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Investment Communique

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When the booze is overflowing non-stop in a party riding on high octane, very few drinkers really think about the consequent hangover when the party stops. In such a high adrenaline atmosphere, many grossly overestimate their capacity to drink, encouraged by behaviour of their friends & crowd around them. The world markets are going through a similar party. The booze (easy money) is supplied by central bankers all over the world in high quantity and…

“There are decades where nothing happens; and there are weeks where decades happen” – Vladimir Ilyich Lenin. The first Roman empire rule began in 27 BC and helmed by the emperor Caesar Augustus. Roman Empire at its peak conquered a huge part of Europe and significant part of the African continent. The empire built 50,000 miles of roads, amphitheaters, bridges and infrastructures that are still in use today. Even today many of western countries’ alphabet, calendar, languages, literature, and architecture is…

In my multiple conversations with investors during the bull-run since 2014, there was no one who said that I will not take advantage of investing in equity when the market will crash. In good times i.e. when the market valuations are usually very high, everyone agrees to the logic of buying low and selling high. But interestingly, very few implement this strategy. Instead, the majority tend to invest when markets are going higher and higher,…

As I am writing this piece, I am sure many are already aware of the issues impacting the global economy – a global slowdown, trade wars, and burgeoning debt; and issues affecting the domestic economy – falling consumption, NBFC led confidence/liquidity crisis and constrained fiscal space. Many, however, are unable to understand if these issues are short term in nature or the long term. In other words, whether it is just a short cyclical correction…

Be greedy when others are fearful and be fearful when others are greedy. – Warren Buffet Indian stock markets have taken a good leap forward after the exit polls declared the return of NaMo led NDA with a stronger mandate. This has bolstered the confidence of bulls on the back of expected continuity of reforms push. Although a stronger mandate ensures that there would be lesser obstacles in bringing and implementing reforms, any tangible gains…

Sensex has declined by 12% from its all-time high of 38,989. BSE Mid Cap Index and BSE Small Cap Index are down by 24% & 31% respectively from its peak level. Many people who get carried away in the bullish market sentiments turned speculators and are now feeling the pain. In this communiqué, we are going to discuss the reasons for the market fall and investment strategy to deal with the current situation. Following are the…

Liquidity is a powerful force that drives stock markets higher but doesn’t guarantee the upward trend over the long term. It is very difficult to even predict the timing of the reversal of liquidity. Should an investor thus take liquidity for granted knowing very well that the reversal of the trend is very difficult to predict? The abundant liquidity channelized by QE (quantitative easing) by major central banks around the world since 2008 crisis has…

We came across an excellent piece regarding lessons that make you a smart investor based on investment style of Howard Mark- one of the most respected investment managers globally having a long proven track record. His firm manages around USD 99 billion in assets. His investment philosophy corroborates with our investment philosophy at Truemind Capital and thus we thought of sharing his words of wisdom with you. Key principles of his investment philosophy are: Margin…