YesUinvest

26/10/2022

Food and drink giants like Coca-Cola, Pepsi, Procter & Gamble and Nestlé all reported significant price increases in earnings reports this month, a sign that the cost of food — a major factor lifting overall inflation in recent months — is set to remain high. While some companies have warned that their profit margins are coming under pressure, they have mostly been able to pass on higher costs to consumers.

24/10/2022

These days pessimists sound smart as they are full of facts, trends, numbers, estimates, and projections. Optimists however make money as they are far more reliant on appealing to principles with faith in human endeavour, especially beyond the immediate future. Hence their investment focus will always be on well-run companies with competent management….such companies do find a way to deal with adverse situations to perform and sustain. If an investor is not an optimist at heart, then nothing else works.

22/10/2022

The global financial system continues to show intolerance to higher interest rates. In Europe ECB intervened to avert a sovereign debt crisis. Likewise Bank of England intervened to avert a meltdown in the bond market. Thereafter Bank of Japan intervened in the currency markets, defending the rapidly declining value of the yen after a 31% decline on the year relative to dollar. Watch out for more interventions in the emerging economies.

17/10/2022

Inflation eats into the buying power of your money-savings bit by bit, thus 'decompounding' it. To put it another way, inflation is effectively the reverse of compounding. In effect the purchasing power of money declines as inflation rises. As a result, bond-stock prices tend to fall when inflation is increasing. However on a longer term perspective stocks (shares) have held up well against inflation.

10/10/2022

The essence of risk management lies in maximizing the areas where we have some control over the outcome while minimizing the areas where we have absolutely no control over the outcome particularly when the linkage between effect and cause is hidden from us. What does that mean to you as an investor? It means, you should own those stocks/investments where your knowledge (in-depth research) and expertise make the environment less random. “All of life is a management of risk, not its elimination.”

09/10/2022

Historically debt has been considered a moral failing, one that destroys people and relationships. Be neither a lender or borrower is the age old advice given by a father to a son. This advice however is not brought upon those who destroy capital raised from shareholders. Any investor trying to evaluate a company, debt-related numbers in a company's financial statements are like a stethoscope in the hands of a doctor, maybe even an MRI scan. They tell you a lot that would otherwise be hidden.

05/10/2022

Very happy Vijayadasami-Dussehra! Ravana, an ardent follower of Shiva, is depicted as having ten heads, a great scholar, a capable ruler and a maestro of the veena, but someone who wished to overpower the devas. His ten heads represent his knowledge of the six shastras+four Vedas. A negative interpretation of Ravana’s ten heads are the ten emotions-senses in humans…Kama (Lust); Krodha (Anger); Moha (Delusion); Lobha (Greed); Mada (Pride); Matsar (Envy); Manas (Mind); Buddhi (Intellect); Chitta (Will), and Ahamkara (Ego). In investing, some of these emotions stand in between the investor and his long-term success.

04/10/2022

In a declining market don’t panic when your investment blows up while the media is spreading continually lot of negativity-fear. The bottom line: most investors aren’t leveraged and shouldn't be overly concerned with stock market declines, other than saying to themselves: “Do I have cash I can put to work at these cheaper prices? And, where should I put that cash to work?” So, for the average investor, dips are an opportunity to buy stocks at a discount.

03/10/2022

An Axis Mutual Fund study finds that investors earn lower returns than the funds they invest in…..the reason for this is in human behaviour. This behaviour can be summed up as 'buy on excitement, sell on panic'. In effect it amounts to 'buy high, sell low,' the exact opposite of what one should be doing. Instead of finding an optimal investing strategy, doing this brings investors to the reverse, a 'pessimal' investing strategy.

01/10/2022

The rupee is nearing the 82+ mark to the dollar. RBI seems to be under pressure to arrest the rupee’s slide. Already RBI has already drawn down its foreign exchange reserves by about $97 billion to $545 billion from a peak of $642 billion a year ago to defend the rupee against excessive volatility. Be wary that any pressure to arrest the slide in ₹ can further draw down forex reserves.

29/09/2022

https://www.instagram.com/reel/Ci0vpk2AN27/?igshid=NmNmNjAwNzg=

Warren Buffett Videos | CMQ shared a post on Instagram: "“Cash is always a bad investment…” -Warren Buffett". Follow their account to see 243 posts.

27/09/2022

Ordinary investors must stay away from conversations that revolves around esoteric economic factors. All this is almost completely useless for you and me as far as making actual investment decisions about what stocks to buy and what stocks to not buy. What really matters is your quest to generate wealth from your stock investments. It's the simplest and most straightforward idea in the world: find good companies and invest in their stocks.