A master thread on different behavioral biases that we go through while #investing. Check out this thread and understand how they will affect your investing journey! Do give it a retweet if you like it and follow us for more such insights. Thank you! #may27capital
As a part of "behavioral biases in #investing ", today we will talk about Sunk cost fallacy. Time for a short thread 🧵
Imagine u were hungry and in mood for some good food. So u order a burger and pizza. After eating the burger and 2 slices of Pizza u feel full. But to justify the price u paid, u forcefully finish the pizza. That's Sunk cost fallacy. Enough of food coma. Lets get into #Investing
Sunk cost fallacy in #investing can be defined as the tendency of people sticking to their investments just because they spent a lot of time, efforts and money on them. We keep adding more to losing investments just because we already invested a lot.
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India is world's 3rd largest consumer of electricity. It's per-capita power consumption was 1208 kWh in 2019-20 compared to the world average of 3,260 kWh. Over the last 8 yrs, consumption has reported consistent growth from 914 kWh in FY13 to 1208 kWh in FY20 an increase of 32%
India accounts for 18% of world population but only 6% of world's primary energy. This is where things get interesting. Renewable Energy is playing a pivotal role in transition of India to a power surplus country.
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The share of Renewable energy in overall installed capacity has more than tripled from 11.8% in Mar-2015 to 37.9% by Aug-2021. Govt has set a target of 175 GW installed capacity by 2022 for renewable electricity generation. The current capacity stands at 100GW.
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There is a lot of buzz around the likely issue of bonus shares by #IEX . Except for offering tax efficient dividend to existing shareholders, issue of bonus shares add little to no value to the investors who want to make a fresh buy. Here's why. A short thread 🧵!
Issue of bonus shares can be considered as a tax efficient way of rewarding shareholders by paying dividend in the form of bonus stock. The bonus shares are issued from the reserves of the company. They are issued in the ratios of 1:1, 2:1 etc.
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The CMP of #IEX is 798.45. Imagine you are an existing shareholder who holds 10 shares of IEX. The value of your holding is 7,984 Rs approx. Let us assume that the board decides to issue bonus shares in the ratio of 1:1.
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