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?
Quote ✍️
“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.
![[14-Jan] Newsletter: Investing in HoldCos, Market Overview & 5 Good reads](https://www.smallcase.com/wp-content/uploads/2023/02/n51Y5-34.jpg.webp)
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.
![[14-Jan] Newsletter: Investing in HoldCos, Market Overview & 5 Good reads](https://www.smallcase.com/wp-content/uploads/2023/02/8yye1-macro-markers-28.jpg.webp)
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.
![[14-Jan] Newsletter: Investing in HoldCos, Market Overview & 5 Good reads](https://www.smallcase.com/wp-content/uploads/2023/02/Wr9UQ-sensex-30-pe-ratio-21.jpg.webp)
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?
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