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[Newsletter] Gujarat PSU stocks zoom, Market Overview and Things we are reading!


🔆 Saturday Coffee Newsletter

  • Market Overview: Top Stocks & Asset Classes
  • Good Reads: 5 good reads on investing & finance
  • ELI 5: Gujarat PSU stocks on fire!
  • Pop Quiz: Answer and win a cool prize!

What’s up with markets? 📉📈

Nifty 50 gained 3% this week and is now only ~4% away from its all time high. Good times indeed for stocks. Although, Gold and Silver didn’t do much this week but they’re already having a fantastic run since the last 18 months. USD is stronger as ever and nearing the 82 mark.

[Newsletter] Gujarat PSU stocks zoom, Market Overview and Things we are reading!

In this strong market, PSU banks had yet another fantastic week with 7.3% gains followed by Realty and IT Index.

[Newsletter] Gujarat PSU stocks zoom, Market Overview and Things we are reading!

Gujarat PSU stocks on 🔥

Gujarat government announced a proposal for three things on Tuesday (April 25), about the public sector companies owned by them:

  • They should pay 30% of their earnings after tax as dividends. Or 5% of net worth, whichever is higher.
  • If they have more than 1000 cr. in the bank, and a networth of 2000 cr. or more, they must do a buy back.
  • Oh, under some strange and irrelevant conditions, the companies must give bonus shares or do a stock split

Stocks today that have “Gujarat” in their name are hugely up the next day (April 26). Simply because oh, some news has come, and it sounds good.

[Newsletter] Gujarat PSU stocks zoom, Market Overview and Things we are reading!

On a weekly basis the stocks fired up like a rocketship with a belief that this policy will tremendously reward the shareholders of these PSU.

But, will it?

Read: Will forcing PSUs to pay dividends make them more valuable?

What we are reading 📝

  • Summary of a research paper on Fact, Fiction and Factor Investing published by AQR in Jan 2023. A must-read for any investor trying to understand quantitative factor investing better. Read: Fact, Fiction and Factor Investing
  • As stock pickers you will accumulate battle scars. Especially in micro and smallcap stocks where the spectrum of outcomes are wider – more violent. Read: Battle Scars
  • Discover the true value of an emergency fund, learn effective saving strategies, and debunk common myths about how much you should really set aside for life’s unexpected events. Read: How Much to Save in Your Emergency Fund: A Comprehensive Guide
  • Things you can learn from Howard Marks. Read: Wise Words from Howard Marks
  • Knowing how to analyze a stock is crucial to make good investment decisions. The best investors in the world use a strict and rational framework to analyze stocks. Read: How to analyze a stock


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