It's the weekend!

Grab a cup of coffee, in this thread I will explain

1. What is index investing?
2. Why S&P 500, Nasdaq 100 and DIJA are different?
3. How to create your own indexes?

Let's dive right in.

You may have noticed at the start of every book, there is a page which lists out various chapters and the page number for each chapter.

This is called the index of contents of the book.

It helps you understand what is where and give you a general idea how to read the book.

Similarly in the world of finance, we have financial indexes that are used to indicate where the overall market is trading.

Is it high or is it low?
Is it cheap or is it expensive?

These questions can be answered by looking at the index.

Fun Fact: The first ever financial index created was the Dow Jones Industrial Average in year 1896

The world created a financial index before cars, airplanes and electricity were the norm!

Stocks in 1896 used to look like this, an index was helpful to understand economy levels

If you want to read more about the history of stock market, you can go through this

@Rohan_Se Trendlyne has all the research reports available for free for most stocks.

@Trendlyne

Here are all for Laurus

Whenever I am bored, I just go watch Alpha Series on @IIC_Conference
Learn something new everytime.

Watching @tusharbohra present on API industry
https://t.co/WYr2DIpVfD

Highly recommended.

EPC companies have razor thin margins, they aren't the places to bet on.

It's the commodity makers who make real money and within commodity makers it's the ones with least disruption to their price and limited competition.

In solar chain, these are the solar glass players ☀️👓

#IEX Annual General Meeting

This is pretty much all there is to valuations 👇🏼 I personally follow this same process.

(Excuse the handwriting, rough notes from CFA L2 Equity Valuations)

Prof. Damodaran is the OG.

Here is a playlist of his valuation class he teaches at NYU Stern.
The same lectures are recorded and uploaded for free for anyone to learn.

https://t.co/fraTT0gUUM

Education and Knowledge is freely available, just need to know how & where to look.

“I work on what product we should go after because that will ultimately decide how well we are doing,” says Chava, who has brought more than 50 products to market in the last 15 years.

Forbes Profile on Dr.Chava

If you want to learn about pharma CDMO industry market, this is a gem of a resource.

Available whenever you get your podcasts.

Wherever*

It's the weekend!

Grab a cup of coffee, in this thread I will explain

1. What is a Yield Curve?
2. Why is it an important indicator of Recession?
3. Is an Economic Recession around the corner?

Lets dive right in!

Before we understand a Yield Curve, lets get some of the basic terminology out of the way

1. What is a Bond?

A bond is a fixed income financial instrument which represents a loan made by an investor to a borrower

The investor typically receives payment in the form of interest and a lumpsum (principal) on maturity

The interest rate on a bond is known as coupon rate.

There are many types of bonds like

1. Zero Coupon : Pays both interest and principal at maturity
2. Sovereign Bonds : Issued by a Government or a Quasi Government Institution
3. Corporate Bonds : Issued by corporate like banks, established companies etc.

Coupon (Interest Rates) on a bond are decided based on the issuer's credit rating

The higher the credit worthiness of the issuer, the lower the coupon rate

Credit Rating on a Bond is usually assigned by credit rating agencies like Moody's or Standard & Poor's (S&P)

Semi conductor index is often considered a leading indicator of health of the economy

Micron: 'we see upcoming significant sequential declines in revenue & margins'

Nvidia: 'Will slow down hiring & control expenses as the company deals with a challenging macro environment'

You obviously haven't read my blog https://t.co/g2Ydiz1iU4
or even bothered to read the last couple to tweets on my profile.

If you had, you would know I am bullish on this theme for more than a year now.

At least make the effort to know someone before passing comments.

It's the weekend!

Grab a cup of coffee, in this thread I will explain

1. How I achieved financial independence before my 28th Birthday?
2. How a janitor become a millionaire?
3. How even you can live a financially healthy life by following a few concepts?

Lets dive right in.

This year before my 28th Birthday.

My Net Worth surpassed my Lifetime Earnings and I achieved my goal of becoming Financially Independent.

Financial Independence = When you do not have to work to earn for a living, you work cause you like to on whatever that makes you happy.

Talking about money is hard and uncomfortable and writing this thread, even I do feel a tad bit uncomfortable and exposed but its a conversation we need to have, cause its an Important one.

So many of us are treating and using money the wrong way cause we aren't taught about this very important life skill called Personal Finance either in school or college.

Somehow the world expects us to just figure it out as we transition to our adult lives.

I do not come from a wealthy family.
I grew up in a small town in India and did see plenty of financial hardship growing up.

Today, when I look back at those times, I feel glad that I went through that, cause it taught me the importance of Money at a very young age.

Perspective.