The Tortoise Speaks...

A blog which periodically revisits evergreen investment principles!

Category: Equity Page 1 of 2

Mistakes were made…

It’s always difficult to deal with mistakes even if they teach us the most about who we are & how we think. While running a diversified portfolio few one-off mistakes do get absorbed in the longer run but the mistakes still hurt.

from The New Yorker Magazine

Read More

Too Much Trust…

Risk aversion is what keeps the market honest & sane

– Howard Marks.

Is there something like ‘too much trust’? Can there be a situation where we so blindly accept our fate in the future that we forget that there ever was something like uncertainty?

Read More

Why Should Companies be Well Behaved? – Part 1

By Raunak Onkar |

Normally when we think of a word, our mind creates a mental image of it. We realise if we associate some strong meaning / feeling with that word. The word ‘corporate governance’ doesn’t invoke any of those things. It’s a bland, technical word which only seems like a good filler in an otherwise boring conversation about stocks.

If we wish to really create a mental picture for good corporate governance, first we need to create a good picture of the business world in general. Good governance, in simple terms, is being treated fairly when not in power by those who are in power. It applies as much to governments as to companies.

Read More

Why Nifty and Sensex may not be the right barometers to look at!

By Raj Mehta,

Last week, I met one of my friends who asked me an interesting question, “Why is it that Nifty and Sensex were up 25% in the year 2012 but I have lost money in my portfolio?”. Many times I hear people say Nifty is up 13% year to date or Sensex is up 12% but what does it mean to your portfolio?

CNX Nifty or Nifty 50 is an index of 50 stocks whereas S&P BSE Sensex is an index of only 30 stocks. The criteria for the constitution of this index is set in such a way that only companies with a large market capitalisation can enter these indices. Other factors which are more important like business sustainability, profitability, growth, management have not been considered. So this would include a possibility that “Hot sector companies” might find the place in the index whereas a well managed, dividend paying company might not be included. The criteria of selecting the index constituents shifts the bias towards large market capitalisation companies and the index is not well represented. For eg. ITC has a weightage of 10.68% in BSE Sensex currently but you might not have it in your portfolio considering the valuations that it is trading at. If today ITC moves up by 5%, then the index would move up just by its weightage in ITC but your portfolio return could actually be negative.

Read More

Can we really use FMCG techniques to market MF products?

Jayant Pai ,

Mutual FundAt a recent mutual fund seminar, there was the usual lament about how funds are failing to gain traction among ‘small investors’. While several causes were cited, they mostly boiled down to mutual funds failing to resonate or ‘connect’ with investors.

It was then posited that mutual funds should take a leaf out of FMCG product marketing strategies. The underlying belief behind this was that small investors are no different from small consumers. As long as you attractively package the idea to them and educate them about the utility of the product, they will bite.

Read More

Page 1 of 2

Powered by PPFAS Mutual Fund