"There is nothing in a caterpillar that tells you it's going to be
a butterfly."
— R. Buckminster Fuller
(American, 1895-1983)
Word for the day
Magesterial (adj)
Of, relating to, or
befitting a master; authoritative; weighty; of importance or consequence
Malice towards none
Like the monsoon outside,
will the monsoon session inside the parliament also end deficient?
First random thought this morning
For a common citizen of India, conditions are quite challenging.
One sees good things only in political and governments' official claims made
through social media and public speeches. Otherwise, media reports are full of depressing
or frivolous news. Talking to people these days is also not a good experience.
The discussions invariably turn violent on slight disagreements. Unfortunately,
people are taking political stands on mythical grounds rather than ideological
basis.
We urgently need a leadership that can shift the paradigm and turn
the narrative to optimism and positivity!
Quality Bubble
A cursory search through the market news headlines in past one
month will throw, inter alia, the following items:
(a) HDFC Bank becomes the
most valuable bank in emerging markets outside China.
(b) Reliance Industries
tops US$100bn in market cap making Mukesh Ambani the richest Asian.
(c) Nestle India market
cap crosses Rs1trn.
An analysis of current portfolios of top 25 mutual fund schemes
shows that their portfolios are highly concentrated in a handful of stocks,
irrespective of the original mandate of the fund or expectations of the
investors.
The "Quality" has become unsustainably over-owned and
unreasonably expensive. While it is matter of debate whether the
"reasonable valuation" is an essential parameter for judging quality
of a stock, nonetheless "crazy" is not a characteristic of quality.
I sincerely believe that the so called "quality basket"
is treading in the bubble territory and is avoidable for any fresh investment.
I am rather inclined to take out some money from this and put in the stocks that
have become quality due to undue price correction.
The following is an illustrative list of "quality"
stocks, which find favor with most institutional investors these days.
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I shall share my investment strategy in the current market scenario tomorrow morning.
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