Author: Kshitiz Jain

CAGR Insights is a weekly newsletter full of insights from around the world of web.

Index	17-May-24	10-May-24	Change
Nifty 50	22,465	22,055	1.86%
Nifty 500	21,061	20,475	2.86%
Nifty Midcap 50	14,510	13,919	4.25%
Nifty Smallcap 100	16,859	16,111	4.65%

Source – : RVM,MSCI, Returns 2.0

Here’s the list of curated readings for you this week:

Personal Finance

• Jim Simons, Pioneering Quant Trader and Philanthropist, Passes Away: Jim Simons, a pioneering mathematician, and founder of the successful quantitative hedge fund Renaissance Technologies was renowned for his Medallion Fund’s exceptional annual returns and his groundbreaking use of mathematical models in trading, Simons also made significant contributions to math and science through his foundation. Read here

• The Power of Small Details: Transformative leaders in low-margin industries excel by focusing on small details. Led by John Swallow, Idaho Strategic Resources thrives by combining gold and rare earth element production, strategic asset acquisition, and mining-friendly locations, like Costco’s operational excellence. This approach results in long-term success and premium valuations. Read here

• Teaching Life’s Rules through Field Day: Lessons in Winning and Losing: Field Day at school offers more than just games; it’s a lesson in life. As a parent, the focus is on teaching children the Rules of the Game: the pursuit matters more than the outcome, losing doesn’t define them, celebrating others’ wins is important, and surrounding themselves with supportive friends fosters growth and success. Read here

• Managing Expectations: The Pitfalls of Short-Term Guidance: Investors often overlook the potential for businesses to face unforeseen challenges, leading to disappointment when expectations aren’t met. Small businesses, especially, face numerous hurdles that shareholders rarely see. Providing short-term guidance can be counterproductive, often leading to unnecessary pressure on management and disappointment for investors. Read here

Investing

• Embracing Fintech Integration: The Rise of One-Stop Financial Solutions: The financial services industry is experiencing a shift towards fintech startups, which are attempting to bundle various activities into one. This approach is gaining popularity as customers increasingly seek convenience and trust in banks. However, the existing financial services industry is not conducive to fintech players offering a one-stop-shop solution. Watch

• Navigating Starbucks’ Digital Dilemma: Starbucks faces a dilemma between efficiency and maintaining its brand value. Future strategies may involve enhancing the in-store experience, improving the mobile ordering process, or fully embracing a transactional model, but the path forward remains uncertain. Read here

• Insights from Berkshire Hathaway’s Annual Meeting: Warren Buffett, alongside Greg Abel and Ajit Jain, emphasized the simplicity of investing, viewing stocks as businesses, and focusing on long-term performance. Buffett stressed the importance of understanding the businesses behind stocks, managing risk, and avoiding common investing mistakes. Read here

• SEBI Removes PAN-Aadhaar Link Requirement for Mutual Fund KYC: SEBI has removed the requirement of linking PAN with Aadhaar for mutual fund investors to obtain “KYC-registered” status. Under the revised rules, investors can now complete KYC using Aadhaar alone, without requiring the PAN-Aadhaar link. However, for “KYC-Validated” status, linking PAN and Aadhaar is still necessary. Read here

Economy

• India Upgraded to ‘Overweight’ by Citigroup, China Downgraded: Citigroup upgraded India to “overweight” from “neutral” in their emerging markets allocation, expecting the NSE Nifty 50 index to rise 7% by March 2025. The upgrade is based on India’s strong earnings and economic growth momentum, while Citi downgraded China to “neutral” due to weakening fundamentals despite recent market rallies. Read here

• Importance of International Diversification in a Dominant U.S. Market: Despite the U.S. stock market’s recent dominance, historical trends suggest that international diversification remains a crucial strategy. While the U.S. has outperformed in the past decade, there’s no guarantee it will continue to do so. Diversification helps manage risk by avoiding extreme outcomes, and considering the unpredictable nature of markets, it’s wise to spread investments across different regions. Read here
  
  
• India’s SEBI Proposes Multi-Regulator Approach to Cryptocurrency Oversight: India’s market watchdog, SEBI, suggests multiple regulators oversee cryptocurrency activities, contrasting with the RBI’s preference for a ban on stablecoins due to macroeconomic risks. SEBI recommends regulating crypto securities and ICOs, while RBI could oversee fiat-backed crypto assets. Read here

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Check out CAGRwealth smallcase portfolios

Both our smallcase portfolios are ranking well in the smallcase universe in terms of 1 year returns.

• CFF (launched in June 2022) – Ranked among Top 20 smallcase with medium volatility.

• CVM (launched in May 2022) – Ranked among Top 40 across the smallcase universe.

