What do you believe in?
Read MoreThe first principle is that you should not fool yourself, and you are the easiest person to fool
– Richard Feynmann
Trump, black money and implications for stock prices
Smart money threatened a 10-15% single-day drop in the US Market if Trump was elected and a one day 100 USD/oz. upward movement in the price of Gold. Well, Trump is king, the US markets have rallied and Gold has declined.
Read MoreDeveloping competitive advantage as an investor
Investing literature is rife with guru’s urging investors to buy companies with competitive advantage.
Read MoreRole of behaviour in long term investment performance
Investor behaviour is as much a determinant of long term investing success, as a fund manager’s skill in building a portfolio.
Read MoreThe pain associated with being a long term investor
Our investment process emphasizes focus on “Secular and Structural” growth opportunities vs “cyclical” ones. Secular and structural implies growth irrespective of economic conditions while cyclical implies opportunities that will be affected by trends.
Read MoreThe British Referendum: is it time to load the elephant gun?
This morning, while listening to the Brexit results, I chanced upon a conversation on a business channel. The same anchor who a few months ago said it was futile to forecast, was waxing eloquent about how Brexit could be worse than the Lehman crisis and how it could affect Indian equity markets for years.
Read MoreInvestment Perspectives: Define your Guiding Principles
A prominent research house gave a bearish call on the market at the end of February. Despite the Index climbing over 16% in the past 2 months, the firm stuck to its guns.
Read MoreBeware the enemy within
We have found the enemy and he is us
The chart below shows the time the NIFTY has spent in its historical trading bands of between 10-29 trailing earnings.
Read MoreCaveat Emptor
Complex products earn higher upfront commissions for Wealth Managers. Hence, there is frequent mis-selling of such complex financial products to investors.
Read MoreThe strategic importance of holding cash and equivalents
Solidarity is a multi-family investment office. We are often asked (by clients with high ability and willingness to take risk) why we recommend they should hold at least 10 -15% of their Investible Assets in Bonds/Liquid funds and not be fully invested in Equities; especially if clients don’t need the capital for at least 3 years.
Read More