A question that remained unaddressed in the last Q letter to Partners was “Why do we not own any Mid-sized Banks?”
Banks can be attractive businesses to own as they enjoy natural growth tail winds of growth while delivering 15-18% ROE. However, over the last decade, only 3 Banks (representing < 15% of Industry Assets) have delivered over 15% PAT growth or above 15% ROE consistently.
Read MoreThe starting point for Investors must always be Asset Allocation. In some earlier letters, we have written to you recommending you should hold some Gold/Gold Equivalents in one’s portfolio – as Insurance to guard against the “unknown unknowns” of excessive money printing and even as diversification into another Asset Class that is not correlated with Equities.
Read MoreOver the past few week, we have been asked by many partners whether “It is a good time give you more money?”
Read MoreIndia has implemented two significant regulations in the recent past. GST and the Bankruptcy Code. We argue that a third one is on the way which will lead to Re-pricing of Credit risk
Read MoreThe best businesses are those that can grow predictably while generating cash and can grow without any or very little reinvestment of this cash.
Read MoreIn our Q2FY18 letter dated 4 July 2017, we had made the following observations
Read MoreMarkets have done well over the last 12 months with the NIFTY up ~ 25%. A common question we encounter at present is whether one should add to their Equity exposure at present.
Read MoreThe money one does not want to risk Capital loss on is typically invested in Debt instruments. However, Debt Mutual funds have schemes that invest across varied risk spectrums.
Read MoreThe most common question Investment Managers get are “Is this a good time to enter equity markets?” and “where do you see the markets headed from here?”
Read MoreRead More“I can think. I can wait. I can fast”
Siddhartha, Herman Hesse