UPDEX EXCHANGE

While focusing on the most lucrative industry and investing in it can be advantageous, failure to identify capable leaders within it will result in losing the game, whether in the short or long term. The essence of long-term value investing lies in a straightforward approach: identifying undervalued players and investing in them. Although there are various methods to analyze whether a company is undervalued or overvalued, it ultimately depends on the investor's approach to justify their perspective. Indeed, one can analyze metrics such as price-to-book value, price-to-earnings ratio, or discounted cash flow method. It's an art that solely depends on the investor to make the best out of it. For example, I usually follow the price-to-book value approach. If a company is trading below its price-to-book value, I'll consider investing in it. Sometimes, I also look into the discounted cash flow method. It entirely depends on the individual and their approach. For me, DCF and PB help me gauge the true value of any corporation. While valuation is crucial, it's not the sole factor to consider when making investment decisions. There are numerous aspects to evaluate before making any investment decision, each contributing to the overall assessment of a potential investment. Learning various approaches to screening good investments, experimenting with them while considering your own psychology, and ultimately mastering one or two approaches can significantly enhance your investment skills and decision-making abilities. It's about finding what works best for you and aligning it with your investment objectives and risk tolerance. I hope it will help boost learning! One disclaimer: My writings reflect personal experiences and not necessarily advice. Conduct your research for making any investment decisions!

Cryptocurrencies will shape the future; grasp this idea early to avoid regrets later! Let me say it again in simpler terms, so it's clear to your ears: Cryptocurrencies are the future. Get it?

Whenever you decide to invest your capital in equities, whether it's from any sector or the company falls into mid, small, or large caps, always conduct a sector analysis related to the company you're investing in. We typically perform this before making any long-term holding decisions. Sector analysis provides insights into the historical, current, and potential future growth of a specific industry. It involves assessing factors such as the average growth rate, industry PE, PB, EBITDA, etc. and studying the growth cycle over time. This analysis is crucial for making informed investment decisions, projecting trends for the next 5-10 or 10-15 years, and gaining a comprehensive understanding of the sector's dynamics. It is a fundamental step that should not be overlooked in the investment process. Once you've completed the sector analysis, it's essential to identify companies aligning with or surpassing the industry's growth rate. Evaluate their revenue, with a focus on revenue from operations. Additionally, pay attention to key financial metrics such as PE (Price-to-Earnings ratio) and PB (Price-to-Book ratio) for a comprehensive assessment. Moreover, prioritize profitability when selecting companies. Focus on debt-free entities, or if they have debt, it should be minimal and manageable. If you've made it this far, I hope you enjoyed reading it as much as I enjoyed crafting it. May it enrich your understanding. Disclaimer: I enjoy writing about the topics aligned with my interests. Anything mentioned here is for educational purposes and shouldn't be considered as advise!

I've invested all my capital exclusively in pure equity, focusing on mid-cap and small-cap stocks across sectors such as Automobile, FMCG, Pharma, Gaming, Tech, and various other emerging sectors. Likewise, within the company, our portfolio is structured to allocate nearly 70% of the total capital to small and mid-cap equities. The remaining thirty percent is strategically invested, with a majority in Fixed Deposits (FDs) and a portion in highly liquid ETFs. As a company, this diversification helps us address unforeseen capital needs. We allocate the remaining 30% of our capital to highly secure asset classes. The rationale is straightforward: as a company, we aim to safeguard against various scenarios, including addressing short-term capital requirements and other potential contingencies. For someone possessing a solid understanding of financial market mechanics, coupled with intermediate-level proficiency in analyzing macro and micro indicators, geopolitics, and staying informed about developments in the country's emerging sectors. Identifying growth opportunities becomes feasible. In addition to the aforementioned aspects, having a sound ability to analyze sectors is crucial. This involves assessing the average growth rate of a sector, understanding its potential for future growth, and making decisions based on these insights. The final step is analyzing the company before making an investment. I'll post later about the parameters we typically consider while filtering companies for further investigation. Hope you enjoy reading! Disclaimer: I enjoy writing about the topics aligned with my interests. Anything mentioned here is for educational purposes and shouldn't be considered as advise!

