Nifty ends the week below 8,350 on poor Q3 results

Benchmark indices continued trading under pressure as investors remained cautious ahead of inauguration speech of Donald Trump as US President and after disappointing Axis Bank’s earnings.

Nifty 50 breached its 8,400 level dragged by Axis Bank, Bank of Baroda, Adani Ports and ACC while BSE Sensex fell as much as 296 points at intra-day.

S&P BSE Sensex settled the day at 27,034, down 274 points, while the broader Nifty50 ended at 8,349, down 85 points.

Among broader markets, BSE Midcap index fell 1.5% while BSE Smallcap index fell 0.1.2%.

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Reblog: Quality Companies, Compounders and Value Traps – Investment Masters Class

sees-candy

Many of the great investors evolve over time to focus on high quality companies.  In the post ‘Evolution of a Value Manager’ I outlined how Buffett, with insight from Munger and the acquisition of See’s Candy transitioned from seeking cheap companies [ie cheap PE/, price/book etc] to trying to purchase high quality companies at reasonable prices.  Li Lu and Mohnish Pabrai are two Buffett disciples who have made a similar transition.

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Reblog: The Dhandho Investor

Value investor Mohnish Pabrai wrote The Dhando Investor: The Low-Risk Value Method to High Returns (Wiley, 2007).  It’s an excellent book that captures the essence of value investing:

The lower the price you pay relative to the probable intrinsic value of the business, the higher your returns will be if you’re right and the lower your losses will be if you’re wrong.

If you have a good investment process as a value investor, and you’re focused on cheap and good companies with low or no debt, then you are likely to be right on roughly 2/3 of your investments.  Because losses are minimized on the other 1/3 – due to the low price paid – the overall portfolio is likely to do well over time.

Mohnish sums up the Dhando approach as:

Heads, I win;  tails, I don’t lose much!

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Sensex on Friday ends marginally lower, Nifty holds 8,400; TCS top laggard

The benchmark indices on Friday settled marginally lower after market heavyweight Tata Consultancy Services slumped on worries about its future following key management changes.

The S&P BSE Sensex ended at 27,238, down 9 points, while the broader Nifty50 closed at 8,400, down 7 points.

In the broader market, the BSE Midcap (down 0.03%) and BSE Smallcap indices (up 0.03%) closed flat.

The market breadth, indicating the overall health of the market, was negative. On the BSE, 1,493 shares declined and 1,236 shares rose. A total of 177 shares were unchanged.

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Reblog: The Benefits Of Productive Worrying – yes worrying can be good for you!!

Seth Klarman is one of the world’s most respected value investors, and when he speaks, it always pays to listen. Unfortunately, Klarman is relatively media-shy, his interviews over the years have been few and far between. You have to dig to find all of his prior media coverage.

This month’s copy of Value Investor Insight magazine pulls some Klarman wisdom out of the archives. The wisdom is taken from the pages of the value fund manager’s 2004 letter to investors of his industry-leading hedge fund, Baupost. Titled “productive worrying,” Klarman talks about one of the key traits every successful investor has and how the average investor can better their investing process by looking to the long-term and worry about the things that matter not the issues they have no influence over.

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Reblog: Hedge Fund Managers Struggle to Master Their Miserable New World

Howard Fischer, wearing a white shirt and khakis, leans back into a window seat at a juice bar in Greenwich, Connecticut, sips a cold-brewed Mexican mocha and shares his angst.

“It’s miserable, miserable,” the 57-year-old manager of $1.1 billion Basso Capital Management says of hedge fund returns over the past few years. “If that’s the normal expectation, I don’t have a business.”

Fischer’s lament and ones like it are echoing through the industry. It’s an existential crisis for former masters of the universe who once prided themselves on their trading prowess. Now they’re questioning their wisdom and their ability to generate profits that made them among the richest in finance.

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Online Trading – Yet another feature on stockarchitect.com

We recently revamped the entire website, as you know by now. It is not just a cosmetic change but we have added new features for the benefit of our users. The whole purpose of the revamp was to add more value to the time invested by the users on the website.

One such feature is Online Trading.

How often have you read about something interesting like a view on a particular stock etc. but then you had to go log in to your Zerodha account to trade? In the midst of this, you receive a call and the next thing you know is that you missed it. Sounds familiar right? Not anymore.

StockArchitect in partnership with Zerodha brings the convenience of trading right into the interface so that you never miss out that important trade even for a split second.

Using the feature is simple.

Let us take a stock say, Bharti Airtel.

In the top middle of the screen, you will the Buy and Sell buttons.

Click on Buy or Sell and you will be asked to login to your Zerodha account.

Voila – you are now on familiar territory. Trade as you would.

Don’t have a Zerodha Account? Help is at hand. You can sign up now.

Keep yourself tuned to this space as we announce new features for our users.

Happy Investing!


Interactive Charts – A new feature on stockarchitect.com

We recently revamped the entire website, as you know by now. It is not just a cosmetic change but we have added new features for the benefit of our users. The whole purpose of the revamp was to add more value to the time invested by the users on the website.

Interactive charts – is one such feature.

How often have you read about something interesting like a view on a particular stock etc. but then you had to go some place else to look up the charts? Since you are away from the machine that had these charts, you missed it. Sounds familiar right? Not anymore.

StockArchitect in partnership with Tradingview brings the convenience of charts right into the interface.

Using the feature is simple.

Let us take a stock say, Punjab National Bank.

To the right of the screen, you will see the link interactive charts

Click on the link and you will be able to see the chart in a new window. The charts are easy and intuitive for beginners, and powerful enough for advanced chartists.

Keep yourself tuned to this space as we announce new features for our users.

Happy Investing!


Sensex ends the week below 27000, Nifty slips below 8,250; IT stocks drag on H1B woes

Equity benchmarks closed lower on Friday, with the Sensex falling more than 100 points amid consolidation as investors remained cautious ahead of quarterly earnings that will start next week with Infosys & TCS. Profit booking, further correction in technology stocks and weak European cues drove the market lower while buying in banking & financials stocks capped downside.

The 30-share BSE Sensex slipped 119.01 points to 26759.23 after hitting an intraday high of 27009.61. The 50-share NSE Nifty fell to hold on to 8300 level, down 30 points at 8243.80.

The broader markets, too, were under pressure with the BSE Midcap down 0.3 percent as about 1532 shares declined against 1185 advancing shares.

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Reblog: How safe is my broker?

Investors are often cautioned about investment risk, market risk, etc. by their advisors and brokers. Investing in a particular asset or any equity share in particular, can give back good returns or, on the contrary, even wipe out the basic value of money that you have put in. But did anyone tell you that the broker himself can also cheat you? He can go bankrupt or be a fraud?
Not only have the small ones, but big investment firms have also given their clients a nightmare. If viewed from the brokerage company’s perspective, it is doing a business purely. Profits are their primary motto. And your money, except from the brokerage charges, is a secondary element for them.
So, how can a stock broker deceive you?

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