Reblog: Seeking stocks that beat market returns? Apply these 2 filters


This is an interview with Saurabh Mukherjea, author of the book ‘The Unusual Billionaires’. The original post appears here on moneycontrol.com.

Saurabh feels the buy-and-hold approach to investing holds true even as volatile financial markets and disruptive changes across sectors are questioning its validity.

Consistent revenue growth combined with a consistent return on capital employed: if a company has been delivering on these two parameters for over ten years, then look no further. That, in effect, is the theme of Saurabh Mukherjea’s second book ‘The Unusual Billionaires’. The book says that a portfolio of companies which satisfies both these criteria will invariably beat the market over the next decade and more.

Mukherjea, whose day job is CEO, Institutional Equities at Ambit Capital, feels the buy-and-hold strategy for stock investing holds true even as volatile financial markets and disruptive changes across sectors are questioning its validity.

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Reblog: 40,000 times in hundred years = 11.3%


This hard hitting article is written by D. Muthukrishnan (Muthu). The original post can be found here.

I was reading this article written by Vivek Kaul.

A bungalow in Nepean Sea Road, South Mumbai was bought for around Rs.1 lakh in 1917. It is now going to be sold for Rs. 400 crores. The value of the bungalow has multiplied by whopping forty thousand times in 100 years.

Real estate is always discussed in terms of how many times it has multiplied. Rarely anyone in that industry calculates XIRR or annualised returns. 40,000 times in 100 years when expressed in terms of XIRR is 11.3%. Not a bad return at all. But nowhere as glamorous as saying 40,000 times.

Many tell me something like that the property they bought 25 years ago has multiplied by 10 times. Sounds fantastic. But the annualised return works out to 9.6%.

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Luck smiles on Tata Motors, Trident as Wipro wilts


The flower of optimism wilted on Dalal Street on Friday as Wipro hit its lowest level in more than two years.

The benchmark S&P BSE Sensex shed 54 points to end the day at 27,782. The 50-share gauge Nifty50 closed at 8,572, lower by 19 points.

Shares of Wipro tumbled to their two-year low during the session. The stock plunged another 3 percent after a 3 percent decline seen on Thursday. The company had posted weaker-than-expected numbers for June quarter and investors see it wilting under the pressure that the IT giants are facing this year.

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Reblog: How long does it take to discover Welspun India’s new worth?


The original article appeared in LiveMint on August 26, 2016 and can be found here.

In four trading sessions, Welspun India’s market valuation came down to Rs. 5,700 cr. If there were no circuit filters, we would have known this within minutes on Monday.

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Late last week, Target Corp. said it will end its business relationship with Welspun India Ltd, stating it had received bedsheets where Egyptian cotton was substituted with a cheaper variant.

When stock market trading resumed on Monday, it was clear Welspun India wasn’t worth the Rs.10,370 crore valuation it enjoyed until the prior week. But how much was it now worth?

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Reblog: Market Strategy and the Biggest Risk in Stocks in times of high valuations


The original post is written by Mastermind, Sanasecurities and is available here.

Over the last few weeks, markets have beaten all resistance barriers and have defied the very notion of value. Those waiting for a correction sometime back have now jumped in hoping for newer all time highs.

Anybody who believes in value may not find much for the taking. Certain I am however that many old school value buyers are neck deep in stocks right now. Perhaps for the right reason given the enormous liquidity coupled with strong news flow both domestically and from international markets.

Markets are risky – more so at the kind of valuations they are trading at right now. Nevertheless, from positive earnings, passage of GST, U.S. Jobs data and FEDs almost certain stance of maintaining interest rates, everything looks positive.

If you are already invested, in all likelihood you would have made money over the past 2-3 months. The key question: If you are not invested, should you jump in now?

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Thank you, Thank you, Thank you 15000 times over


15000 Thank yous

A Chinese philosopher, Lao Tzu (not Confucius) so rightly said, “A journey of a thousand miles begins with a single step”.