Do check it out here

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That’s it from our side. Have a great weekend ahead!

If you have any feedback that you would like to share, simply reply to this email.

The content of this newsletter is not an offer to sell or the solicitation of an offer to buy any security in any jurisdiction. The content is distributed for informational purposes only and should not be construed as investment advice or a recommendation to sell or buy any security or other investment or undertake any investment strategy. There are no warranties, expressed or implied, as to the accuracy, completeness, or results obtained from any information outlined in this newsletter unless mentioned explicitly. The writer may have positions in and may, from time to time, make purchases or sales of the securities or other investments discussed or evaluated in this newsletter.     Open the newsletter in the browser here

CAGR Insights is a weekly newsletter full of insights from around the world of web.

Index	10-May-24	03-May-24	Change
Nifty 50	22,055	22,457	-1.79%
Nifty 500	20,475	20,948	-2.26%
Nifty Midcap 50	13,919	14,190	-1.91%
Nifty Smallcap 100	16,111	16,934	-4.86%

Chart Ki Baat

Source: United Nation

Here’s the list of curated readings for you this week:

Personal Finance

• Creating Luck: Beyond Binary Views and Towards Active Habits and Strategy – The author discusses different models of luck, moving beyond the binary view to introduce the concepts of “Luck Surface Area” and the “Four Kinds of Luck,” ultimately proposing their own model focusing on active habits and good strategy to actively create luck. Read here
  
  
• The Importance of Inaction in Investing: Overcoming Natural Biases for Long-Term Success – Investing success often lies in what we don’t do rather than what we do. Despite our natural inclinations to react to market movements and headlines, long-term patience and inaction are crucial for success. Read here
  
  
• Charlie Munger: A Century of Wisdom and Partnership – Charlie Munger, born in 1924, has witnessed and been a part of a century of history. He and Warren Buffett built Berkshire Hathaway into the successful conglomerate it is today. Munger’s wisdom, irreverence, and partnership with Buffett have been instrumental in Berkshire’s success. Watch

Investing

• The Reality of Stock Holding: Understanding Shelf Life in Investing – The idea of holding stocks forever, as Warren Buffett once suggested, is often misinterpreted. While some stocks may indeed be held for the long term, the reality is that every stock has a different shelf life. Read here
  
  
• IAIP Session: Unveiling Quantitative Investment Strategies in India – The IAIP, recently explored various quantitative investment strategies such as Equity Long-Short, Managed Futures, Statistical Arbitrage, and Option Strategies. The session covered case studies, challenges faced by investors, and emphasized the roles, skills, and timing relevance in the market, including managed futures returns in India. Watch
  
  
• India’s Fixed Capital Formation: A Government-Driven Revival Amidst Declining Private Investment – India’s gross fixed capital formation has increased to 32.4% of GDP, the highest level since 2009, driven largely by government expenditure. However, private investment, crucial for sustained growth, has been declining since 2007-08, dropping to 19.6% of GDP in FY21. Read here

Economy

• Global Energy Transition: Opportunities and Investments – The energy transition offers significant opportunities for developers and equipment manufacturers globally. India, the US, and the EU are all experiencing surges in power demand, driven by factors such as data centre and AI growth, with the EU expected to invest nearly. Read here
  
  
• RBI Announces INR 40,000 Crore Bond Buyback to Ease Liquidity – The RBI announced a buyback of INR 40,000 crore worth of government bonds, focusing on short-duration papers to alleviate tight liquidity conditions. This move aims to ease short-term liquidity pressures while not affecting gross or net government borrowings, leading to a positive reaction in the bond market with lower yields and benefiting short-duration mutual funds. Read here
  
  
• Massive Online Scam: 800,000 Victims via 76,000 Fake Websites – A network of 76,000 fake websites originating from China has scammed over 800,000 people globally, primarily in the US and Europe, by luring them with discounted luxury goods and extracting sensitive personal and financial information. Read here

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Check out CAGRwealth smallcase portfolios

Both our smallcase portfolios are ranking well in the smallcase universe in terms of 1 year returns.

• CFF (launched in June 2022) – Ranked among Top 20 smallcase with medium volatility.

• CVM (launched in May 2022) – Ranked among Top 40 across the smallcase universe.

Do check it out here

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That’s it from our side. Have a great weekend ahead!

If you have any feedback that you would like to share, simply reply to this email.The content of this newsletter is not an offer to sell or the solicitation of an offer to buy any security in any jurisdiction. The content is distributed for informational purposes only and should not be construed as investment advice or a recommendation to sell or buy any security or other investment or undertake any investment strategy. There are no warranties, expressed or implied, as to the accuracy, completeness, or results obtained from any information outlined in this newsletter unless mentioned explicitly. The writer may have positions in and may, from time to time, make purchases or sales of the securities or other investments discussed or evaluated in this newsletter.

