Browse Tag by shares

An interesting perspective…


By 1999, 49% of Americans Owned Equities, this Percentage was just 3% in 1980 .These 20 years was also the Time when Warren buffett, Paul Tudor Jones, George Soros were Created.

🇮🇳 In 2017 only 3% Indian owns Equities..


In 1979, the BSE Index was 100.*

Today it is over 33,000.

That is a return of over 17% per annum.

If we were to add back dividends received and assume that they were to be reinvested in the BSE-30 Index, then the return is nearly 20% per annum.

Over the past 37 years, the Indian economy has grown by a real rate of GDP of 6.3% on average.

Inflation, as measured by the CPI, has been in the 8% range.

Add the two together and you get 6.3% + 8% = 14.3%

Let’s round that down to 14%.

This is the approximate rate of growth of activity in the overall economy, taking into account the level of prices of various goods and services at that point in time. This is also called the nominal rate of growth in GDP.

So, the economy grew by 14% per annum for the past 37 years and the BSE-30 Index grew by 20% per annum.

Now if, over the next 33 years, the Indian economy is to grow by, say, 6% per annum and inflation is to be, say, 5% per annum then the nominal rate of GDP for the next 33 years will be = 6% + 5% = 11%.

If a 14% nominal rate of growth in the economy between 1980 and now resulted in a 20% average per annum growth in the Index over the past 37 years, then what should a 11% per annum growth in nominal GDP result in over the next 33 years – till the year 2050?

Sensex 4,076,470 doesn’t seem extraordinary now, does it?

“If the bull market journey is from Mumbai to Delhi, we have probably reached only Borivali”
– Rakesh Jhunjhunwala


Pearls of Financial Wisdom

1) Bonds are for storing wealth and equities are for creation of wealth.

2) In my opinion, the biggest asset one can have is zero debt.

3) The greatest discipline in personal finance is living below your means.

4) As Ben Carlson says, emotions cannot be back tested. That’s why past bear market always looks like opportunities and future ones scary.

5) Early financial independence and early retirement are completely different. To me, the former is a blessing and the latter is a curse.

6) Don’t think how it would have been if you’ve started 10 years ago. Start today and visualise how you would feel 10 years from now.

7) The neighbourhood we live determines our life style & spending. Need to be careful in choosing one which matches our goals and personality.

8) Paying minimum balance regularly on credit card is the maximum sign that you’re getting into debt trap.

9) Many are long term investors till next bear market.

10) Don’t take aggressive bets. Take measured risk. Remember one blunder can push you back by a decade or more in terms of wealth.

11) Big money can be made through high savings, wise investing and lots of patience.

12) One sign of progress in individual investor’s portfolio is no churn or very less churn.

13) Trying to get rich fast is a foolproof way to lose what we have.

14) Losing opportunities is far better than losing money. Don’t invest in fads.

15) ‘Making as much money as quickly as possible’ is not an investment strategy. Unfortunately for most of us that is the strategy.

16) Aggressive strategy cannot be a substitute for high savings. Save high and take moderate risk than saving less and taking high risk.

17) The day we realise not losing is as important as winning; we would stop blindly chasing returns.

18) Good periods are more than bad periods. By not timing, though we go through bad periods, do not miss even a single good period.

19) We’ll stop looking for quick money the moment we consider stocks as businesses and realise that our wealth grows in line with business growth.

20) There are periods of high returns, low returns, no returns and negative returns. We need to go through all these to get long term returns.

21) Listening to market forecasts is not only useless but can be very harmful too if you start acting on them.

22) The hard truth is only around 3% of our population are in a position to aspire for financial independence. Don’t waste this rare privilege.


The PE & VC Game : Companies with high private equity shareholdings

I think we can capitalise on the brains and analysis of PE Funds and make money.

Warburg Pincus LLC
Capital First Ltd

Nalanda Capital
MindTree Ltd
Voltamp Transformers Ltd
Carborundum Universal Ltd
Ahluwalia Contracts (India) Ltd
Just Dial Ltd

Kohlberg Kravis Roberts & Co. L.P.
Max Financial Services Ltd
Magma Fincorp Ltd

Rabo Equity Advisors
Prabhat Dairy Ltd

Baring Private Equity Asia
Manappuram Finance Ltd

WestBridge Advisors
Dr. Lal PathLabs Ltd
Olympus Capital Holdings Asia
Karur Vysya Bank Ltd

The Carlyle Group
Edelweiss Financial Services Ltd

SAIF 41.65
Manpasand Beverages Ltd
Blue Star Ltd

Edelweiss Financial Services Ltd
Karur Vysya Bank Ltd
IPCA Laboratories Ltd

India Value Fund Advisors
Syngene International Ltd

Norwest Venture
Thyrocare Technologies Ltd
Snowman Logistics Ltd

Sequoia Capital
Just Dial Ltd
Ujjivan Financial Services Ltd

Helion Venture
Equitas Holdings Ltd

Indian Direct Equity Advisors
Time Technoplast Ltd


Playing the Game….

Got addicted to  Stock market game called StokMark on the BBC Micro computer.

1994 Harshad Mehta Era
Invested and followed the markets like hell, was in 10th Std invested uncles 40k, ran a small fund in school, lost most of it primarily in ITC Agro, spent 2 years kinda repaying it.

1999-2000  Ketan Parekh Boom
Din’t participate in the Rally, watched the game from the boundary & besides had no money to invest.

Rally with no name, Lets call it the Rakesh Jhunjhunwala Era or India Shining Rally.
Started investing when the Index was at 3000, was part of the Dot Com Burst invested mostly in Penny stocks & Financial Technology (@20) , Index fell to 2500…Lost a bit initially

Did some Program Trading with a Friend at a Stock Broker, did volumes of 4 cr.. due to some wrong calculations and bugs lost around 50k

Cleared entire portfolio at 6000,  7000, 9000..before every minor correction, Got lucky with Financial Technology, Sold it &  invested in Real Estate just before the Property Rally.

Moved all investment to Commodities, Lost 1.5 lakhs moved back to Stocks when index was at 9000.

Removed a big chunk in 2007 for wedding and repaying of Credit cards.

Didn’t sell portfolio when the index hit 21000, moved to a new job, sold some stock to pay credit card debts, continue to hold most of it ( Compulink, Forbes & Mcdowells), Portfolio down by half.

I think I can wait for a year or two 🙂

I still think Equities are still the best & fastest legally one can make large sums money and aim at fulfilling their dreams quickly , this is primarily what drives millions in India to invest inspite of the dangers and risks both known and unknown…

Today people might say WTF, but when a few people start investing and a few matkas happen , the Mania will start all over again with a new idea, new names , new strategy, new players etc etc ..

Like the Old Lady of BoriBunder says “What a Game, Majaa aaya na”