A blog which periodically revisits evergreen investment principles!

Category: Uncategorized

Investing with Conviction @ FLAME University

I got another chance to present on a very abstract topic which I have personally found very hard to articulate. It was thanks to (@NeerajMarathe) Neeraj Marathe’s four day course at FLAME University. FLAME Investment Lab provides a very unique learning platform for professionals.

What Silicon Valley can teach us…

What has insensitive & politically incorrect humour, amazing satire about the tech world & lessons for investors in the tech space? “Silicon Valley” an HBO TV series created by the legendary writer / director Mike Judge. Mike Judge acquired a cult following for Beavis and Butt-head, an animated series and the 1999 film Office Space which was like Dilbert in a film form. Judge has amazing ability to combine relevant ideas & repackage them with humour.

How permanent are the “temporary” measures?

By Raj Mehta, [email protected]

In the past 2 months, RBI has tried to take many steps to stem the flow in the fall of rupee against the dollar. If you have a glance at the exchange rate history over the past month,it doesn’t seem as if those measures have had any effect on the rupee. But if you think the other way round, if RBI had not taken those steps then the rupee could have depreciated even further. The RBI has taken steps towards tightening the liquidity in the system while the government has tried everything to curb the gold imports from increasing the import duty on gold to limitation on borrowing against gold. The measures include RBI cutting the amount of funds it lends to individual banks under the liquidity adjustment facility (LAF) to 0.5% of the deposits of a bank. This compares with 1%, or Rs 75,000 crore, available for the entire financial system.RBI raised lending rates to commercial banks 2 per cent to 10.25 per cent making the loans costlier.The other measure was to suck out liquidity from the system. The RBI asked banks to maintain a higher average CRR (cash reserve ratio) of 99 per cent of the requirement on a daily basis as against the 70 per cent required earlier. Also, the RBI made it mandatory for the FIIs to obtain the consent of holders of participatory notes and derivative instruments. While announcing these measures, RBI has always said in their statement that these measures are “temporary” and they will be rolled back as soon as the currency settles a bit and the economy improves. How long will the “temporary” measures last is the question stock market is asking.

Powered by WordPress & Theme by Anders Norén