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CAGR Insights – 1 Dec 2023

CAGR Insights is a weekly newsletter full of insights from around the world of web.

Index1-Dec-2324-Nov-23Change
Nifty 5020,26819,7952.39%
Nifty 50018,11517,6442.67%
Nifty Midcap 50 12,33511,9553.17%
Nifty Smallcap 10014,23913,8282.98%

Chart Ki Baat

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Gyaan Ki Baat

Investment styles, reflecting individual preferences and financial goals, include value, growth, and income investing. Indexing replicates market performance, contrarian strategies challenge sentiments, and technical analysis uses historical charts.

Quantitative methods rely on mathematical models. Socially responsible investing incorporates ESG factors, and dividend growth investing prioritizes increasing dividends. Successful investors blend styles for a diversified approach, aligning with risk tolerance and financial objectives, stressing the need to understand one’s goals.

Here’s the list of curated readings for you this week:

Personal Finance

  • Anti-Personal Finance Expert Beliefs – The article reveals that achieving contentment is essentially elusive. Irrespective of one’s earnings, the desire for more persists. The benchmark for satisfaction continually shifts upward. Read here.

  • An ode for Charlie Munger – Charlie Munger embodied three characteristics – rationality, sound judgment, and straightforwardness. Read here.

  • How You Earn Is As Important As What You Earn – Becoming wealthy is straightforward – spending less than earning and investing the surplus – but the real challenge lies in patience, discipline, and emotional resilience over the long term. Read here.

Investing

  • Power Laws in the Stock Market – The article outlines that diversification is crucial because it’s impossible to forecast which stocks will deliver substantial returns. Read here.

  • Ramesh Damani on success and regrets – This interview discusses Ramesh Damani’s views on coping with losses, red flags in investing, stock bets that went wrong for him and personality traits of successful investors. Read here.

  • SEBI’s investigation into misuse of proprietary trading – Prop trades involve brokers trading on their own behalf rather than for clients. There have been concerns about brokers misusing this practice. Read here.

  • The enduring myth of Great Companies – Believing that historically successful companies will invariably remain solid, buy-and-hold investments in the future is a persistent misconception in investing. Read here.

Economy

  • The Full Reset – The article conveys the effectiveness of starting clean by explaining how the German military achieved significant strength during the 1930s. Read here.

  • Prime Time for Bonds – The article outlines a strategic investment outlook that favors fixed income over equities based on the global economic landscape, market valuations, and asset class fundamentals. Read here.

  • Foxconn’s struggle to make iPhones in India – Foxconn, investing heavily in its iPhone factory in Sunguvarchatram, faces challenges with higher material costs and more defective phones, leading to lower profitability compared to its Chinese counterparts. Read here.

  • Did copy-paste really cost TCS $200 million? – The case involves TCS allegedly obtaining and sharing confidential information about CSC’s software “Vantage” while working with US-based life insurance company Transamerica. Read here.

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Check out CAGRwealth smallcase portfolios here.

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That’s it from our side. Have a great weekend ahead!

If you have any feedback that you would like to share, simply reply to this email.

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.

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CAGR Insights – 24 Nov 2023

CAGR Insights is a weekly newsletter full of insights from around the world of web.

Index24-Nov-2317-Nov-23Change
Nifty 5019,79519,7320.32%
Nifty 50017,64417,6010.24%
Nifty Midcap 50 11,95511,9050.42%
Nifty Smallcap 10013,82813,882-0.39%

Chart ki Baat

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Gyaan Ki Baat

Tax loss harvesting is a strategy where investors sell depreciated investments to offset capital gains and minimize taxable income. The goal is to use investment losses to counterbalance gains, thereby reducing overall tax liability.
Losses can offset both long-term and short-term capital gains, taking advantage of lower tax rates for long-term gains. Excess losses beyond current gains can be carried forward to offset future gains. Regular portfolio monitoring is crucial for identifying opportunities to strategically sell investments at a loss, and consulting with tax professionals or financial advisors is recommended for personalized advice based on individual circumstances. 

Here’s the list of curated readings for you this week:

Personal Finance

  • Aligning with fundamental principles – Understanding and cooperating with these principles, individuals can allow the world to work in their favor, but taking the initial step is crucial. Read here.

  • Ashish Kacholia’s portfolio hits ₹3,000 crore with multiple multibaggers – Kacholia’s diversified investment strategy, particularly in SMEs and mid-cap firms, has contributed to the substantial growth of his portfolio. Read here.

