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🔆 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?

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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

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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.

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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.

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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

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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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Capitalmind