What are the fundamental principles of buying a bond? Here’s my take adapted from the intelligent investor. (A thread) @anand_srini @contrarianEPS @RichifyMeClub The first question taxable vs tax-exempt?
Well it depends, if you are in the highest income tax slab it might make sense to prefer tax exempt bonds but generally try to stick to the best yielding investment based on your current position. (Taxable bonds yield higher)

A thread on macroeconomics:
if the RBI doesn’t monetise government debt, yields on G-securities will rise. It leads to the crowding out effect where interest rates rise reducing private sector spending (reduced borrowing due to higher interest rates).@anand_srini @BalakrishnanR This has the unintended consequence of furthering the tax collection shortfalls and leading to an increased need to borrow to meet the gap. This further places stress on interest rates and capital allocation. As it perpetuates the loop of borrowing to meet shortfalls.

Finding value in an unforgiving environment (covid affected companies): my views are below @BalakrishnanR @anand_srini To find buys which are distorted due to unjustified pessimistic views requires courage. It also requires that you let go of immediacy. If you think a company hit by covid will recover and survive, consider buying it at depressed prices.

In the past two years the index has moved no where. The question to be asked is how people made money then? My take on it is below: @anand_srini @BalakrishnanR @RichifyMeClub #1 The major way in which people made money was to extensively buy at the March lows and avoid the January highs. This requires a high level of conviction and courage.

This is a thread on how much progress we have lost in the stock market in way of earnings per share. @BalakrishnanR @anand_srini Recently in newspapers there was news about how the market has receded by 6 years in way of earnings per share of the nifty 50. This was in nominal terms.

I wanted to talk about the quote “if I listened to economists I would have never made money.”This quote seems fair but here I present an argument on why economic concepts are an important aspect of investment analysis. @anand_srini
A thread on economic application in investing. I would like to highlight some instances where basic understanding of economics improves your analytical skills. In economics there’s a concept called elasticity. Price-demand elasticity refers to a change in quantity demanded of a good in relation to a change in price.

Should you invest in gold? Here’s a thread on what I think.
@anand_srini @BalakrishnanR @RichifyMeClub Why do investors buy gold in the first place?
This is a relatively simple question to answer. Gold has been treated for millennia as a universal currency. It is also believed that gold will always stay limited in supply due to finite resources and being impossible to manufacture.

A leading investor on twitter today posted his portfolio to the public. He is widely reknowned as a great investor on twitter. This is my analysis of his portfolio’s performance in this year. This is merely a performance analysis with no biases. @Vivek_Investor The first company on the list is HDFC life. This has been a company which has barely generated any returns. It has a poor dividend and yield and probably has negative real returns if subject to inflation. That said the company is fundamentally strong but highly overvalued.

A lot of the time small time investors do not have the time nor the tools to be able to research a lot and analyse risk of a company. This is where rating agencies step in. Rating agencies assess the risk of an asset based on financial stability and conventional market wisdom. The rationale for using rating agency information is that they have the tools and the means to be able to conduct research and run analytics much better than you or I can. Hence it seems to be common sense that the retail investor can trust them.

A lot of very smart, shrewd and hardworking people enter the stock market in haste in order to be able to apply those traits. The problem with the market is it’s unconventional. Being smart, shrewd and hardworking can be detrimental. The market is a mind game. (Thread) Being smart and hardworking might prove to be very useful in the market. These traits are what converts investors into traders. Not being able to sit tight and hold something. They feel the need to keep doing something. This doesn’t work in the market.

Should you invest in Nestle? My points are stated below:
(Thread) Background information:
Nestle is a large FMCG company which is market leader in multiple avenues.
Nestle has very little debt and it’s reserves as of 2018-2019 boasts over 1800 crores.
It’s PE is 81.89.
It’s dividend yield is 0.94%
It’s ROE and ROCE are high.

Should you invest in Tata motors? My points are as stated below:
(thread) Background information:
Tata motors is an automobile company which produces a range of vehicles from budget to luxury to industrial.
It has borrowings worth 99,678 crores.
It has posted a loss of over 7000 crores.
It owns Jaguar Land Rover.
It has more assets than liabilities.

Should you invest in Eicher motors? My points are as follows:
(Thread) Eicher motors is currently at a PE valuation of 31.
Eicher motors currently offers a dividend yield of 0.60%.
It has a good ROCE, ROIC, and ROE.
It has been able to show tremendous sales growth over the past decade.
It has a global brand operation.

Should you invest in Hindustan unilever ? These are some of the reasons to look at:
(Thread) The price to earnings ratio for HUL is at 74.
The dividend yield it offers is 1.11%.
It has been paying out a consistent dividend payout.
It has 0 debt.
It has a high ROE and ROCE.
It’s a manufacturer of inelastic goods which means the demand for its products isn’t volatile.

Some key points which we should keep in mind while investing our hard earned money.
1) most active mutual funds do not perform well.
2) one should constantly be reading the newspaper and books in order to invest.
3) Stay patient, investment insights can take years to materialize. 4) Investing requires a lot of time and care, do not get into it without the ability to dedicate time.
5) you don't need a high IQ to be a good investor.
6) No asset is an incredible purchase at any price.
7) short term movements are random but the cycle always prevails.

Mutual funds are doomed to earn sub - market returns in the long run. There are a plethora of reasons for this. The biggest reason is the sheer size of them which restricts their choices. Ex: A fund like UTI cannot hope to hold a large portion of its money in small cap companies. The second reason being they control so much of the market that they become the average. It becomes hard to beat the average when you are the average. This reflects in the stock portfolio as well because most Mutual funds mirror each other's portfolio.