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Pleased to release our latest newsletter. I have presented analysis to evaluate current sentiments and ground reality. I have rarely seen such a big divergence between the two. Hope you find some value.
sageoneinvestments.com/sageone-invest…
Samit Vartak CFA
630 posts
Samit Vartak CFA
@SamitVartak
Chief Investment Officer, SageOne Investment Managers LLP. Money shouldn't overshadow the bigger purpose of life.
- As markets are hitting all-time high, material wealth for many is also at all-time high. Is our happiness also at all-time high? While introspecting, I penned down some thoughts. Apologies if I sound preachy.
- Is the India equity market really at peak valuation and are we at the end of a bull cycle? I have presented results of an analysis that is against the general consensus view and may surprise many. Do read in my latest memo. Hope it is helpful. sageoneinvestments.com/2021/09/
- My daughter’s 2 classmates from NID Ahmedabad traveled to Israel as exchange students just before the war broke out. One of the student who holds an Indian passport was evacuated and brought back but the other who is an OCI holder (US passport) is stuck in the war zone. His
- Today Apple's market value is the same as all the listed companies in India. Hypothetically, if you had the money, which would you buy for the next 20 years? For me, if Apple is a good investment, then India is a great Investment
- Everyone please be careful even after full vaccination. My driver's father, my mother in law and her two Aunts got COVID (all fully vaccinated couple of months ago) in the last couple of weeks. Three couldn't make it. It is still dangerous to let our guards down.
- This is one of the most in-depth interviews I have given. I won’t focus much on the multi-bagger returns, but my learnings of what really worked. I have tried my best to explain. Multi-bagger returns look good in hindsight, but have also made many mistakes. Have spoken about
- When one loses 30, 40, 50% of the portfolio value, you get a sinking feeling of being set back by years. Mar'09 was peak of such sentiments, but 66% of the cos more than doubled in 3 mos and 62% of cos more than quadrupled in 20 mos. Markets love doing the unthinkable.
- Please do listen to this talk which isn't the regular market talk. Might find interesting.
- In 2018/19 we were not doing so well and I blamed the markets. Now we are doing very well and I again blame the markets.
- Above is an analysis of large, mid and small caps by business buckets which generally have vastly different PE multiples because of their inherent nature. PSUs and banks trade at relatively low PE multiples and hence depending on their size in a universe, skews the weighted PEx.
- In the last 10 years, barely 5% of the listed Indian companies (with at least 10 crs PAT) grew earnings by > 20%. Against that 55% companies had earnings decline. If earnings drive returns, shows how difficult it is to compound wealth by > 20%. Recent easy markets an abberation.
- In this memo I discuss: - stunning returns and risk profile of investing in cyclical stocks vs quality stocks - the bull market since 2020 and comparison with 2003-2008 - 20 yr history of key financial ratios for corporate India Hope you find some value sageoneinvestments.com/2024/10/