  • Embracing Very Long-Term Investing – The importance of adopting a genuinely long-term perspective and being prepared to navigate through 2-3 business cycles for lasting wealth accumulation. Read here.

Investing

  • The Story of Ching’s – The journey of Desi Chinese form road side stalls to bagging a 5500 CR deal. Read here.

  • Dilution, like inflation, is a silent killer of returns – The article discusses the concept of dilution and that understanding and mitigating dilution risks are crucial for investors to avoid negative impacts on their investments. Read here.

  • How FPI flows have moved? – FPI flows in recent months have been disappointing globally, influenced by geopolitical tensions, currency pressures, and volatility in US treasury yields. Read here.

  • India’s stock exchanges introduce safety net for investors during outages – Major Indian stock exchanges introduced the Investor Risk Reduction Access (IRRA) platform to protect investors from broker-level technical glitches. Key features include immediate notifications, access through Unique Client Code or PAN, and restrictions on algorithmic trading and institutional clients. Read here.

  • How Noise is making noise – Noise has since become a market leader in the Indian smartwatch segment, achieving a record growth of over 80% YoY revenue in FY23, totalling ₹1,426 crore. Read here.

Economy

  • Rs 25,000 crore of Sahara money transfer to government – How this transfer could help allay various concerns and stabilize bond yields, influencing borrowing costs in the economy. Read here.

  • India Inc Q2 profit surges, revenue growth muted – India Inc reported an eight-quarter high of 41.4% growth in net profit in the September quarter, however, revenue expansion remained in single digits at 6.2%, with consumer goods and IT companies facing challenges for growth. Read here.

  • Why Markets are calm in the face of war – The article discusses how global markets have responded more to interest rates than the recent conflict between Hamas and Israel. Read here.

  • Real estate renaissance – Companies like the Jumeirah Group and Emaar Properties are eyeing India for luxury facilities and residential projects, recognizing the potential of India’s large and growing market. Read here.

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Check out CAGRwealth smallcase portfolios here.

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That’s it from our side. Have a great weekend ahead!

If you have any feedback that you would like to share, simply reply to this email.

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.

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CAGR Insights – 17 Nov 2023

CAGR Insights is a weekly newsletter full of insights from around the world of web.

Index17-Nov-2310-Nov-23Change
Nifty 5019,73219,4251.58%
Nifty 50017,60117,2571.99%
Nifty Midcap 50 11,90511,6142.51%
Nifty Smallcap 10013,88213,3653.87%

Chart Ki Baat
Source: Visual Capitalist See here.

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Gyaan Ki Baat

A credit rating refers to an unbiased evaluation of the creditworthiness of a company or government entity, either in a broad sense or specifically in relation to a particular debt or financial responsibility. The credit rating essentially involves predicting a company’s capacity to repay its debt and implicitly forecasting the probability of the debtor defaulting.

A strong credit rating signifies that, according to the evaluation of the rating agency, a bond issuer will most likely meet its financial obligations to investors with ease. Conversely, a low credit rating suggests that the issuer may face challenges in fulfilling its payments or potentially default on them.

If a company possesses higher credit ratings, the interest payments on the bonds issued by that company will be lower. Conversely, if a company has lower credit ratings, the interest payments on its bonds will be higher. Credit ratings are provided by Credit Rating Agencies (CRAs) like Fitch, Moody’s, S&P, CRISIL, and others. Credit ratings are represented as letter grades, with AAA being the highest and D being the lowest.  

Here’s the list of curated readings for you this week:

Personal Finance

  • Why Adventure is always a good investment – In the grand tapestry of life, it is the threads of memories that add color and texture, creating a mosaic of joy and satisfaction. Read here.

  • TickTock’s latest obsession ‘Slient Walking’ – Often overlooked in our bustling world, emerges as a powerful tool for cultivating mindfulness and promoting overall well-being. Read here.

  • India’s richest 100 – Mukesh Ambani regains the top spot on the list in 2023, while a few people were left off the list this year. Read here.

Investing

  • 4 things you must come to terms with as an equity investor – Investing comes with its own set of emotional pressures, including time constraints, expenses, and the ability to balance short-term bills with long-term investment focus. Read here.

  • Luck, humility, and arrogant money – Damodaran’s insights on the importance of being aware of biases, seeking opinions from those who think differently, and adaptability in the ever-evolving world of investing. Read here.

