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Team Multi-Act

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Is It a Good Time to Invest in Emerging Markets?

By | What We Are Reading | No Comments

Are you wondering why you should invest in emerging markets? Here’s something to consider. For long-term investors, a unique opportunity presents itself in emerging market equities because of the rare combination of cheap equity valuations, depressed currencies, and positive momentum in equity prices and economic fundamentals.

Discover how a building-block approach to valuation creates forward-looking returns rather than the idea that it’s too late to invest, and how depressed currencies show a projected real return of 3.9% a year over the next decade. In addition to this, EM stocks are trading cheaply and showing robust 12-month price momentum.

The classical British economist David Ricardo’s advice to investors to “cut short losses” and “let your profits run on” couldn’t be more relevant. While the Trump election was forecast to leave a trail of destruction, this article delves deeper into why it is better to invest in attractively valued emerging market assets even in the midst of fear and uncertainty, which are making a slow exit. 

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Edelweiss Journal: Reflections on Trump’s America; The Challenge of Preserving Capital within the Financial System

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This issue of the journal from Edelweiss Holdings has two brief essays on relevant issues that hold value for any investor today.

Reflections on Trump’s America unveils historic perspective on the patriotic and business-wise President-elect Donald Trump. Within the context of financial markets, his election has received jubilation worthy of the second coming of an industrial revolution. Yet, even as Mr. Trump’s businesslike ideas should be welcomed in a nation that has veered further and further into an economic unknown, this essay shows how there is little reason for the boundless euphoria of anticipated greatness.

The Challenge of Preserving Capital within the Financial System by James Watson is an essay that makes for compelling read. While touching on myths attached to liquidity and the troubling imposition of control on individual financial affairs, this essay makes a point that has been echoed by Multi-Act; when credit implodes – as it must – only HQ stocks will have any sort of bid, as market participants realize that the inherent strength of HQ stocks were obscured with the hype attached to liquidity and credit mis-pricing.

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Macro

Role of Network Effects and Critical Mass as mental models in Business

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Replete with examples, Tren Griffin, a senior director at Microsoft, explores two powerful mental models: Network Effects and Critical Mass. Drawing on years of experience as a businessman for one of the world’s most renowned tech companies, Griffin offers practical expertise with adept and clarity. In this article, Griffin explains how companies can use these two mental models as a protective moat. 

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Macro

Don’t Confuse Cheap with Value

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There are just two ways to behave as an investor,

One requires buying cheap, selling at a profit, and repeating the process. This requires making hundreds, sometimes thousands of smart investment decisions in the course of a career. To make many smart decisions is too hard.

The second way to invest just requires one decision: buy a great business. This way is to adopt a strategy that requires being smart only a few times. Almost no one does this despite the obvious advantages. It requires the right investor base.  This article shows you how. Read More

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Value stocks and Patience – may be the only way to turn around Bleak Returns

By | What We Are Reading | No Comments

It is a terrible time for investors. With bleak returns seeming to be the norm across the globe in this tumultuous stretch, they are relying on varied valuation metrics in hope of enhancing dividends. This piece discusses the best valuation metrics to gauge whether a stock is “cheap” or “expensive” and also provides an insight into Andrew Lapthorne’s views on why modern-day investors have to be brave to hold on to value stocks and be prepared to lose money for some time.  Read More

Macro

Why India’s Currency Debacle is a Lesson for Westerners

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As Indian citizens struggle with the inevitable teething troubles that the demonetization episode has brought upon them, it is important to know that this shouldn’t seem like a remote threat to Westerners. It establishes a significant point – state-issued paper currency exists only at the acquiescence of the State. One verdict can make it totally worthless. Read on to know why this Indian chapter must be seen as a lesson (read: warning) by the Western civilization and also why the value of gold cannot be debased by government decree. Read More

समतोल गुंतवणूक- दीर्घकालीन परतव्याची गुरूकिल्ली

By | Podcast | No Comments

समतोल सांभाळला, कि गोष्टी व्यवस्थित जुळून येतात. एखाद्याला कितीही गोड किंवा तिखट आवडत असलं, तरी फक्त त्याच गोष्टीचा अतिरेक केला तर पुढे त्रास हा ठरलेला. आयुष्याच्या सर्व अंगांमध्ये समतोल सांभाळणारे आपण, आपल्या कष्टाच्या कमाईच्या गुंतवणुकीमध्ये तो पाळतो का?

सर्वसाधारण पणे गुंतवणूक हि चार प्रकारांमध्ये मोडते, स्थावर मालमत्ता, दागदागिने, बँकेच्या एफ डी किंवा रोखे, आणि शेयर मार्केट. बऱ्याच वेळेला असं दिसतं, कि गुंतवणूकदार एक-दोन प्रकारांमध्येच बहुतांश संपत्ती गुंतवून असतात. पण दीर्घकाळाचा विचार करता हे अजिबात योग्य नाही.

अचानक पैश्यांची निकड लागली तर ते उभे करता येतील का? उद्या अति महागाई आली किंवा मंदी आली तर काय? कुठेही पैसे गुंतवताना हे विचार मनात असतातच. आजच्या जागरूक गुंतवणूकदाराला भविष्यातले जे प्रश्न भेडसावताहेत, त्याची उत्तरे ह्या गुंतवणुकींच्या गर्भात दडलेली आहेत.

ह्या प्रश्नांची उत्तरे तज्ञांकडून जाणून घेण्यासाठी जरूर ऐका हे मराठी सादरीकरण – ‘समतोल गुंतवणूक’. भविष्याचे निर्णय घेण्यासाठी आजची अठरा मिनिटे जरूर घालवा, कदाचित हि अठरा मिनिटे तुमची सर्वात उत्तम गुंतवणूक ठरेल. Read More