Category

Investment Insights

option-3

Mutual Fund Investing: Simple but Not Easy?

By | India Equity, Investment Insights | No Comments

Dalbar, a Boston based analytics group has been studying the US markets for over 20 years and they have been publishing reports which compare the performance of an average Mutual Fund investor as compared to the Market Indices. Important point to note here is that the performance calculated was for the investor in the Mutual Fund and not the Mutual Fund itself which is more readily available.

Read More

bigger

Economies of Scale: An Analytical Framework for Assessment of A Firm’s Competitive Advantage

By | Global Equity, Investment Insights | No Comments

This article originally appeared on Advisor Perspectives.

“The moat in a business like our auto insurance business at GEICO is low cost. I mean people have to buy auto insurance, so everybody’s going to have one auto insurance policy per car basically, or per driver. And…I can’t sell them twenty…but they have to buy one. Read More

Wall_post1

The 6 Sources of a Firms Competitive Advantage

By | Investment Insights | No Comments

This article originally appeared on Advisor Perspectives.

As we have discussed previously, sustainable competitive advantages (SCAs) are a key characteristic of high-quality businesses. While SCAs are good indicators of business quality, not all competitive advantages are created equal.  The strength of the competitive advantage and the risks that the business needs to protect itself against are largely dictated by the type of competitive advantage that the business possesses. Read More

BlogThumbnail_StrikeGold_Final

Strike Gold

By | Gold, Investment Insights | No Comments

The recent decline in the price of gold has led many market participants to question the investment value of the yellow metal. Much has been spoken and written about the relatively poor return to be earned from gold. We think investing is NOT an exercise in bragging rights about which asset class has higher returns in the past and are therefore assumed to hold in the future. Read More

Why-Most-Quantitative-Investing-and-Trading-Systems-Fail1

Why Most Quantitative Investing and Trading Systems Fail

By | Investment Insights | No Comments

This article originally appeared on Advisor Perspectives.

“Invert, Always Invert.” – Carl Gustav Jacob Jacobi, German Mathematician

“Hundreds of studies have shown that wherever we have sufficient information to build a model, it will perform better than most people.” – Daniel Kahneman (as you read this statement, don’t forget to consider the implication of the word “sufficient”)

“Roger Federer plays tennis using Wilson racquets. I use Wilson racquets. Does that make me Roger Federer?” – Paraphrasing a friend of ours. Read More

watering-plant

We Are Happy To Score Centuries With Just Ones And Twos And Not Necessarily With Sixers

By | Investment Insights | No Comments

Prashant K Trivedi, Chairman of Multi-Act Trade & Investments Ltd., talks about his investment philosophy, especially for family office investors with long term patient capital, and how he constructs his portfolio. His investment philosophy of giving appropriate weightage to quality, valuation and price momentum has helped him offer capital preservation and good returns to the investors. Read More

Bounded rationality investment decision making

Bounded Rationality, Unbounded Confidence

By | Behavioral Finance, Investment Insights | No Comments

This article originally appeared on advisor perspectives.

“The capacity of the human mind for formulating and solving complex problems is very small compared with the size of the problems whose solution is required.” – Models of Man, Herbert A. Simon

“Boundedly rational agents experience limits in formulating and solving complex problems and in processing (receiving, storing, retrieving, transmitting) information.” – Oliver E. Williamson citing Herbert A. Simon Read More

the-Warren-Buffett-Way

The Warren Buffett Way: High Quality Stocks in Emerging Markets

By | Investment Insights | No Comments

This article originally appeared on advisor perspectives.

“Shares are not mere pieces of paper. They represent part ownership of a business. So, when contemplating an investment, think like a prospective owner.” – Warren E. Buffett

“It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price.” – Warren E. Buffett Read More

Portfolio Management Services (SEBI Registration No. INP000002965) are offered through Multi-Act Equity Consultancy Private Limited (CIN: U67120PN1993PTC074692), which is a wholly-owned subsidiary of Multi-Act Trade and Investments Private Limited; Investment Advisory Services (SEBI Registration No. INA000008589) are offered through Multi-Act Trade and Investments Private Limited (CIN: U65920MH1997PTC109513).