🚨One of the soft indicators of a red flag for a healthy insurer is their recent stock market listing + PE holding & lack of parentage.
To demand lofty valuations & constant urge to please the markets - Companies guide high profits & growth !
📛Doesn't work on ground
#insurance Impact
Before listing - possibility of book cleaning 🧹
✅Trying to clear off high risk customers
✅Showing how good they are with better Claims
✅Coming up with super good terms
✅And keeping premiums under check
#HealthTips ##InsuranceTips

If you are a NRI who hasnt filed returns in India for years & who hasn't linked PAN with Adhaar, then please by 31 March 2022 do atleast one of the two tasks :
Please RT for further share this thread 1. If you have an Adhaar, you must link it to your PAN. You can check the PAN Adhaar link status via the easy link below. It works via a desktop
pan.utiitsl.com/panaadhaarlink…

@MotilalOswalAMC annual Wealth creation study is live now. One of the most anticipated financial event in a year. This year is the 25th Wealth Study and kudos to @Raamdeo for his consistent annual efforts to continue this activity.

Having data scientist is a common thing for all data centric businesses. You will be killed if you dont have it. I won't just run behind HDFC Life because for this fact. On the contrary, their tech sucks ! Ask their sales teams. They don't even hv a decent proposal capture app.

https://twitter.com/dmuthuk/status/1312745331193389056

To know about tech, learn from any of the ICICI group companies. Miles ahead. Compared to ICICI Pru, HDFC Life is in stone age. Marcellus may say channel checks, but I am a part of the channel and their customer too. If Tech is the reason, then they got it wrong.

Monthly economic outlook from @KotakMF

Inflation is at an elevated levels. Big spread between India vs US 10 year rate curve. US is
0.25% vs India at 6.117%

A dividend policy of a Company is a vital piece of info which should be considered for an investment decision. Generally a Co in high growth path would like to retain max earnings into the business to fund it's expansion plans. This sounds reasonable provided growth can be seen If a Co doesn't have much of an expansion requirement or churns free cashflow in excess of its expansion, it should distribute the surplus to the shareholders. This is again okay, provided, one is not investing in a Co which has sub par growth and no future capex

Tale of two PMS managers. First is one of the largest in India and avoids punter giri. Good stocks and strong track records. It didn't buy Reliance earlier citing Aggressive Accounting. Bought it in May post International stake sales. Perhaps, will help to align to benchmarks.

https://twitter.com/banyanfa/status/1292389704927567875

Another one is a recent entrant and its founder enjoys immense respect. Sticks to quality. By its Investment process, I believe that it won't buy Reliance till the business is a compounder and it gets free cashflow. Cites it's recent underperformance to not holding Reliance.

wonderful conversation with a person who had surprisingly not seen any financial news related to markets since Jan 2020. He was too busy with his work. He looked into his portfolio and couldnt believe the yo-yo it went through.
Q. If he knew, what would have been his action ? A few more conversations which are worth pondering on. No reactions needed.
2. An individual despite of many requests and reasonings, redeemed all his funds and stopped sips in March end. You can guess what he would be going through now ?

When US / China's GDP increased from $2.5 to $5 trillion, their stock market growth rates were between 17% - 28% annually during this journey (from @MotilalOswalAMC).

For India, it could be a similar story. Our Compounding story is about to be on hyperdrive. Sounds fundamental. The scale of corrections in MidCap & Small Caps is hugeeee. Midcaps still 30% lower compared to 2018 start and Small caps, still 50% lower.

When they bounce back, its to ones guess how much they will catchup to.

Some really interesting data points from #pidilite Investor presentation.

People mostly know their brands - Fevicol, Fevikwik. But many more > See the picture below : Their core brand which is behind the success is Fevicol. The Company is adding variants and premiumization to this Core product. See the different variants of the same product to address all forms of adhesive requirements. Latest entrant is a Spray.

A funny discussion with an intelligent direct investor who is being attracted over historic returns
"The returns of a specific fund has be a linear 45 degree northward movement of 8% per annum. It is much better than any other option currently available in the market" Poor chap doesn't realise that it is historic return of liquid funds and that the 45 will become soon 20 degree upward chart with barely 3% return. Post that he would be extremely unhappy and will blame every one put there, save himself.

