Investment implications for Indian investors in a Trumpian world

“There are decades where nothing happens; and there are weeks where decades happen”-Vladimir Lenin

This is a new Trumpian world.   Within 8 weeks of being sworn in, Trump has voted alongside Russia at the UN against historical allies, threatened to annex Greenland, to cut defence aid to Ukraine, to exit NATO, pulled the US out of the Paris climate change agreement, defied the US judiciary ….

Read More

Moving forward with strategy, not with emotion – our view on investing in Small and Mid Caps at present

Last week, S Naren, CIO of ICICI Pru MF and a market veteran we respect immensely, warned investors about exuberance in Small and Mid-Caps. His statement “we think it is a clear time to take out lock, stock, and barrel from small and midcap” created quite a stir on social media.  “With great power comes great responsibility” and we endorse the general warning that Naren is dispensing to the price agnostic retail investor. 

However, our views on investing in Small and Mid-Caps today are more nuanced, and we share our specific stance on this subject below.

Read More

Stillness, backing a mission oriented promoter and the rewards of good Karma – Rakesh Jhunjhunwala’s incredible 340x returns in Inventurus

Inventurus Knowledge Solutions, a company promoted by Sachin Gupta and the late Rakesh Jhunjhunwala in 2006, is expected to list in the next 2 weeks.  The grape vine has the IPO valuation of the company pegged at between 20000-25000 Cr. If we take the mid-point of that range, the original investment has compounded ~ 340x for the Jhunjhunwala family in the last 17 years, an IRR of 41%. This adds to the long list of 100 bagger returns generated by him. 

Why can’t more of us be like him? Other than the ability to see the future with more clarity, what attitude is needed to earn such returns?

Stillness by deliberate choice. Read More

Why are Gold prices rising

We are an Equity fund house.  We will not be buying Gold in portfolios. However,  I would like to share my understanding of why Gold prices are doing well and why they should continue to do well. 

Gold has no attraction to fundamental investors as it generates no cash flow.  However, Gold has served as a store of value.  Here is the empirical evidence.

Read More