Linkfest: February 21, 2018

-
What I am reading today

Are Markups Increasing? (ProMarket)
Failures of land tenancy in Pakistan (India at LSE)


Why Decentralization Matters (Andreesson Horowitz)
Hedge Fund Activism in Japan: Why Doesn't it Work? (Oxford Business Law Blog blog)
Solving the productivity puzzle (Mckinsey)
Research Insights on Titles for Health Coaches (Center for Advanced Hindsight)
Why Family Firms Lack Analyst Coverage (INSEAD Knowledge)
Why Artificial Intelligence Researchers Should Be More Paranoid (Wired: Business)
We Forget That Everything Is Relative (Behavioral Scientist)
A Tale of Two Markets, Continued (Daily Reckoning)

Comments

Post a Comment

Most Popular Posts

Warren Buffett's 2017 Letter: Takeaways for Indian Investors

-
Warren Buffett's shareholder letter for the year 2017 was released a few days back. I am going to take some of the themes in this year's letter and provide an Indian context and takeaway. (For a collection of past shareholder letters organised and annotated around major themes, please check - ' The Essays of Warren Buffett ' by Lawrence Cunningham ). 1. Valuations are expensive. So Buffett didn't do any big deals last year. Others may ignore the level of prices and pay any price to do deals. But not the Oracle of Omaha. - Indian valuations are stretched too. The Sensex P/E currently stands at 23.xx. High PEs tend to foreshadow lower returns in the next few years, till valuations moderate. A wonderful table compiled by Stableinvestor.com  shows this trade-off very well. With a starting PE of 24+ (which is very close to current levels), the 3 year return has been -5% historically. The takeaway for Indian investors is: valuations are stretched. The thing to do now...
Read more