A v interesting data sheet from Mint on how returns from different assets have behaved since 2010 - a good enough time frame in the world of rapid disruption. My notes in this thread
.. (1/n) 1. Sabka time aayega - Each asset class ends up coming to the top slot and then after that sooner or later goes right at the bottom.

2. Gold - it has a negative correlation, i.e. if Gold is in extreme bull markets, Indian markets are not doing well.

.. (2/n)

Thread
Pearls of wisdom from the book Intelligent Investor

"the speculative public is incorrigible. In financial terms it cannot count beyond 3. It will buy anything, at any price, if there seems to be some 'action' in progress. It will fall for any company identified with(1/n) 'franchising', computers, electronics, science and technology, or what have you, when the particular fashion is raging."

My thoughts
Isn't the same true for all cycles. Each cycle has a sector or two which heats up. Good as well as trash Companies run up to crazy valuations(2/n)

KV Kamath at a conference organised by @ICICIPruMF

If in Formula 1 race if we can change tyres in 2 seconds, we can reset the country in a blink of an eye. The magic at blink of an eye which was done during the lockdown.. taking orders on Whatsapp, Google Sheets, settting up of websites, setting up adhoc counters to sell & deliver goods.
This was a mind reset to do work on the fly

For the precious metal lovers out there. For ages, #gold has been considered as safe haeven investment option. In times of uncertainty, where trust is lost in most of the asset classes, Gold is considered as the only trust worthy option. In itself, it has no value, but .. (1/n) Perceived value. You would have heard it - beauty lies in the eyes of the beholder. Same is with Gold. Banks, Govts, Hedge Funds and Investors all end up being in a gold buying frenzy when uncertain time comes in.. (2/n).

For those who think that they are able to value Reliance web of Companies, they must get a Nobel Prize award in Finance. As per their latest annual report, Reliance has 335 disclosed subsidiaries and over 150 JVs & Associate Companies. I wonder how many genius masterminds would be working to keep a tab of all of them. And I really have great respect for its auditors for the risk they take while signing their audit reports. Being a stat auditor once, it is difficult to scratch even the surface of a normal Co.

Very interesting insights shared by @NileshShah68 via the Monthly Update. Thank you so much. Sharing some nuggets out of the overall insights are in this thread.
Extreme polarisation visible in S&P500 where other than the FAANG stocks which are +35%, other 495 are -5% Same is in India. Top 15 stocks in NIFTY are at a level of NIFTY 14950 and rest are at the levels of ~8400 levels. Extreme polarision led by Reliance

Going through the Annual Report of ITC and several interesting facts coming out. This thread is going to focus all on that. Tagging the most tracked #ITC twitter handle @dmuthuk :)
1. First 20 pages talk about key brands and businesses. Doesn't even mention a word of Cigarettes. Is this a hint of ITC towards 'Sustainability' where ITC is moving away from the 'negative' brand image of Cigarettes ?
2. I wasn't aware that #ITC is into Techology via ITC Infotech
3. Launched over 60 new products in last year.
4. Produces a free cash flow of over 11500 cr p.a

Sector funds can be tricky. Within a sector theme, finding the right one can be even trickier. Right now the hot sector is Pharma after years of under performance. One of the better ones in this space is from @dspmf Healthcare fund - @AdityaKhemka5
Its holdings r on fire. Fund likes these which are relatively new, but haven't received a star rating yet, end up getting ignored. I hv always held a view that Star rating based investing is like driving while looking at the rear view mirrors.

A very interesting chart showing returns of different investment options (year on year) since 1980s. One's return depends truly in which asset category they invest and how long do they stay invested. Compounding happens every where, but the scale depends upon the underlying growth rate of the Investment. The higher the growth rate, higher is the risk (volatility).

Saw this article from @TheMFGuy1
themfguy.com/2020/05/19/som…

Truely an outstanding piece of journalism / blog. Thank you. My few bits.. There are few large fund houses named in it. While there is no shying away from the fact that in a few cases this may point towards Corporate Governance standards and not risk management standards who could have say 'NO' to these transactions