Making investments in the public market, I have a personal preference for mid and small caps. They have been my all-time favorites and align well with my approach, proving quite beneficial over the last 6 years, especially in the last 2 ½ years. That's the strategy I adhere to. Clearly not recommendable to do this as getting into small and mid-caps poses high risk along with high rewards. I generally don't prefer mutual funds or SIP, but sometimes, if things feel good to me, I hold a few SGBs and some popular, highly liquid ETFs. These are my approaches to personal fund management, in addition to making decisions for my companies where too I deploy capital into various financial instruments. Every individual has their unique style of investing. While learning from others can be helpful, but long term survival and success comes from doing your research and analysis, backed by all the necessary data. I hope it will add value to your learning! Disclaimer: I enjoy writing about the topics aligned with my interests. Anything mentioned here is for educational purposes and shouldn't be considered as advise!

With the constant updates on economic changes and fluctuations in global markets, yield curve inversion in bonds, my advice is to avoid making decisions based on fear. Be patient. These are temporary fluctuations that won't have a significant impact in the long run. Instead of panicking over these short-term changes, it's important to stand firm by our decisions. For participants following a long-term value approach, these challenges might affect your psychology temporarily – be it for days, weeks, or months. However, it's crucial to stay calm, as maintaining a composed mindset is your best weapon to navigate through these choppy and highly volatile conditions. For short-term participants following a growth approach, exercising caution is essential when deciding to exit or establish fresh positions, irrespective of whether it involves large, small, or mid-caps. Expect the possibility of increased turbulence, resulting in heightened volatility over the next few days, weeks, and possibly months. Exercise caution and, at the same time, practice patience. This year is expected to be challenging, given factors such as the U.S. presidential elections, the escalating Israel-Palestine conflict, and the long ongoing tensions between Russia and Ukraine. In conclusion, I view the current scenarios as integral parts of the ecosystem. They are not likely to pose significant threats in the years to come. Stay patient and refrain from making impulsive decisions driven by FOMO or any other factors. Disclaimer: My views shared here are personal opinions and not financial advice. Please conduct thorough research or consult with a financial professional before making any investment decisions!

Let's explore the potential reasons for the yield curve inversion in the Indian debt market. In the last couple of days, we've seen the yield curve inversion in the Indian debt market, resulting in an inversion in the yield between the 182-day T-bill and 10-year G-Sec. Before delving deeper, let's grasp the concept of 'yield curve inversion'. It indicates that shorter-term bonds are trading at higher yields than longer-term bonds. While there could be various reasons behind this phenomenon. The primary reason is that investors lack confidence in the long-term outlook, resulting in higher supply of long-term bonds and a lower demand, ultimately causing lower interest at maturity. The second reason reflects positive sentiment for shorter durations, leading to significant demand for bonds maturing in a short duration (e.g., 182-day), ultimately driving interest rates higher than those for long-term bonds. Setting aside formal commentary from experts, let me share my perspective on this scenario. Initially, I believe that institutions such as FIIs, DIIs, HNIs, and UHNIs are generally optimistic in the short run, typically over the next 3-4 months. Secondly, experts anticipate downward movements in the market after a few months, leading major players to focus on short-term bonds. Thirdly, with general elections expected to commence in April (I believe), this factor may contribute to a more pessimistic outlook in the long run. Stay cautious as no one really knows when or how things will unfold. Let's see and hope for the best! Disclaimer: I enjoy writing about the topics aligned with my interests. Anything mentioned here is for educational purposes and shouldn't be considered as advise!

