margins up to 100 bps: Report

FinMin releases third instalment of revenue deficit grant of Rs 9,871 cr to 17 states

Flows into Equity Funds Hit 14-Month High as D-Street Rally Draws Investors-May shine third straight month of inflows into equity funds at ₹10,083 cr; SIP flows rise to ₹8,596 cr

Forex reserves cross $600bn for first time on foreign flows -Enough ammo to meet challenges of policy changes In US: RBI

Free food grains scheme extended till November-Additional subsidy requirement under PMGKAY-3 may rise to over ~90K cr

Impact of lockdowns induced by second wave of Covid-19 – FMCG Sales See Second Consecutive Fall in May

India’s April IIP surges 134.4% due to low-base effect

Indices Close at New Highs on Covid Data Boost, Global Cues – Sensex Ends up 174.29 points at 52,474.76 after scaling a record high of 52,641.53

Investors swap FDs for MFs in a quest for better returns-While growth in bank deposits declined in May, inflows in mutual funds hit a 14-month high

Life Insurers’ New Business Declines 5.5% in May – Covid second wave causes LIC to go slow; some private players post strong growth on a low base

MSME engineering exporters seek PM’s intervention on rising steel prices

Non-life insurers’ premium income up 11% YoY in May
Over $8bn M&A deals struck in May

Pandemic worsened indirect tax burden, hits domestic consumption: India Ratings

Pandemic worsens liquidity woes of India’s realty sector-Banks have set stringent conditions for real estate lending and NBFCs are lending selectively

Power consumption grows 12.6 pc in first week of June

RBI hikes fee banks pay for use of other lenders’ ATM

Registration of vehicles in May slips 55%

Retail loan demand sees faster growth in B-towns

Smartphone Brands to Increase the Volume -To advance product launches, ramp up marketing during July-Sept to cater to pent-up demand

World Bank slashed India’s GDP growth estimate for the current fiscal year to 8.3% from its previous

Views may be of use

A project of one’s own

You have moments of happiness when things work out, but they don’t last long, because then you’re on to the next problem. So why do it at all? Because to the kind of people who like working this way, nothing else feels as right. You feel as if you’re an animal in its natural habitat, doing what you were meant to do — not always happy, maybe, but awake and alive.

Source: (http://paulgraham.com/own.html )

It can’t be transitory

Let me tell you a fairy tale… A massive recession hits and the boss of a company – let’s say they make shoes – gathers her employees into the main headquarters for an all-hands meeting. Everyone is there, from the executive vice presidents to the guy who waters the plants. And she says, “Here’s the deal, gang…sales are going to fall by 20% this year and we’ll have no profits. We also don’t know when the economy will get better. My inner circle is telling me to lay off 20% of you immediately to make it through this period. But instead, I’ve decided to keep everyone and, rather than lay 20% of you off, I’ll just cut everyone’s compensation by 20%. How does that sound?” You never hear about companies doing this. And do you know why? Because, from a psychological standpoint, it would never work. People don’t care about their coworkers as much as they care about themselves. So seeing someone else’s job get saved while you’re stuck doing the same amount of work for a fifth lower compensation will not motivate you in any way or make you feel good about the company you work for. It will depress you, and then enrage you. Depression is just rage turned inward, I learned from re-watching the entire Sopranos this past spring on HBO Max. 

Source: (https://thereformedbroker.com/2021/06/08/it-cant-be-transitory/   ) 

The Rise of SPACs: IPO Disruptors or Blank Check Distortions?

The attention that SPACs have drawn over the last few months may make it seem like they are a new phenomenon, but they have been around for a long time, though not in the numbers or the scale that we have seen in this iteration. In fact, “blank check” companies had a brief boom in the late 1980s,  before regulation restricted their use, largely in response to their abuse, especially in the context of “pump and dump” schemes related to penny stocks. 

Source: (http://aswathdamodaran.blogspot.com/2021/06/the-rise-of-spacs-ipo-disruptors-or.html )

Seismic Shift

Change is happening in the financial markets. Can you feel it? It’s like the ground is shifting beneath my feet. Something new is happening, and maybe, just maybe, this time really is different. 
The shift may have already claimed its first casualty in Warren Buffett. He gets to keep his title as the greatest investor of all time, for now, but he has shown a complete inability to adapt to the new regime. How many other members of the old school will follow this path to nowhere? And how will we, the brave and open-minded souls decide what is worthy of our investment?

Source: (https://blairbellecurve.com/seismic-shift/  )

The Worst Business Ever

It’s hard to make a profit when you don’t make any money.
This describes the state of the food delivery business, which according to the founder and CEO of GrubHub, “is and always will be a crummy business.”*
It’s hard to believe he actually said this, but then again, he’s not lying. You might recall a few years back when he basically said the same thing using different words. In October 2019, prior to their earnings release, they sent out a shareholder letter to be like, yeah this is about to get ugly.

Source:( https://theirrelevantinvestor.com/2021/06/07/the-worst-business-ever/  )

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. 
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