We observed questionable Corporate Governance practices while analyzing a company operating in Indian media industry. Historically, this company has had a strong dominance in its core market which aided high margins and strong cash flow generation. However the minority shareholders have got a short end of the stick due to management’s favorable treatment to the promoter group. In this blog, we throw light on some of the company’s questionable activities and practices. Read More
The month of October 2018 saw a stunning move by Hungary’s central bank. The Magyar Nemzeti Bank (MNB) purchased 28.4 tonnes of monetary gold holdings in physical form. This marks a massive jump in the central bank’s gold reserves, from 3.10 tonnes to 31.5 tonnes, in a matter of weeks. Additionally, the gold has been repatriated to Hungary, which joins a list of other European nations like Poland who seem to have embarked on a “Gold Rush”, though nothing matches the scale at which Hungary has increased the possession of its precious metal holdings.
Such moves seem to reaffirm the fact that gold is one of the safest assets, and how it can play a key role in stabilizing, and also confirms how nations are building confidence by shoring up gold reserves.
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Given a choice of two stocks which one would you choose? A trusted source says choose Stock A but you’re really not sure since both stocks are expected to rise in price; both charts show similar formations, and recent buzz on both stocks is all positive. Which one? How do you choose? Go with your gut or look at some additional factors?
Charles Rotblut, CFA and Editor of American Association of Individual Investors (AAII) shares some resourceful tips for exactly such a time. This article offers a practical guide to bettering your odds regardless of whether you’re a value investor, a growth investor, a momentum investor or a chartist.
Ultra High Net worth Individuals (UNHIs) and High Net worth Individuals (HNIs) know that successful investing entails diversifying their assets and building portfolios that can handle any form of turmoil in the markets. The secret to this is to build portfolios with assets that are contrary to each other to a certain extent. Prashant Trivedi, Chairman of Multi-Act Trade & Investments Ltd. states “Essentially the way in which the portfolio is constructed is, you give one-fourth to different asset classes – one-fourth to cash (and/or gold), one-fourth to fixed income, one-fourth goes into equity and one-fourth is given to real estate”.
There are gurus and there are finance gurus. Most people approach the markets like a maze or a puzzle expecting to be confused and overwhelmed losing their way in the many alleyways and avenues in the investing world. There are some who are more enlightened when it comes to navigating finance with fresh approaches and successful strategies that serve as guides for others. We’ve put together what we consider to be some of the best investment quotes from these experts! Read More
“The stock market is the story of cycles and of the human behavior that is responsible for overreactions in both directions.”
– Seth Klarman.
When Warren Buffett famously stated that investing was simple but not easy, he meant that the rules we ought to use in order to make good investment decisions are easy to learn but actually adhering to them is difficult. Disregarding rules while investing cannot be attributed to open rebellion but can be ascribed to the basic human survival instincts that have been ingrained in us since time immemorial. Certain traits favored in the process of Natural Selection and helped our ancestors survive in the jungle actually do not help in the market.
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Robert L. Rodriguez, former managing partner at FPA, a Los Angeles-based asset manager who retired after more than 33 years of service, shares his take on:
- Reversion to the mean
- Factors driving the flow of mutual fund assets to passive strategies
- Under-performance of active managers and the potential bubble
- Destabilizing influences of ETFs and index funds that are brewing the perfect storm
- Concerns about “smart-beta” products for investors who want a value-oriented portfolio
- How he is investing his personal assets
Rodriguez’ insights are what every investor should read.
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It is the most devastating trick investors play on themselves. Realizing that the rise and fall of bubbles does not negate the effectiveness of diversified long-term investing is one of the most powerful understandings an investor can have. And one of the hardest things an investor can do is maintain conviction on a long-term strategy when there’s a changing of the guard between one game and the next.
But a lot of the emotions — excitement, greed, fear, and frustration — stem from not knowing what bubbles are or why they’re happening which is what Minsky’s financial instability hypothesis explores.
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With slightly higher yields, subprime auto-loan backed securities were grabbed by institutional investors that manage other people’s money.
Now, almost all indicators of auto lending are flashing red. Negative equity has hit an all-time record. Why is negative equity such a growing phenomenon? Because of the toxic trifecta in the auto industry, now happening. Read on to delve deeper into the insanity of the United States’ auto lending segment.
Gold has been in use as a form of currency or a high value commodity for at least three millennia. Records show that India has had an intense relationship with this glittering metal for almost as long. The picture of an Indian bride is incomplete without her being weighted down by masses of gold jewellery and tales of palaces being inlaid with gold leaf abound.