Tag: reading

Sunder’s List: No Such Thing As “Forever”

Roundup: S&P +0.47%, Dow +0.75%, Nasdaq +0.28%, Gold $1,210.30, London +0.23%, Germany +0.94%, France +0.07%. At pixel: Nikkei -0.64%, Hang Seng -0.09%

Thoughts for investors with the “buy and hold forever” affliction:

  1. Majority of large companies do not successfully maintain their current revenue streams, let alone grow them over time. The lifespan of companies in the S&P 500 index has been steadily shrinking for decades. In 1960, a typical S&P company had been around for 60+ years. By 2010, the typical S&P company was 16 or 17 years old. (HBR)
  2. Use Facebook as a case-study. “What we’ve learned from working with 16-18 year olds in the U.K. is that Facebook is not just on the slide, it is basically dead and buried. Mostly they feel embarrassed even to be associated with it.” Facebook has become the link with older family, or even older siblings who have gone to university. (TheConversation)

Robots and humans are inching toward integration. Robot-human teams would combine machines’ strength and employees’ ability to see, feel, touch and think — qualities impossible or too costly to replicate mechanically. It’s a new frontier in automation after mechanization helped boost U.S. factory output by 53% in the past two decades even as manufacturing employment tumbled 28%. (Bloomberg)

PE firms may have to pay a combined $1B for defrauding shareholders out of billions of dollars by colluding to keep prices artificially low when buying their companies. The firms agreed from 2004 through 2008 not to jump each other’s signed deals.(NYPost)

Turkish markets are in turmoil over a corruption investigation. Prosecutors, who unveiled a wide-ranging corruption investigation Dec. 17, have said they plan to charge at least 24 jailed suspects with bribery, money laundering and gold smuggling. (WSJ)

Good luck and have a nice weekend!

 

Sunder’s List: Boxing Day

Roundup: S&P +0.29%, Dow +0.39%, Nasdaq +0.16%, Gold $1204.00, London +0.23%, Germany +0.94%, France +0.07%. At pixel: Nikkei +0.91%, Hang Seng +1.13%

Titan Industries, which generates about 75% of its revenue from jewellery, may have to expose half its gold inventory to price fluctuations. Although the report singles out Titan, this is an industry-wide problem brought about by regulation. (ET) [stockquote]TITAN[/stockquote]

The real threat to gold’s price is deflation. SocGen has a 2016 gold price target of $1,050. (Barron’s, #gold) [stockquote]GOLDBEES[/stockquote]

Foreign investors have mostly steered clear of midcap companies and such, midcaps remain out of favor. But for how long? (WSJ)

Nobody knows if foreign brokerages are allowed to do proprietary trading in India. Morgan Stanley sought RBI’s approval to start proprietary trading. RBI sought the views of the Finance Ministry. The ministry on its part has asked Morgan Stanley to discuss the matter again with the RBI. Wonderful. (HBL, #regulation)

The McResource site, is advising its employees to eat Subway sandwiches instead of burgers and fries – because it is unhealthy. (RT)

Good luck and Happy Boxing Day!

Sunder’s List: The Cycle

Roundup: S&P +0.53%, Dow +0.45%, Nasdaq +1.08%, Gold $1,198.20, London +1.09%, Germany +0.94%, France +0.51%. At pixel: Nikkei +0.79%, Hang Seng +0.81%

The cycle of “siren stories” as played out by the BRICs: a kernel of truth is packaged as the next big thing. Fools rush in, insiders cash out and the last one in is left holding the bag. After Japan’s Daiwa and America’s Fidelity, its now the turn of Morgan Stanley to call it quits in the Indian mutual fund business. (Reuters) Goldman drives the last nail into the BRIC coffin: As the Tide Goes Out

Bill Gates once remarked: “Most people overestimate what they can do in one year and underestimate what they can do in ten years.” The same can be said about the solar industry. After hitting the skids on the back of cheap Chinese manufacturing capacity, solar energy is set to decimate the good old fashioned utilities (discoms) as more and more businesses and household opt out of the gird. The death-spiral thesis runs thusly. Subsidies and falling technology costs are making distributed solar power—panels on roofs, essentially—cost-competitive with retail electricity prices in places like the southwestern U.S. As more people switch to solar, utilities sell less electricity to those customers, especially as they often have the right to sell surplus power from their panels back to the utility. (WSJ)

What do gold and bitcoins have in common? Leave it to Krugman to take-down the idiocy surrounding the obsessions. (NYT) [stockquote]GOLDBEES[/stockquote]

What does the VIX say? Volatility is at it lowest:

India VIX

Good luck and Merry Christmas!

Sunder’s List: Monday Edition

Roundup: S&P +0.48%, Dow +0.26%, Nasdaq +1.15%, Gold $1,203.70, London +0.33%, Germany +0.69%, France +0.40%. At pixel: Nikkei +0.07%, Hang Seng +0.50%

Last week, the Karnataka high court ruled that Diageo’s acquisition of 101.4 million shares from United Breweries (Holdings) Ltd, representing a 7% stake, was void. If Diageo is serious about United Breweries, there may be another open offer down the road. [stockquote]MCDOWELL-N[/stockquote] [stockquote]UBHOLDINGS[/stockquote]

Indian steel companies are busy expanding auto-grade output. “Tata Steel sells around 1mt of flat products to the automotive industry and we expect it to double in next five years.”B hushan Steel sees its auto steel capacity rising to 4-4.5 mt in five-seven years from 2.2 mt now. (LiveMint, Metals)

India Post plans to launch 1,000 ATMs in next six months and bring all branches on single technology platform. They also plan to issue ATM cards to all savings deposit holders at India Post. (LiveMint)

Chinese internet giant Alibaba is now competing against bank savings accounts — and winning. In November, deposits in its investment platform, Yu E Bao, surpassed 100 billion yuan ($16.4 billion), with 30 million users—astonishing growth in just six months of operation. (QZ) I think its time for a VC funded online-only bank in India, they can piggyback on the post office’s ATMs…

This is how Warren Buffett interprets financial statements: Valuewalk

Good luck!

Sunder’s List: Chicken

Roundup: S&P -0.06%, Dow +0.07%, Nasdaq -0.29%, Gold $1192.20, London +1.43%, Germany +1.68%, France +1.64%. At pixel: Nikkei -0.45%, Hang Seng -1.10%

Quick, what is the minimum export price for chicken wings? Close to 50% of all the raw chicken breasts sampled by Consumer Reports in the U.S. tested positive for “superbug” bacteria. (Reuters)

But if you are more of a breast person, then maybe we can arrange a swap with McDonald’s? McDonald’s has 10M pounds of unsold chicken wings after misfiring on a promotion. (WSJ)

Government approves Rs6,600cr interest-free loan to sugar mills. Mills have to repay the loans in five years and can avail of a moratorium on repayment for the first two years. (FP)

India’s bad banker problem: all too often, loans go to borrowers not because they are creditworthy or because they have good projects but because they are connected or corrupt. Add sloppy bank practices into the mix and we have a disaster on our hands. For example, in Kingfisher Airlines’ case, foreign banks that had careful documentation were able to seize assets (including Kingfisher planes parked at London’s Heathrow airport). But some Indian banks were less careful and found themselves with little recourse. (FT) [stockquote]KFA[/stockquote]

There’s a strong case that the money which has flowed into developed markets this year will start to switch into emerging markets in the short-term. (AC)

Should investors avoid investing in commodities purely for the sake of diversification? No. Research suggests these justifications for long-term bets on commodities are illusory. (FT)

Good luck and have a nice weekend!