Linkfest: March 07, 2018

-
What I am reading today

The Fed Must Have Inflation. Failure Is Not an Option (Daily Reckoning)
Ola scales back electric fleet plans – becomes the first casualty in India's EV plans uncertainty (FactorDaily)


Masters of Science 2018 (FT Magazine)
The U.S.-China Rivalry Is, More Than Ever, a Fight Over Tech (NYT Technology)
Harvesting The Rain: How One Kerala District Is Solving Its Water Problem (IndiaSpend)
Why Tech Innovation Isn't the Answer Everyone Thinks It Is (Insead)
Short-Term Outperformance vs. Long-Term Outperformance (A Wealth of Common Sense)
Jeff Bezos tops Forbes's 'World Billionaires' list for the first time (Forbes India Magazine)
At This Crypto Event, the Attendees Really Were High (Wired)
Nota bene: Women on panels (Felix Salmon)

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