How Ketan Parekh scam almost ruined the reputation of Tata Group !!

Tata Group set up a NBFC - Tata Finance in 90s

- Catered to personal loans, vehicle & home financing, credit cards & Mutual Funds

- Would be as big as Bajaj Finance today

But failed because of a scam. Read on Tata Finance was established in 1984 (3 years before Bajaj Finance)

Focus was on providing financing for commercial vehicles, plant and machinery, equipments two wheelers and consumers durables.

Later added Mutual Funds and Housing Finance business as well.

What is Indexation Benefit in Debt funds ?

News doing rounds that Debt mutual funds held for over 3 years will

- Lose the indexation benefit and
- 20% tax rates

Indexation benefit is one of the key reasons for which people chose Debt Funds over FDs

Read on - Indexation benefit means that before taxing your gains, the concept of inflation would also be considered.

Wherein returns on FDs or mutual funds are directly taxed without considering inflation, debt funds have/had this benefit over them.

NSE stops 'Do Not Exercise' facility for stock option traders.

Here is what it means and how dangerous can it be for traders !!

Read On: Lets take an example of selling stock options first.

Assume, Adani Enterprises is trading at 1800 Rs on 1st April, 2023.

And its 1700 PE is trading at 100 Rs at the start of the month

You decide to sell the 1700 PE with a view that it would not expire below 1700

In God we trust, everyone else must bring data !!

Hindenburg has been blamed in past 2 days to be anti Indian fake firm with vested interest

So, I decided to dig in their past performance and its much much better than the analysts on business news channels

A thread

1/ Hindenburg is a niche firm focused only on finding overvalued or shady stocks and shorting it. They have released reports for around 46 stocks on their website

This includes US, Chinese and Canadian firms with Adani being the latest addition

I checked the performance of 56 trades given by a famous analyst on Zee Business during the month of September 2022

73% of the trades (41 of 56) lost money

What is found is that you can make a hell lot of money by just doing opposite of what they tell you on TV

A thread 🧵 The reason I am sharing it is that ppl start understanding that they should not take advise from TV

TV channels should also take some responsibility of what's being said

And finally SEBI should come out of its sleep 👍

Compilation of some good trading strategies from Youtube

If leveraged properly, one wouldn't need to attend paid courses Option selling - Weekly Iron condor in Nifty by Yogesh Nanda

When price moves out of Bollinger Bands, big moves are likely to happen. Why?

It's Math. Read on Bollinger Band comprises of 20 period moving average of the price in the middle

And an upper and a lower line which form the band

The upper and lower lines are +2 and - 2 standard deviations from the average price

3 things to do to avoid losing money in option buying:

- Never buy an option trading below VWAP
- Never buy an option till its RSI < 60
- Never buy till high volumes candles show up

All these to be checked on 5 mins options charts Options by design are losing instruments. Most of them are bound to go to zero or lose value over time (as seen below). 70-80% their prices will drift lower. Hence, most of the times, conditions for option sellers and not buyers.

Here is how to wipe out your trading capital using Futures and options

A thread on making -100% and even more returns in trading 😄

1/ This is especially for option seller and futures trader who carry positions overnight

Let's look at 3 strategies used by traders

- Strangle
- Iron Condor
& Futures

And the risks associated with them

Here is how to decide whether to invest in an IPO in 2 mins

*Strictly for ppl looking for listing gains
*Not for Value investors & Hodlers

1/ Don't apply on the first day. Wait and watch till 2nd day end

Applying first won't improve ur allotment chances

2/

In 1982, A Velumani was asked in an interview at Bhabha Atomic Research Center (BARC) : "Where is Thyroid in the body" ? He couldn't answer.

But 20 years down the line, he was running world's largest Thyroid testing company.

A thread on the inspiring story of Thyrocare

1/ 1959 - A Velumani was born in a very poor family in a small village in Tamil Nadu. The family barely managed to earn 50 Rs per week

Thanks to the mid day meal introduced by the TN govt around 60s that Velumani was allowed to attend the govt school

2/

Compiling all my threads on Indian brands together. Check below 👍 Rooh Afza

https://twitter.com/zhr_jafri/status/1287087120046202882?s=19

Sandeep Engineer built Astral Pipes, a 5 Bn $ company from scratch.

