Open Question to fellow investors tracking Music Industry.
A business like Universal which controls more than 1/3rd of all published music globally is selling for less than 6x FY20 Sales.
Why are Indian businesses like Saregama / Tips selling for 11x, 20x their sales?
FY 20 Revenues ~ 8.87 B USD or 7.4B EUR
Catalogue of Music includes every international artist you can possibly name
Either Universal is grossly undervalued or Saregama/Tips are grossly overvalued.
Homework for all the interested participants here:— Intrinsic Compounding (@soicfinance) June 27, 2021
Q1.Why 20% and not 50%+ Margins for UMG
Q2. Differences in dynamics between Western&Indian cos?
Q3. Trends in West vs Trends in India in the industry.
Research and find the answers. My job is done \U0001f601\U0001f64f
If you see the ebitda of universal music its low 20% compared to our saregama 30% or tips 50%. So when you compare earnings saregama is 40x and tips is 30x and universal music is 30x. Also these type of companies are less( low or no capex with excellent and growinh cashflows)— Srikanth V (@mynameisnani75) June 27, 2021
The rights are different here in India.— Saket Reddy (@saketreddy) June 27, 2021
Indian labels own both publishing and master rights unlike the global peers.
Hence the 80% EBITDA Margins vs 20% EBITDA Margins for UMG.
Comparing them isn't useful IMO but should be only referred to study the Industry structure.
1. You own both the recording and publishing rights in India— Saket Mehrotra \U0001f60e\u2615\U0001f4b0 (@mehrotra_saket) June 27, 2021
2. Streaming business in India is 85% of the industry compared to 52% globally
3. You should look at FY21 number for Tips as that is pure-play music streaming
4. Headroom in India builds optional value for paid converts https://t.co/mOBj83uZgH
All throughout the world, largecaps sell at lower valuations than smallcaps. Larger room for growth. + India growth narrative. + More rights with labels in India. + The whole bollywood industry means that imo moat is wider in india for indian labels than at global stage for umg— Sahil Sharma (@sahil_vi) June 27, 2021
I think valuations based on sales is suitable only when the current profitability does not reflect the true profitability of the business. In the end valuations are based on profits— Ankush Agrawal (@Ankush__Agrawal) June 28, 2021
UMG and Tips have very different margins and thus comparison based on sales is not a great way 1/2
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Thrilling and Insightful 💰
Joys of Compounding by @Gautam__Baid teaches you various aspects of the magic that is compounding.
From finance to more importantly how compounding lessons in life play an important role.
This one has both lessons in life and investing packed into one.
Highly recommended 🌱
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Steven Levy is one of my favourite authors 🔍
If you're a fan of history and geopolitics then this one is for you.
The Rise and Fall of Nations by Ruchir Sharma has to be one of the best books written on global political landscape and the rules that govern them today. 🌇
Grab a cup of coffee, in this thread I will explain
1. What is a Dividend Discount Model?
2. What are its main components?
3. How to use it to value a business?
Lets dive right in.
Before I explain what a Dividend Discount Mode is, lets understand what is the main crux of valuations?
The entire reason behind valuing something is to determine, how much return your investment will generate within a specified period of time.
Return here stands for the cash flow generated by the asset.
Every asset by its nature, will generate returns.
For Fixed Deposits = Returns are Interest Payments
For Real Estate = Returns are Rent Payments
For Debt Securities = Returns are coupon payments
For Stocks = Returns are Dividends + Any Appreciation in Stock Price
To perform the exercise of valuation means to determine what these returns are worth today.
Cause Rs 100 today is worth more than Rs 100, 10 years later.
Next couple of months are good for bottom fishing
High growth stocks with sky high valuations will finally come down to Earth🌎
My shopping list includes the below
High Risk 🅾️
Two frequent questions
1. What website to use for data?
2. How do
Ans'ing other Qs, don't know all the companies, there are too many to track & I stick with what I know
Don't feel FOMO, entire year high growth names will correct
Hunt for picks within recent SPACs, most are duds, but higher chances you find a
But did you know there is another asset class that rose by over 2000% since Dec
Todays thread is about Credit Default Swaps, an asset class only accessible to the ultra rich 🧵👇
This thread is divided into the following parts
1. Basics & History of Credit Default Swaps
2. How Russian CDS rose over 2000%?
3. Why these instruments are limited to the ultra wealthy?
4. Can you profit indirectly from CDS?
Credit Default Swaps belong to a category of derivative products called Swaps.
