CAGR Insights is a weekly newsletter full of insights from around the world of web.
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Chart of the week
Gyaan of the week
What are Contra Funds?
Contra Fund is an equity mutual fund that employs a strategy in contrast to the current market conditions (work against the herd mentality). The fund manager buys equities that are available at a discount due to the prevailing market conditions or market cycles, or when specific industries experience a downturn, (for example – steel which is cyclical). It purchases shares of underperforming/undervalued businesses and holds onto them until the value is unlocked. These funds are not suitable for short-term investments and often perform better over the long run.
Here’s the list of curated readings for you this week:
- Rule #1 of Building Wealth: Play Defense With Your Money- Playing defense with your money doesn’t mean you can’t build wealth. It means you’re taking a calculated approach to your investing decisions. Read here.
- How much money is enough to retire comfortably – The good news is most people probably overestimate how much money they will actually need for retirement. Most of the people who end up millionaires never come close to spending all of their money anyway. Read here.
- Read about the ideas from Top industry professionals on some of the best stocks to invest in. Read here
- Because you can be sure you got the odds right (why low beta or low volatility is often preferred – more predictability). But most big winners will be at the bottom – with a lot of survivorship bias. These guys will get lot of capital at exactly the wrong time. This is what you need to protect yourself from. Read here
- Both cash segments and F&O segments reported jump in their volumes in the last two fiscals. The F&O segment grew by 97% and 160%, respectively, in FY21 and FY22, while the cash segment grew by 70% in FY21 before tapering down to a modest 9% in FY22. CareEdge believes that the growth rates in market volumes are not sustainable over the longer-term and the growth rates are expected to decline to a more normalised level. Read here
- Buffet on Microsoft – In 1997 Buffet was pitched Microsoft. His response on how he prefers to structure investing as a no-called-strikes game & wait for a fat pitch was fantastic. Read here
- India undergoing the most unprecedented change in the history of the free world – Watch here.
- Indian inflation remains high, premature to lower guard – MPC minutes – “We must … remain unwavering in our commitment to bring down inflation to ensure a decisive and durable moderation in inflation towards the target of 4% over the medium term, while being mindful of growth,” RBI Governor Shaktikanta Das said. Read here
- India’s eight core data is now better than pre-covid with coal/electricity/natural gas/fertilizers exceeding pre-covid growth. Read here
- Back when PPFAS Flexicap was not a consensus play, it was our conviction buy. Not only has the AUM for the fund grown 18 times since then (From INR 1,618 Cr in Feb 2019 to INR 29,344 Cr as I write today), the fund has done phenomenally well for its investors. Read the twitter thread here.
- The staggering out-performance of Regional movies as compared to Hindi and English movies is clear in the numbers. Read the LinkedIn post here.
Check out CAGRwealth smallcase portfolios here.
That’s it from our side. Have a great weekend ahead!
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The content of this newsletter is not an offer to sell or the solicitation of an offer to buy any security in any jurisdiction. The content is distributed for informational purposes only and should not be construed as investment advice or a recommendation to sell or buy any security or other investment or undertake any investment strategy. There are no warranties, expressed or implied, as to the accuracy, completeness, or results obtained from any information outlined in this newsletter unless mentioned explicitly. The writer may have positions in and may, from time to time, make purchases or sales of the securities or other investments discussed or evaluated in this newsletter.