Great news! The SEC has approved the Bitcoin ETF, and it is set to be traded on various exchanges starting Thursday. This marks a significant step towards the future of cryptocurrencies and decentralized financial ecosystems. Before we dive in, let's understand what an ETF is and then talk about the Spot Bitcoin ETF. An ETF is a basket of financial securities that allows investments without directly buying the assets. They are traded on regulated exchanges. Now, the Spot Bitcoin ETF is an investment instrument that directly invests in Bitcoin rather than its future contracts. With this approval, anyone, whether an individual or an institution, looking to diversify their investment holdings can now get exposure to Bitcoin. For those skeptical about the future of cryptocurrencies, this approval by the world's most renowned market regulator is a strong indication about what the future is going to be with regards to crypto. Though the adoption of Cryotocurrencies is not widespread everywhere right now. In the years to come, a handful of the most popular ones are in the line to dominate the financial landscape. Whether by choice or by force, adopting it seems inevitable. That's the outlook for the future. I won't recommend jumping in immediately. The price volatility at this moment is extreme, and there could be significant fluctuations. Give it a week or two for the dust to settle. Here are some suggestions if you're considering this new instrument: 1. Study the crypto market thoroughly, including market size and top cryptocurrencies. 2. Analyze past and present volatility and try to predict future prices. 3. Look at trading volumes and follow where smart money is going. 4. Observe holdings of big firms like BlackRock and Grayscale. 5. Don't rush to invest a significant portion of your capital. 6. Start with a small exposure, maybe 2-4%. If you found this information valuable, like and share your thoughts in the comments. Feel free to share it with your community. For more insightful content, follow me on LinkedIn and turn on post notifications by clicking on the bell icon on the profile. Don't miss out on my future posts and updates!

It had been a considerable amount of time since I last posted on my social media profile. The reason is clear: I've been really busy for the last few years doing and creating things that I find most exciting. The year 2023, now gone, will stand out as the most unforgettable time of my life. It was a mix of thrilling experiences, learning, and progress in the things I was deeply involved in. Throughout this entire year, there hasn't been a single day when we were free. What I've learned over the course of these twelve months is how the groundwork laid by small things, ideas, and their execution can generate significant impacts. This year holds a special place for various reasons. We attained validation for our strategy, marking the first profitable milestone in our journey since we began several ventures back in 2021. Getting the office space in Bengaluru felt unbelievable to me. Now, we're moving on to the next phase of growth, which I believe will be truly exciting. This year will be more thrilling and challenging than the previous ones. To those who know me personally or in any way, the reason for my absence is due to these circumstances. As part of my 2024 plan, I aim to create content, engage a larger audience, and be active on various social media platforms. I'll strive for consistency, balancing it with my main priorities if I have the time. We'll keep you informed about our progress, achievements, and milestones not only this year but also in the years ahead. I wish all of you a life filled with goodness, health, and prosperity ahead. Happy New Year to everyone! Signing off with this note. Until next time, goodbye!

Let's explore the potential reasons for the yield curve inversion in the Indian debt market. In the last couple of days, we've seen the yield curve inversion in the Indian debt market, resulting in an inversion in the yield between the 182-day T-bill and 10-year G-Sec. Before delving deeper, let's grasp the concept of 'yield curve inversion'. It indicates that shorter-term bonds are trading at higher yields than longer-term bonds. While there could be various reasons behind this phenomenon. The primary reason is that investors lack confidence in the long-term outlook, resulting in higher supply of long-term bonds and a lower demand, ultimately causing lower interest at maturity. The second reason reflects positive sentiment for shorter durations, leading to significant demand for bonds maturing in a short duration (e.g., 182-day), ultimately driving interest rates higher than those for long-term bonds. Setting aside formal commentary from experts, let me share my perspective on this scenario. Initially, I believe that institutions such as FIIs, DIIs, HNIs, and UHNIs are generally optimistic in the short run, typically over the next 3-4 months. Secondly, experts anticipate downward movements in the market after a few months, leading major players to focus on short-term bonds. Thirdly, with general elections expected to commence in April (I believe), this factor may contribute to a more pessimistic outlook in the long run. Stay cautious as no one really knows when or how things will unfold. Let's see and hope for the best! Disclaimer: I enjoy writing about the topics aligned with my interests. Anything mentioned here is for educational purposes and shouldn't be considered as advise!