Derivative products are usually of two kinds
1. Standardized Derivative Products like Futures and Option Contracts that are traded over the exchange
2. Non Standardized Over the Counter Products like Forwards and Swaps
Swap at its simplest is an agreement between two parties to exchange a series of cash flows for a set period of time
Swaps were basically invented to help large banks and companies manage their interest rate and currency exposures
More from Music
I first met Kate at a rehearsal for Wayne Sleep's 1983 touring dance show DASH, for which I was composer. What struck me first about her (apart from the poetic lilt of her warm, Edinburgh accent) was the impeccable care she was taking playing piano for dance rehearsals /2
(believe me, & I mean no disrespect to lovely dancers & choreographers but playing piano for dance sessions isn't called REPETITEUR for nothing and many repetiteurs switch to auto-pilot at the keys. Kate never did. Her playing was always immaculate)/3
We hit it off immediately & had long, ranty discussions about how we wanted to change musical theatre, like young people do. We had specific aims to do with the way singing was taught & shaped for the stage. /4
We wanted the singing to be much more text & meaning-focused, for actors to have the confidence to sing as well as trained singers & for the sound to be more nuanced, more plural in style & less belty & samey (tbh not sure we won that battle..) /5
I say this out of need to the larger lesson to creatives, i'd hate to restrict this to Christians alone
I love Frank Edwards, his songs form a huge part of my morning worship routine. But for the past two weeks, I've been looking for a song that I used to play a lot in my first/second year of uni and couldn't find it until I searched a random part of the lyrics and went as far as..
The 6th page on Google search. Yes, that's how badly I wanted it.
Even when I found the name of the song, the song was available as a lyric video on YouTube and published by someone entirely different from who I wanted to give streaming dollars to, that's if it counts for much.
Hit another bump. I want to subscribe, and I realise there's over 11 Frank Edwards on YouTube. Each with huge and growing subscriber numbers, that was worrying.
It was not until this morning I found one with 250k subscribers and I thought... Ah this has to be him.
I search on Google for Frank Edwards and his entire discography isn't listed on Google and it in fact worried me.
Now I am moving to upset because this is someone I love deeply and hate to see how there's so much low hanging fruit that he isn't taking advantage of.
Capítulo: “Conversations - On Schnabel and Interpretation with Konrad
En esta conversación de 1979, Alfred Brendel y Konrad Wolff, autor de “The Teaching of Artur Schnabel. A Guide to Interpretation”, discuten sobre ciertos puntos en los que Brendel no coincide con Schnabel.
Para Wolff, Brendel es el primer pianista desde Schnabel que ha gozado de plena autoridad en la interpretación de Mozart, Beethoven y Schubert. Además, en su opinión, su enfoque tiene mucho en común con el de Schnabel en los detalles de fraseo, tempo y dinámicas.
Sin embargo, hay varias opiniones en las que Brendel difiere de Schnabel. Para Brendel, las frases son como curvas que no necesariamente se miden por compases: “Very often for me the art of phrasing consists in forgetting about bars, ignoring bars and seeing large units”.
Por su parte, de acuerdo a Wolff, Schnabel veía las frases en función de la respiración y del énfasis al principio o al final: “he wanted to know how far he was to play before there was a breath (…), a phrase begins and then goes from there, or else it ends and goes to there”.
Capítulo: “Conversations - Talking to Brendel with Jeremy
Ya casi llegamos al final de este maravilloso libro. En esta sección, Brendel comparte varias entrevistas. La primera de ellas fue en 1972 con Jeremy Siepmann, músico, locutor, articulista y autor de varios libros sobre música.
Si bien después de 377 hojas ya tenemos una buena idea sobre las opiniones de de Brendel sobre la música y el quehacer musical, en esta entrevista revela varios puntos de vista.
Sobre si disfruta interpretar música, Brendel responde que sí, sobre todo en los últimos años, “when I’ve had the impression that much of what I do comes across. Of course, one very rarely knows if the right things come across)”.
Sobre si los intérpretes existen para vincular al compositor con el público, Brendel afirma que le interesa más la relación del intérprete con el compositor que con el público: “What fascinates me is to make sense of a piece of music while it sounds”.
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Donald Dewar said: “I should be the last to challenge the sovereignty of the people, or deny them the right to opt for any solution to the constitutional question they wished. For example, if they want to go for independence, I see no reason why they should not do so." JC
"In same debate Alex Salmond went on to emphasise that “… the Claim of Right referred to sovereign right of the Scottish people to determine a form of Govt best suited to their needs. It did not suggest sovereignty resides with English Members of Parliament." Joanna Cherry
Joanna Cherry: "Donald Dewar articulated the democratic norm later enshrined in the Edinburgh Agreement. His concession laid the foundation for the 2014 referendum in recognising the rights of Scots to choose whether to remain part of our voluntary union with England."
"I am wholly in agreement with view that we must find a legal & constitutional way to demonstrate that public opinion in Scotland has changed since 2014 referendum, in order for our independence to be internationally recognised & therefore meaningful." Joanna Cherry
और उन्होनें ब्रह्मविद्या का ज्ञान अश्विनि कुमारों को दे दिया। गुप्तचरों के माध्यम से जब खबर इन्द्रदेव तक पहुंची तो वे क्रोध में खड़ग ले कर गए और महर्षि दधीचि का सर धड़ से अलग कर दिया।मगर अश्विनी कुमार भी कहां चुप बैठने वाले थे।उन्होने तुरंत एक अश्व का सिर महर्षि के धड़ पे...
