1/ It's the weekend!

Grab a cup of coffee. In this thread, I will explain:

1. What is Behavioral Finance?
2. What are biases and how do they impact 99% of investors?
3. What are different types of biases and how to overcome them?

Let's dive right in. 2/ Behavioral finance is a field that studies how psychological, human biases and emotions influence financial and investment decision-making.

1/ It's the weekend!

Grab a cup of coffee. In this thread, I will explain:

1. What is cost of capital and WACC?
2. How does a company's capital structure impact its valuations?
3. How to code WACC as a field in screener?

Let's dive right in. 2/ Before we start to explore cost of capital, we first need to understand what is meant by capital structure of a company.

US Fed's new Emergency Stabilization Plan

1⃣ Provide loans to banks
2⃣ Value US Treasuries held by banks at par for collateral, even if they are currently not valued at par
3⃣ Inject USD 25B into banking system

They are calling it BTLP

Its essentially QE with a different label It took Fed ~2 years to sell $600B and only a few days to reverse 50% of that

Just last week alone Fed bought $300B worth of assets

Current size of Fed Balance Sheet ~8.5Trillion USD

Why you should not be wasting your time with microcaps (less than 500cr market cap)

A data driven analysis 🧵👇 As of last week, there are ~4250 listed companies in 🇮🇳 stock market representing about ~3.23T USD

Of these 4250, about ~49% (2069) are below 100cr market cap and further about ~21% (900) are between 100cr to 500cr market cap

Effectively ~70% of listed universe is below 500cr

#AartiPharmaLabs lists today, here are some slides from my presentation at @ias_summit to help you understand the business ⤵️

The current share price is expensive, I wouldn't be a buyer at this price 🛑

D: Not an investment recommendation @ias_summit At 315/share, the market is implying a market cap of ~2850.75cr to the company or a PE multiple of ~18x TTM earnings

All upgrades I have made to my investing process in 2022

1⃣ Automated macro/ global financial health monitoring
2⃣ Metric + Data driven monitoring of price + volume in Indian stocks
3⃣ Incorporated technicals & stages into buy/sell process
4⃣ Automated analysis of insider buying 5⃣ Proper Industry & Sub Industry Classification of all stocks > 100cr market cap
6⃣ Automated signal generation of bulk/block deals
7⃣ Create a bot to fetch, save and organize research reports into G Drive
8⃣ Better organization of notes & research material via Discord

Seems like a good day to post some stats 📊

Percentage above 40W EMA

Large Cap: 63% (was ~78% two weeks backs)
Mid Cap: 51%
Small Cap: 52%

Large caps were leading the market but the gap between large vs mid & small is now reducing Only ~28% of IT stocks and ~45% of Pharma stocks are above their 40W EMA

Banks, Metals and Capital Goods are ruling the market

Can be a better financial advisor than 90% of FinTwit

Go through the comments on this, some really great examples of where AI is headed

Imagine instead of web searching a specific query and going through several links you get detailed *great* answers right from the chat bot

The AI is able to render code as well (eg. in next tweet)

https://twitter.com/sama/status/1598038815599661056

https://twitter.com/macostaeth/status/1598099294728630272?s=20&t=pk794l9KLDl1fbWka7m5Uw

Lot of interest in US Listed stocks, so here is a thread on How to research them Independently 🧵👇 Before we get started, a friendly warning, US Stock Market is a true 'free market' and unlike the ones we are accustomed to in India.

DXY 109.05 👀

Why is it important?

1⃣ Indicates fight to safety (higher demand for dollar)
2⃣ EM currencies suffer (can INR reach 85?)
3⃣ Clears path to cross 110 (multi decade resistance)

Last time DXY was >109, it was Jan 2001 Monthly

It's the weekend!
Grab a cup of coffee, in this thread I will explain

1. What are ETFs?
2. How are they different from Mutual Funds?
3. What are factors to consider while investing in ETFs?

Lets dive right in. ETFs stand for Exchange Traded Funds

The easiest way to understand them is to think of them as Mutual Funds that are traded on the exchange just like stocks.

(technically, ETFs are nothing like Mutual Funds)

Dead Cat Bounce or The Bottom? 🐈 This one is bit curiouser

Average correction from top is around 25 to 35% range, N100 has already completed 30% draw down and broken imp lows last made in Dec'20 and Mar'21

If it has to reverse it should do it now, otherwise, correction can be as deep as 50%

Its the weekend!

Grab a cup of coffee, today I will tell you about all the tools and services I use in my investing journey

Some are free, some are paid but all of them are guaranteed to deliver value

Lets dive right in! Service # 1

Name: @Regulation30
Type: Paid

Regulation30 is my go to source to hunt for exchange filings that are worth studying further

This is also the source where I get lot of special situation ideas that aren't that widely known

It's the weekend!

Grab a cup of coffee, in this thread I will explain

1. What is a Yield Curve?
2. Why is it an important indicator of Recession?
3. Is an Economic Recession around the corner?

Lets dive right in! Before we understand a Yield Curve, lets get some of the basic terminology out of the way

Rakesh Jhunjhunwala, Akasa Air and Why Budget Airlines are so profitable? 💸🧵👇 Rakesh Jhunjhunwala's Akasa Air takes its first flight in June 2022

RJ has invested $50 Million as initial capital in the company and has hinted at Ryan Air, a low cost airline in Europe as one of his key inspirations behind the business model for Akasa

Amid the ongoing war, you would have heard Nickel rising by over 200%, Wheat by 80% and Oil by 50%

But did you know there is another asset class that rose by over 2000% since Dec

Todays thread is about Credit Default Swaps, an asset class only accessible to the ultra rich 🧵👇 This thread is divided into the following parts

1. Basics & History of Credit Default Swaps
2. How Russian CDS rose over 2000%?
3. Why these instruments are limited to the ultra wealthy?
4. Can you profit indirectly from CDS?

#BorosilRenewables Q3FY22 Earnings Review 🧵⬇️ Before we proceed, a disclaimer, that I am invested and biased

All information presented in this thread, should be consumed with a pinch of salt (maybe two)🧂

This is not a buy or sell recommendation

Please do your own due-diligence and you will live happily ever after!

Its the weekend!

Grab a cup of coffee ☕

In this thread we will talk about Portfolio Construction

1⃣ Factors that determine how a Portfolio should be constructed
2⃣ Different types of PF construction methodologies
3⃣ Why Portfolio Principles matter?

Lets dive right in. Before you start picking stocks and sectors to invest in, you should be asking yourself a few very important questions.

A week ago $NFLX was the worst company, today its $FB

$FB now trading for less than 20x its FCF Increased position in $FB from 7% of PF to 9% of PF

#LaurusLabs Q3FY22 Earnings Analysis

In depth attempt to understand beyond the numbers 🧵⤵️ Before we proceed, a disclaimer, that I am invested and biased.

All information presented in this thread, should be consumed with a pinch of salt (maybe two)🧂

This is not a buy or sell recommendation

Please do your own due-diligence and you will live happily ever after!