But he faced a string of setbacks during the journey

- With first few businesses failed
- Close encounter with bankruptcy thanks to Ketan Parekh
- No demand for products

Thread on Astral - the Dabang Pipes

1/ 1981- Sandeep Engineer joined Cadila Pharma as a project engineer. His salary was around 850 Rs/month.

After 2.5 years in the job, he resigned to start his own entrepreneurial venture

2/

A 21 year old with a debt of 3 crores and a startup which was about to die didn't give up

And managed to create a 6000 crores Market cap company in 20 years

A thread on Nazara Technologies

1/ 1999 - Nitish, a fresh commerce graduate started Nazara Technologies. Nazara started developing online games like Housie

But just a year later when the Dot com bubble burst, Nazara was close to being shut down. There was no new business for an year old tech firm

2/

Jamie Vardy went from

- Getting dropped from a club's youth academy to be one of the best strikers in English football

- Earning 30 £ a week to making 100K £ a week

- Working in a carbon fiber factory to winning the English Premier League

🧵

1/ Born in Sheffield UK in a working class family in 1987

Vardy always wanted to be a premier league footballer

He got enrolled in the youth academy of the local club : Sheffield Wednesday

2/

Two B-School friends to start a company around tea breaks and cups which

- Changed the way brands advertise
- Got 150 clients in 5 years
- Scaled to 10 crore annual revenues

A thread on CupShup

1/ 2014 - Sanil Jain and Siddharth Singh from NMIMS, Mumbai had an idea to use paper cups for advertising

Their hypothesis was that people spend anywhere between 5 to 20 mins while having tea and conversations multiple times in a day

2/

From doing odd jobs in a theatre canteen to creating the most popular Indian wafer brand, Chandubhai Virani's grit is so inspirational

- A brand with turnover of 2500 crores INR

- Market leader in western India ahead of Lays & other major players

A thread on Balaji Wafers
1/ 1972 - Ramjibhai Virani, a farmer in Gujarat was facing a tough time making ends meet through farming

He sold his land for a sum of 20,000 Rs which he gave to his three sons to start a small business

2/

You can imitate the portfolio of big investors

But you cannot imitate their patience, position sizing, risk appetite, stoplosses and hedging

So just don't buy a stock because XYZ investor bought it

1/ Patience - Big investors buy stocks for a long time frame (a view of years to decades). And they are willing for the stock to move

You would get bored when it doesn't move for 4-5 days and sell it

2/

During the 2008 financial crisis, S&P 500 lost over 38%. But a US hedge fund managing billions generated returns of 98.2% 

The man behind it was a Maths Professor who gave up his job at the age of 40 to start a hedge fund

Story of Jim Simmons & Medallion fund.

1/ Jim Simmons was born in Massachusetts in 1938. With a strong interest in Maths, Simmons went to MIT for his bachelors and completed his PhD from UC Berkeley in 1961.

After that he started working as a code breaker for National Security Agency in 1964  

2/

The professor who made over 500 crores from stock markets while teaching at a B-School

Professor Shivanand Mankekar has been teaching finance in JBIMS, Mumbai from over 30 years

And by picking up a concentrated portfolio of stocks, he amassed a fortune

1/ He had been investing in markets from late80s when he started buying shares of L&T, Castrol, Sesa Goa, Wipro, Infosys

Some of his early bets gave handsome returns. He also called out the IT bubble in 2000 and sold Infy/Wipro before the meltdown

2/

A car with a 12 month waiting period in the 80s ruled the Indian roads for over 3 decades

A thread on Ambassador cars 🧵

1/ 1956, UK - Morris Motors manufactured and sold 3 variants of Morris Oxford car

It sold the rights and tooling for these cars to Hindustan Motors, a subsidiary of CK Birla group to manufacture and sell these cars in India

2/