...प्रत्यारोपित कर उन्हें जीवित रख लिया।उस दिन के पश्चात महर्षि दधीचि अश्वशिरा भी कहलाए जाने लगे।अब आगे सुनिये की किस प्रकार महर्षि दधीचि का सर काटने वाले इन्द्र कैसे अपनी रक्षा हेतु उनके आगे गिड़गिड़ाए ।
एक बार देवराज इन्द्र अपनी सभा में बैठे थे, तो उन्हे खुद पर अभिमान हो आया।
वे सोचने लगे कि हम तीनों लोकों के स्वामी हैं। ब्राह्मण हमें यज्ञ में आहुति देते हैं और हमारी उपासना करते हैं। फिर हम सामान्य ब्राह्मण बृहस्पति से क्यों डरते हैं ?उनके आने पर क्यों खड़े हो जाते हैं?वे तो हमारी जीविका से पलते हैं। देवर्षि बृहस्पति देवताओं के गुरु थे।
अभिमान के कारण ऋषि बृहस्पति के पधारने पर न तो इन्द्र ही खड़े हुए और न ही अन्य देवों को खड़े होने दिया।देवगुरु बृहस्पति इन्द्र का ये कठोर दुर्व्यवहार देख कर चुप चाप वहां से लौट गए।कुछ देर पश्चात जब देवराज का मद उतरा तो उन्हे अपनी गलती का एहसास हुआ।
Once a goldsmith by the name of Narhari lived in Pandharpur. He excelled in his craft. He had vowed not to look at Pandurang or visit his mandir ever, as he was a Shiva Bhakt.
One day, a wealthy merchant visited him.
He wanted a gold girdle studded with precious gems, to be made for Prabhu Vitthal. Narhari refused to make it as it was for Vitthal.
After many requests, he agreed to make the girdle but asked the merchant to bring the measurement from the mandir as he himself would not go there
The measurement was given n he made the girdle. When the girdle was put on Vitthal, it was loose. Narhari had to shorten it. Now the girdle became tight. So Narhari was forced to take measurement on his own. He had to go to the mandir but went blindfolded to avoid seeing Vitthal
In the Mandir, when blindfolded Narhari touched Vitthal, he felt as if he was touching Shiva with matted hair, the moon, snake in His neck and Trishul in His hand. Ecstatic with joy, he removed the blindfold to see Shiva but he found the murti of Vitthal with Rukmini there.
He realised the truth that there was no difference between Vitthal and Shiva. Narhari at once fell at the feet of Panduranga. He then took the measurement of the waist of Vitthal and this time the ornament fit the Murti perfectly.
Mitesh Sir's Positional Option Selling 101:
• How to find direction
• Which options to sell
• How to deploy capital
• Exit criteria
• What ROI he targets weekly
• What % risk he takes
Done with the help of @niki_poojary
How @Mitesh_Engr Sir finds the direction?
• Daily charts S/R
• 75 min charts S/R
• Intraday trend
• Always play directional
• Never trades in strategies
Which options to sell in weekly expiry according to @Mitesh_Engr?
• Weekly candle High/Low
• Sell 1% away options from those
• Exit when levels breached
Position Sizing by @Mitesh_Engr Sir.
How to deploy your capital?
• First sell 20%
• Pyramid the next day
• When to exit
• What to do when view goes wrong
• What to do with idle capital
Some important tweets of @Mitesh_Engr Sir
• What Data to look at
• ROI for safe players per month
• Max risk per day
• Gather knowledge and play directional
• Never play strategies
I wish I had this... — don't excuse yourself. Forget about what you can't and focus on what you can.
Stop comparing yourself to others, come from the point of what you have, know and have: "I can... so I will do..!" #MyMindset
BTW this was an update of one of the previous tweets. And I'm continuing this thread today!
Focus only on positive things! These include what *you* have, know and can do. If you don't have, know or cannot do something either get it or ignore it. Don't think about it and don't use it as an excuse.— Gleb Sabirzyanov (@zyumbik) October 17, 2018
I've been struggling to follow this principle for a long time. #MyMindset pic.twitter.com/SK5vtwHs3G
Do something for the long-term. Everything else is a distraction. 🛑 Nowadays I always check if the thing I'm doing aligns with my long-term plans. If not — that is probably not the best thing to do at the moment. #MyMindset
The only way to get more done is to have less to do. Eliminate your obligations, say "no" to things that are not important, stay minimal in what you do, focus. Being busy is not equal to getting things done. #MyMindset