This week: A new (but definitely not unknown) stock enters the CM Focused Portfolio, a new IPO on the cards, a simple framework for investors to size their positions, how investors can pick between Mutual Funds and PMS and more…
Markets this week 🚦
The markets witnessed a sea of green this week led by Cement, Media, and Service sectors while the Metals continued reverting to mean after the recent run-up.
Size up that opportunity? 📝
Good traders worry all the time about blowing up. So they cap their exposure to any single position. Most active investors have the opposite problem. They tend to be under-allocated to their best investments.
How much to allocate to active positions deserves some attention. This post looks at a few common-sense rules about position sizing for investors.
Read: Common sense position sizing for investors
Reliance seems to be ready to 🚀
We encapsulate the business model, impact of lockdowns, recent stock performance, and a comprehensive valuation checklist for this Oil to Telecom behemoth that seems to be warming up for the next big leap.
[Premium] Read: Reliance: Counting on Jio & Retail to drive growth
A unique business is about to list 💡
Medi Assist, the largest Third Party Administrator (TPA) in the country, has filed a Draft Red Herring Prospectus (DRHP) for an upcoming IPO. The Rakesh Jhunjhunwala backed company is offering 2.8 Crore Shares which is 40% of its Equity for sale.
We comb through the prospectus to get the specifics of the TPA business and ends with some questions for management.
Read – Medi Assist IPO: Riding the Health Insurance Wave
The School of Slack 😎
The most insightful discussions from our slack community this week [Premium Access]
- What makes the most sense for an individual investor – Investing via PMS Vs Mutual Funds Vs Do-It-Yourself approach. [link]
- A good discussion on how to passively allocate money towards debt. We discuss bonds, mutual funds, and GSecs. [link]
- One of the stocks from our Focussed portfolio released earnings report and we share a quick update on the same [link]
- The puzzle is to determine which day the market will trend. While we solve this, we get a trending thread. [link]
- One of our friends in the community has put together numbers for us showcasing the yields for Embassy REIT. [link]
Links we like ✨
In this section, we bring you interesting links from across the internet
- Kris Abdelmessih writes about Value an essay which encompasses the basic definition of value and tries to fit it in the current market context. It is then the title of the essay pops up. Read: Why Investing Feels Like Astrology
- At a time when cryptocurrencies are going through a shakedown, the global Federal Reserve Chair Jerome Powell is exploring all options towards launching a digital dollar. Read: Powell Seeks Input as Fed Digs Deeper Into Digital Currencies
- We all know that US economy is driven by debt but how much is it? Well, that number has doubled in the last 18 years! Here’s an insightful article with great visualizations explaining the data. Read: The State of Household Debt in America
- The biggest stand-off between two famous protagonists of capital markets. I’ll let the headline do all the talking – Michael Burry of ‘Big Short’ fame takes on Elon Musk; bets half a billion dollars against Tesla
Join, probably, the best investment community in India.
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That’s all folks 🤘
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