14-Jan: Investing in HoldCos, Market Overview & 5 Good reads
🔆 Saturday Coffee Newsletter
- Quote: Wisdom in a few words
- Market Overview: Top stocks & asset classes
- Of the Chart: Sensex 30 PE ratio
- Good Reads: 5 good reads from across the globe
- Capitalmind LIVE: Should you invest in holding companies?
“It’s not whether you’re right or wrong that’s important, but how much money you make when you’re right and how much you lose when you’re wrong”
— George Soros
What’s up with markets? 📉📈
This week, two tata companies top the list on either side of the line. Tata motors gained 7.7% while Titan plunged by 4.7%. Another Tata behemoth, TCS, gained 5.1% backed by strong earnings.
Crude was below $80 last week and it seems we got too happy, too soon. It gained back 7.9% this week and ended at $84.8 per barrel. Just where it was last year. Similarly, the Nifty 50 is where it was last year.
INR has depreciated by 10% over the last 1 year and thus also helped Gold gain in value which is now up by 17% this year.
Of the Chart 📊
The price-to-earnings (P/E) ratio is a measure of the price of a share relative to its earnings. This ratio can be calculated for the index as well. Here’s how the P/E ratio of Sensex stands now compared to its historical trend.
What we are reading? 📝
- It is madness for an investor to have anything else in mind other than the operating realities of the underlying business. Read – The Investor’s Investor
- The markets are in the midst of a sea change, similar to the sea change that occurred in the early 1980s when interest rates began their 40-year decline. Read – Interest rates for stock growth
- When some industries become more productive, other industries necessarily become more expensive. Read – It’s Time for a National Success Fund
- The more writing you publish on a topic, the more the hive brain conspires to route relevant information and connections your way. Read – Writing as Strategy
- We are drowning in information. Most of which is irrelevant. Can we sort what matters from what doesn’t? Read – Evaluating Information
Should you invest in Holding Companies? 🤝
In latest our weekly show, we discuss holding companies with Deepak Shenoy
- What are holding companies
- The peculiar thing
- Should you invest?