CAGR Insights is a weekly newsletter full of insights from around the world of web.

Index	03-May-24	26-Apr-24	Change
Nifty 50	22,457	22,453	0.02%
Nifty 500	20,948	20,859	0.43%
Nifty Midcap 50	14,190	14,083	0.76%
Nifty Smallcap 100	16,934	16,979	-0.26%

Chart Ki Baat

Source: Lafond and IRENA Database.

Here’s the list of curated readings for you this week:

Personal Finance

• Understanding the Psychology of “Bad” Financial Decisions: Insights from American Lotteries and Economic Realities – Delves into the psychology behind “bad” financial decisions, highlighting the complex motivations and circumstances that drive individuals, especially those in lower-income brackets, to engage in seemingly irrational behaviors like playing the lottery or investing in high-risk ventures. Read here
  
  
• Navigating Risk: Lessons from Golf and Investing – Contrasts the success of golfers Rahm and Scheffler, highlighting their different risk-taking approaches, and draws parallels to investor behavior, advocating for disciplined adherence to investment strategies amidst market volatility. Read here
  
  
• Shruti Agrawal’s journey as a CFA Charter Holder – Check out this video by CFA Institute: The Journey of Women in Finance featuring Shruti Agrawal, sharing her insights on a successful career in finance. Read here
  
  
• The High Cost of Tax Avoidance: A Billionaire’s Tax Dilemma – how ultra-rich individuals meticulously strategize to minimize taxes, highlighting the lengths they go to in avoiding NYC’s tax status threshold, questioning whether such actions truly reflect wealth or rather signify being controlled by money. Read here

Investing

• The Rise of Crypto Zombies: Billion-Dollar Blockchains with Few Users – proliferation of zombie blockchains, including Ripple’s XRP, Bitcoin Cash, Litecoin, and Ethereum Classic, which continue to trade at high valuations despite limited utility and user adoption, presenting challenges for investors and regulators alike. Read here
  
  
• Debt and Enduring Resilience: A Perspective on Financial Stability – The enduring success of ultra-durable businesses called “shinise” and highlights how their aversion to debt enables them to withstand centuries of calamities, offering a perspective on debt as a constraint on life’s volatility and the importance of maintaining options and flexibility. Read here
  
  
• Stoic Wisdom: Navigating Market Volatility and Investing with Serenity – Explores the tendency for investors to panic over geopolitical events, emphasizing the importance of maintaining a stoic mindset, avoiding macro tourism, and sticking to diversified, long-term investment strategies amidst market volatility. Read here
  
  
• Unlocking India’s Investment Potential: Shifting Paradigms for Economic Empowerment – How India’s traditional asset allocation has led to significant wealth loss, emphasizing the need for a shift towards equity and diversification to unleash greater growth and economic prosperity. Read here

Economy

• Navigating Valuation Multiples: Understanding Differences and Linking to Fundamentals –Counterpoint Global Insights explores the limitations of valuation multiples and their divergence due to shifts in investment trends and capital structures, highlighting the challenges in accurately reflecting company fundamentals. Read here
  
  
• India’s Thriving AI Ecosystem: Driving Innovation on the Global Stage – India’s AI sector is booming, marked by significant contributions to global AI research and GitHub projects, though challenges in data quality persist, with government initiatives and investments driving innovation and development. Read here
  
  
• SEBI’s Face Value Reduction Boosts Retail Participation in Bond Market – SEBI’s decision to reduce the face value of privately listed NCDs to Rs. 10,000 from Rs. 100,000 is hailed as a game-changer, opening doors for increased retail participation in the Indian debt market. Read here

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CAGRwealth smallcase portfolios

Both our smallcase portfolios are ranking well in the smallcase universe in terms of 1 year returns.

• CFF (launched in June 2022) – Ranked among Top 20 smallcase with medium volatility.
• CVM (launched in May 2022)  – Ranked among Top 40 across the smallcase universe.

Do check it out here.

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That’s it from our side. Have a great weekend ahead!

If you have any feedback that you would like to share, simply reply to this email.The content of this newsletter is not an offer to sell or the solicitation of an offer to buy any security in any jurisdiction. The content is distributed for informational purposes only and should not be construed as investment advice or a recommendation to sell or buy any security or other investment or undertake any investment strategy. There are no warranties, expressed or implied, as to the accuracy, completeness, or results obtained from any information outlined in this newsletter unless mentioned explicitly. The writer may have positions in and may, from time to time, make purchases or sales of the securities or other investments discussed or evaluated in this newsletter.