Somewhere in 2010, what started as just another idea, soon developed into a web portal. A portal where people could get real-time views of the people who matter and about the scripts they wanted to gather information about.

Just last week, we hit 15000 users! And as we write, the number has already crossed 15200. While we would like to thank each one of you personally, this, honestly, is a herculean task. This post is our effort to reach out to each one of you and say thank you. We are well and truly humbled by your support, without which, we would not have been able to reach this milestone.

From the team at StockArchitect, here’s to more information, ideas and investing in the years to come. Exciting times ahead as we are bringing in new features including a complete revamp of the website. Should you have any suggestions, please send them to us online. Rest assured, we are listening.

Please follow us on other channels to get the information and a dash of investing humour too.

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Thank you once again.

The StockArchitect Team


Reblog: Goods and Services Tax will transform Indian economy


The original article appears in the Khaleej Times and is available here.

Building a consensus and getting all political parties on the same page was the biggest hurdle.

A uniform Goods and Services Tax (GST ) will soon be a reality in India following the passage of constitutional amendment bill in its upper house of Parliament on Wednesday. The bill now allows the central government to frame law for a unified tax regime in the country for most products and services and do away with as many as 17 indirect taxes prevalent at the central, state and concurrent levels. As of now, taxes are fragmented along states and push costs up by 20 to 30 percent.

Building a consensus and getting all political parties on the same page was the biggest hurdle. Now, it is just a matter of time, more discussions and debates, and ratification by the state assemblies before India will be able to introduce a uniform tax and join a league of more than 160 nations that enjoy a single tax regime.

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Sensex, Nifty consolidate; midcaps at record high, Tata Steel up


Markets consolidated with midcaps at record high. The Bank Nifty closed at its highest level in the last 17-months high. The Sensex was down 46.44 points or 0.2 percent at 28077 and the Nifty was down 6.35 points at 8666.90. About 1480 shares have advanced, 1237 shares declined, and 182 shares are unchanged.

In stock specific action SBI remained on buyers’ radar gained 4 percent as investors gave a thumbs up to its merger ratio. All SBI associates including State Bank of Mysore, State Bank of Travancore and State Bank of Bikaner and Jaipur jumped.

BHEL, Tata Steel, HUL and Cipla were other top gainers while Coal India, TCS, Lupin, Sun Pharma and M&M were losers in the Sensex.

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Reblog: 3 Habits for Successful Investing


This is a post written by Mastermind, SanaSecurities. The original post appears here.

Let me assure you – No matter how positive (or negative) you are about something, there will always be much which will not be in your control.

There are things you cannot change and things that are totally in your control. The hard task is to understand the difference between the two.

When I started writing this post, the idea was to list in order of importance, habits which set apart successful investors from those who achieve substandard returns. Naturally, such a list would require me to first state who would qualify as a ‘successful investor’ and what’s ‘substandard’.

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Sensex up 293 pts, Nifty ends at 8672; SBI gains 7%, Sun Pharma up


Banks led the major support with the PSU Bank index surging 6.5 percent. State Bank of India and Bank of India rallied 8-9 percent due to stable asset quality in Q1.

Shares of public sector undertaking (PSU) banks have rallied by up to 11% in intra-day trade after the State Bank of India (SBI) and Bank of India (BOI) reported June quarter results in line with the analyst forecast.
and BOI rallied more than 8% each, while Indian Bank, Punjab National Bank, Union Bank of India, Dena Bank, Canara Bank, Oriental Bank of Commerce, Vijaya Bank, Allahabad Bank, Bank of Baroda and Syndicate Bank were up between 3%-6% on the National Stock Exchange (NSE).

The market has ended on a strong note with support from index heavyweights. The Sensex ended up 292.80 points or 1 percent at 28152.40, and the Nifty was up 80 points or 0.9 percent at 8672.15. About 1246 shares have advanced, 1413 shares declined, and 181 shares are unchanged.

SBI was up 7 percent, Axis Bank, Tata Motors, M&M and HDFC were top gainers while Cipla, Infosys, Sun Pharma, Asian Paints and Lupin were losers.

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