THE WEEKEND BULLETIN (Vol. 1 | Iss. 5)

Dec 21, 2019

Volume 1 | Issue 5 | December 21, 2019

Section 1: Investing Wisdom

There are many ways to measure whether a stock is cheap or not. Some of the most common metrics include price/earnings, price-to-book, and price-to-cash-flow ratios. But which valuation metric should investor's focus on, and why? This article attempts to answer this question with some back-tested data.
An investment team performs better than a standalone investment manager. Quite obvious, you might think. Well then, how big a team do you think is ideal? Read on to find out.
There is a definite advantage that individual investors have over institutional investors: Institutional investors, by design, cannot own most multibaggers. Read on to find out why.
On a similar thread, here is a note that I had written in November 2016 on why multibagger returns are hard to come by for most investors.

Seat-belts were introduced as a safety mechanism for drivers. However, they ended up increasing rash driving - an ‘unintended consequence’ of a good intention. A similar outcome awaits the auto industry - this time with respect to driver-less cars - if this study is to be believed.

We live in a world of information abundance. We are constantly bombarded with an overload of information, leaving us with hardly any time to process it. Consequently, our attention spans are shortening and our retention rates are falling. Our thoughts now live and die in-between the ping and ding of notifications. Is there a way out? Here is a system that I have found useful in dealing with the information tsunami.

A book - all of 72 pages (18 sheets of paper folded into half), which is a hand-written manuscript about no one topic in particular – is amongst the most expensive books ever sold. Interestingly, you might have seen some of the pages of this book as screen savers or wallpapers on your computer. Titled ‘Codex Leicester’, this manuscript is a collection of scientific writings of Leonardo Da Vinci, and was purchased by Bill Gates for USD 30.8bn in 1994.

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Have a wonderful weekend!!

- Tejas Gutka.

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