Invest Without Emotions
We had written about Apollo Tyre’s acquisition of US based Cooper Tyre & Rubber here. It looks like the delay is causing Cooper to shit the bed…
Cooper Tire says in a new court filing that Apollo Tyres still doesn’t have an agreement in place with the United Steel Workers. The company also says it doesn’t know for sure when its Q3 financials will be finished due to issues it can’t control. (SA)
While the market seem to like Apollo Tyer’s trying to back out of the deal…
Stay tuned!
Morgan Stanley has created two sets of investment portfolios to “play” the poll results (MoneyControl)
The first is if there is a strong election result. Is basically a basket of high-beta, high-leverage, cyclical, strong short momentum stocks likely to outperform as the market gains conviction in a strong poll result.
Theme: Morgan Stanley’s Strong Election Picks Dec-2013
This portfolio’s beta is around 1.14. But if you are going to be bullish, why hold yourself back? The Market Fliers Theme does a better job of pushing the pedal to the metal, so to speak, with a beta of 1.84. High beta has been flying lately, the theme is +14.89% since inception, vs. the Nifty’s +4.31%
And the second is if there is a fragmented election result. Basically a good quality GARP basket, low PEG, high ROE, low beta and strong long-term momentum.
Theme: Morgan Stanley’s Fragmented Election Picks Dec-2013
This portfolio’s beta is around 0.54. But if you are going to play defense, commit! The Market Elephants Theme, with a beta of 0.27, barely has a pulse but beats the Morgan Stanley portfolio on both Sharpe and Information Ratio.
So, dood ka dood, paani ka paani!
The efficient-markets debate is really a competition between two theories. The efficient marketeers, led by Eugene Fama and Kenneth French, see the market as rational and calculating. Value investors, exemplified by Benjamin Graham and Warren Buffett, see it as a bipolar creature, either ecstatic or depressed.
Losing My Religion: How I Unlearned Efficient Markets Folly
Based on a sample of 13 countries observed over the period 1980-2005, financial liberalization is associated with skill-upgrading in the financial sector. Also, financial liberalization decreases labour productivity, total factor productivity and value added growth disproportionally in industries which rely strongly on skilled labour. This is consistent with the idea that financial liberalization hurts non-financial sectors via a brain-drain effect.
Finance as a Magnet for the Best and Brightest: Implications for the Real Economy
The marginal cost of a good is the cost of producing one more of the good in question. Thus, in the case of the iPhone, for example, the marginal cost is how much it costs to produce one more iPhone, which, according to iSuppli, is $199 for the iPhone 5S. The floor for price cutting is called the “natural price,” and is equal to the marginal cost of the good.
What makes the software market so fascinating from an economic perspective is that the marginal cost of software is $0.
Creativity and mental illness share a process called “cognitive disinhibition.” Essentially cognitive disinhibition describes a failure to keep useless data, images, or ideas out of conscious awareness. This failure may make schizotypal personalities more prone to delusional thoughts or mental confusion; on the flipside, it could make creative minds more fertile.
What Neuroscience Says About The Link Between Creativity And Madness
All companies that grow really big do so in only one way: people recommend the product or service to other people. The only way to generate sustained exponential growth is to make whatever you’re making sufficiently good.
When you are on your deathbed, what others think of you is a long way from your mind. Life is a choice. It is YOUR life. Choose consciously, choose wisely, choose honestly. Choose happiness.
We introduced a couple of 3rd party themes last month, Velocity and Long Term Equity. Today, we are proud to introduce the latest theme created by our newest contributor.
The Consistent 10 is a portfolio of stocks that have provided consistent returns in the past five years and are reasonably valued now.
You can follow each of themes by clicking on the “Follow” button under each of these themes.
The Nifty shot up +1.36% (+2.55% in USD terms)
Cyclical and Bank stocks drove the rally…
| JINDALSTEL | +9.82% |
| AXISBANK | +10.71% |
| TATAPOWER | +11.19% |
| GODREJCP | -6.56% |
| HINDUNILVR | -5.90% |
| ASHOKLEY | -3.27% |
| PSUBNKBEES | +5.75% |
| BANKBEES | +5.35% |
| INFRABEES | +3.88% |
| NIFTYBEES | +1.80% |
| JUNIORBEES | +1.77% |
| GOLDBEES | -1.04% |
Green/brown shoots for market depth?
Yields actually went up last week. The fixed-income market doesn’t seem to be sharing the stock-market’s enthusiasm…
| Quality to Price | +4.52% |
| Market Fliers | +3.20% |
| ADAG Mania | +2.51% |
| Growth with Moat | +1.67% |
| Long Term Equity | +1.43% |
| Balance-sheet Strength | +1.28% |
| Enterprise Yield | +1.10% |
| Market Elephants | +0.92% |
| Magic Formula Investing | +0.78% |
| Efficient Growth | +0.11% |
| Momentum 200 | -0.21% |
| Velocity | -0.21% |
| Financial Strength Value | -0.97% |
If you want your brain to unconsciously process a math problem, it would be better to have the distractor be something totally different, like playing tennis, rather than something similar, like a spatial puzzle.
People who engage in “workplace Internet leisure browsing” are about 9% more productive than those who don’t.
Finally, break time — the last unmanaged part of the workday — will no longer be a waste of time.
Source: How To Waste Time Properly