Tell me where I am going to die, so I will never go there
Tell me where I am going to die, so I will never go there
The above quote is attributed to Charlie Munger, universally acknowledged as amongst the wisest men in Investing.
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 MoreIs This 2008 Once Again?
Global markets have started the year with perhaps the worst performance in over two decades. The sell-off has prompted commentary in the media “hinting of parallels with the 2008 like crisis”
Read MoreMeasuring fund manager performance
Different managers follow different styles and approaches. By implication, their portfolios carry different levels of risk. The common wisdom at present is to compare manager performance using the “Sharpe Ratio” which compares the return generated per unit of risk taken.
Read MoreThe fallacy of “Growth now, Profits later” approach to building a business
Many venture founders are taking the “growth now and profits later” approach to building their business. I believe many of such ventures will fail as at some point the cash required from investors to fund such growth will not be available.
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