Linkfest: July 23, 2018

-
What I am reading today

Guyana estimate of the day (Marginal REVOLUTION)
What is a heat wave? (Economist Explains)


Hidden Gems: Big ambitions, bold ideas (Forbes India Magazine)
Problem sellers of incomplete houses face (Mint)
China Tower taps Alibaba, ICBC, Hillhouse as cornerstone investors in US$8.7 billion IPO (SCMP: China Tech)
The slow, light touch of AI in Indian Saas (FactorDaily)
Wealth concentration and political capture as threats to our social order (Gulzar Natarajan: Urbanomics)
Video on reinventing and Retirement.. (Subramoney)
"But we are here to see the 'slum': counter-conceptualising 'slums' in Mumbai and beyond (India at LSE)
Biggest Earnings Headwind Is Strong Dollar, Not Trade (BRIC Breaker)

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