Since SBI IPO is on its way a lot of data is being cut in different ways from RBIs reporting to make it look nice eg
H bank has max cards in force
X bank customers do Y txns per month
A bank's customer's have B avg ticket size per swipe
2/n
There is a concept of 'activation rate' of a cards portfolio. If there are X cards in force it doesn't mean X cards get swiped. Activation rates are not made public. But on digging deep into some card network reports you will get an idea.
3/n
Debit card and credit card portfolios have very very different activation rates..sorry activation rate is what fraction of cards in a portfolio does the card get swiped/dipped.
4/n
There is a concept of interchange for merchant txns and a concept of reverse interchange for cash withdrawals. Do read about this.
5/n
Terms like Merchant discount rate, merchant service fee, issuer interchange, acquirer fee, processor fee structure, instrument discount rate etc. have been not discussed in all papers and notes I have read. The ecosystem is important. Not just one aspect of this.
6/n
RBI regulations around issuance and acceptance across different instruments should be looked at.
Not just India but what is the trend around the world.
7/n
Having said that I have not looked specifically at SBI financial statements and projections. But leaving that aside this will be a good play on the financialisation theme.
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Make a consolidated mail for them. And tag that mail in their inbox. For instance my wife has a tab "DV" & color code it. Do this for your sibling & parents if possible
3/ MY NSDL CAS statements get forwarded to my wife and her statement to mine. I have maintained sporadically though CAS statements in a google drive folder to which both of us have access. As investors your close ones should know every single investment you have.
Short notes from the book 'Dead Companies Walking' by Scott Fearon.
I think this is a must read book for all investors to understand when to stay away from a company even if you don't want to short it.
2/n Things go wrong more often than they go right. Failure is actually a natural - even crucial - element of a healthy economy. And the people who are willing to acknowledge that fact can make a hell of a lot of money.
3/n One of the most enduring & important business traditions is failure
1/n A look at the oldest companies & earliest traded stocks
The 1st stock exchange was established in 1602 in Amsterdam. It was made by the Dutch East India Company, chart below
The south sea bubble of 1720 can be seen. The company lasted under 2 centuries & finally went bankrupt
2/n Another company traded in Amsterdam was The Dutch West India Company which also went into bankruptcy in late 1700s. In the chart below we can see both the Tulip mania & the South Sea Bubble.
3/n But these two companies are no match for the oldest companies which exist till today. They could have merged. Some are listed via the new parent too. The types are:
2/n Being a govt doctor working on the field most of the time he rarely put in effort to do any detailed analysis. He tried his hand at a business & failed miserably. Went back to job.
His learning - give money to people who can run businesses efficiently.
3/n You can never create a business in 1-2 years. It takes decades. So why do you think you will make returns in a few months? He bought stocks with the expectation that for 5+ year nothing would happen.