Investment Perspectives: Define your Guiding Principles
A prominent research house gave a bearish call on the market at the end of February. Despite the Index climbing over 16% in the past 2 months, the firm stuck to its guns.
Read MoreBeware the enemy within
We have found the enemy and he is us
The chart below shows the time the NIFTY has spent in its historical trading bands of between 10-29 trailing earnings.
Read MoreCaveat Emptor
Complex products earn higher upfront commissions for Wealth Managers. Hence, there is frequent mis-selling of such complex financial products to investors.
Read MoreThe strategic importance of holding cash and equivalents
Solidarity is a multi-family investment office. We are often asked (by clients with high ability and willingness to take risk) why we recommend they should hold at least 10 -15% of their Investible Assets in Bonds/Liquid funds and not be fully invested in Equities; especially if clients don’t need the capital for at least 3 years.
Read MoreIs This 2008 Once Again?
Global markets have started the year with perhaps the worst performance in over two decades. The sell-off has prompted commentary in the media “hinting of parallels with the 2008 like crisis”
Read MoreMeasuring fund manager performance
Different managers follow different styles and approaches. By implication, their portfolios carry different levels of risk. The common wisdom at present is to compare manager performance using the “Sharpe Ratio” which compares the return generated per unit of risk taken.
Read MoreThe fallacy of “Growth now, Profits later” approach to building a business
Many venture founders are taking the “growth now and profits later” approach to building their business. I believe many of such ventures will fail as at some point the cash required from investors to fund such growth will not be available.
Read More5 reasons your venture has not got funding
As the Chief Investment Officer of a Family Investment Office, I get the privilege to interact with many entrepreneurs seeking funding from our clients
I have met at least 40 teams over the last one year and our clients are lead investors in 5 very exciting companies.
Read MoreThe danger of 1 Year Forward Multiples
A common tendency while gauging valuation of companies is to estimate the one year forward multiple at which they trade. Our core investment approach is to “Buy Quality Companies at Fair Valuations”.
Read MoreInvestment strategy at the current juncture
A simplistic view taken by many analysts at present is that the Nifty is trading near its 10-year average valuation (see chart below) and hence, one should still be fully invested.
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