  • The Behavioral Case for Defensive Equities – The article discusses how human behavior, influenced by cognitive biases like loss aversion and overconfidence, can lead to irrational investment decisions. Read here.

Economy

  • Ahmedabad hotels cross Rs 1 lakh a night – With Cricket World Cup 2023 final upcoming this Sunday, travel and accommodation prices in Ahmedabad have soared dramatically. Read here.

  • When will India’s firecracker industry celebrate Diwali? – The Supreme Court’s 2021 ban on harmful chemicals in fireworks, reiterated recently, has impacted India’s fireworks industry economically. Read here.

  • RBI hikes risk weights on unsecured bank, NBFC loans by 25% – This move by RBI in response to concerns about the growing systemic risk associated with unsecured retail loans is aimed at stabilizing and calibrating the growth of such loans, requiring lenders to provide higher capital for such loans. Read here.

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Check out CAGRwealth smallcase portfolios here.

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That’s it from our side. Have a great weekend ahead!

If you have any feedback that you would like to share, simply reply to this email.

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.

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CAGR Insights – 10 Nov 2023

CAGR Insights is a weekly newsletter full of insights from around the world of web.

Index10-Nov-233-Nov-23Change
Nifty 5019,42519,2261.04%
Nifty 50017,25716,9961.53%
Nifty Midcap 50 11,61411,3062.72%
Nifty Smallcap 10013,36512,9623.11%

Chart Ki Baat

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Gyaan Ki Baat

An Equity Savings Fund is an interesting category for those who are looking to allocate some money for 5-6 years with an intention to outperform Bank FDs but not take a pure play equity market risk.

Equity Savings Fund invest approximately 30%-35% of total investment corpus in equity assets while the rest is invested in debt income funds and arbitrages. This allocation makes them an interesting choice for two reasons –

1) The allocation creates a balance where equity market linked risk is limited to 1/3rd of the corpus. This will lead to outperformance over Bank FDs over a 5–6-year period. But it also limits the downside in case there is a market downturn.

2) Qualifies them to be taxed as equity funds. Thus, they are way more tax efficient as compared to pure debt instruments.  

Here’s the list of curated readings for you this week:

Personal Finance

  • It never gets easier – The never-ending cycle of competition and achievement leads to disappointment in career for most, prompting a deeper probe into your ‘why’?  Read here

  • The joy of walking away – Material prosperity and validation, while essential, are not usually indicators of a fully satisfying and well-rounded existence. The article delves into why Peter Lynch delves chose an early retirement.Read here

  • Shift In Savings Curve? – Investors will need to consider reinvestment risks on maturing investments made during the high interest rate environment.Read here

Investing

  • PPFAS letter to unitholders – The Director of PPFAS Mutual Fund highlights their overall market outlook, addition to product offerings and portfolio construction approach. Read here.

  • Indians yet to warm up to lab-grown diamonds – According to Titan, Indians are reluctant to embrace lab-grown diamonds unlike in the US. They view diamonds as an investment as well jewellery. Read here

  • Robin Hood NYC 2023 – A chat between Stan Druckenmiller and Paul Tudor Jones discussing the US economy – how different will the post quantitative easing world look like? Will interest rates have a new normal? Read here

Economy

  • GST collections: signify economic resilience – Continued growth in tax collections is a positive sign for the fiscal outlook, showing the economy’s strength. Read here.

  • AI in Banking – Banks are embracing generative AI, which offers potential for increased earnings, enhanced decision-making, and improved risk management. Read here.

  • Why China is flirting with deflation as the west battles rising prices – As central banks in developed countries struggle with persistent high inflation, China faces the opposite challenge – the world’s second-largest economy is on the brink of deflation. Read here

  • India’s economy and markets around elections – The article summarizes theimpact of previous election cycles have on the growth, inflation, fiscal balance, FPI investments and currency of the country. Read here

  • India’s Rapid Progress in 5G! – According to Ericsson’s report, India has embraced 5G at a faster rate than other early global adopters. This is evident in their active usage of digital apps and services such as streaming, gaming, and augmented reality. Read here

  • What Could Move Oil Prices from Here? – The Israel-Gaza conflict has sparked concerns about its potential impact on the oil industry and the threat it poses to the global economy and markets. Read here

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Check out CAGRwealth smallcase portfolios here.

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That’s it from our side. Have a great weekend ahead!

If you have any feedback that you would like to share, simply reply to this email.

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.