-14% of India’s GDP is spent on Logistic
-Organized market is 42%
-Growing at 10-15%
-Employs 2.2 cr
-Achieved Infrastructure status
-FY 14-18 attracted 1,00,000 cr FDI (2/n)
After writing on Banking & Paints, this thread focuses on the 'Logistic Sector'. Idea is to give a small start to the retail investors looking at investing in this space from where they can build on.
This thread covers,
- Macro
- Business Model
- 3PL & 4PL
- Valuation (1/n)
-14% of India’s GDP is spent on Logistic
-Organized market is 42%
-Growing at 10-15%
-Employs 2.2 cr
-Achieved Infrastructure status
-FY 14-18 attracted 1,00,000 cr FDI (2/n)
Logistic is traditionally seen as a warehousing & transportation business where goods, needs 2b transported 4m point A to B using Road, Rail, Ship or Air & can be stored at multiple warehouses before the consumer receives the product (3/n)
Container Corporation – 28,000 cr
Blue Dart – 10,000 cr
Mahindra Logistic – 3,500 cr
Allcargo Logistic – 3,000 cr
Gateway – 2,000 cr (6/n)
(A) Container Corporation
-Transportation of the shipping container from point A to B using the rail network
-Has monopoly in this business
-Globally more than 500 km of logistics is done through rail but in India it is still done through road (7/n)
(B) Blue Dart – Is in the traditional business of courier within India using Air & Road network (8/n)
(i) Multi-Modal - The multi-modal process usually begins with a container being moved by a truck to a rail, then back to a truck to complete the process (9/n)
iv) Contract logistic operations–Managing end 2 end 4m designing facility, warehousing, transportation, order processing & distribution, inventory management & customer service (11/n)
(E) Mahindra logistic - Mahindra Logistics is a 3PL (3rd party logistic) & 4PL player (12/n)
Imagine it to be like Uber. There is a traveler and a driver, Uber connects them and manages the entire logistics. (13/n)
ERP/API – Procurement planning, raw material, billing, working capital management, leasing out trucks & warehouse etc., now can be managed by the 3rd party logistics company (15/n)
https://t.co/UrRt87OLLF
Here\u2019s a compilation of Personal Finance threads I have written so far. Thank you for motivating me to do it.
— Kirtan A Shah (@KirtanShahCFP) December 13, 2020
Hit the 're-tweet' and help us educated more investors
More from Kirtan A Shah
Here’s a compilation of Personal Finance threads I have written so far. Thank you for motivating me to do it.
Hit the 're-tweet' and help us educated more investors
Yes Bank’s additional Tier 1 bonds, written off. Lakshmi Villas Banks Tier 2 bonds, written off. Understand what & why of ATI and Tier 2 bonds in this thread.
https://t.co/VBmV2dwpPn (1/n)
'Floating Rate Funds' - A case for debt investing in the current interest rate situation
Fixed Income investment strategies
It’s a misconception that FD, RBI Bond, PPF etc have no risk. The reason we don’t see the risk in them is because for us, risk ONLY means loss of capital.
Index Funds v/s ETFs
While index funds and ETF’s look similar, there are multiple differences you need to keep in mind before investing in either of them. Let me highlight the important ones
Hit the 're-tweet' and help us educated more investors
Yes Bank’s additional Tier 1 bonds, written off. Lakshmi Villas Banks Tier 2 bonds, written off. Understand what & why of ATI and Tier 2 bonds in this thread.
https://t.co/VBmV2dwpPn (1/n)
Yes Bank\u2019s additional Tier 1 bonds, written off. Lakshmi Villas Banks Tier 2 bonds, written off. Understand what & why of ATI and Tier 2 bonds in this thread.
— Kirtan A Shah (@KirtanShahCFP) December 4, 2020
Do \u2018re-tweet\u2019 and help us benefit more investors (1/n)
'Floating Rate Funds' - A case for debt investing in the current interest rate situation
'Floating Rate Funds' - A case for debt investing in the current interest rate situation (A Thread)
— Kirtan A Shah (@KirtanShahCFP) November 27, 2020
You should not miss this if you invest in Debt.
Do \u2018re-tweet\u2019 & help us benefit more investors (1/n)
Fixed Income investment strategies
It’s a misconception that FD, RBI Bond, PPF etc have no risk. The reason we don’t see the risk in them is because for us, risk ONLY means loss of capital.
Fixed Income investment strategies (Thread)
— Kirtan A Shah (@KirtanShahCFP) November 20, 2020
Do 're-tweet' & help us reach & benefit investors
It\u2019s a misconception that FD, RBI Bond, PPF etc have no risk. The reason we don\u2019t see the risk in them is because for us, risk ONLY means loss of capital. (1/n)
Index Funds v/s ETFs
While index funds and ETF’s look similar, there are multiple differences you need to keep in mind before investing in either of them. Let me highlight the important ones
Index Funds v/s ETFs
— Kirtan A Shah (@KirtanShahCFP) November 17, 2020
Do 're-tweet' so that we can reach a larger audience :)
(Thread)
(1) While index funds and ETF\u2019s look similar, there are multiple differences you need to keep in mind before investing in either of them. Let me highlight the important ones (1/n)
Personal Finance 101 – My learning’s about investing
This topic is for everyone, whether you manage your money yourself or through your advisor, it will go a long way in managing your finances.
Do re-tweet & help us educate retail investors (1/n)
Subscribe to our YouTube for some interesting educational content around Personal Finance - https://t.co/jvgNEDWiAZ
And you can also join our Telegram channel for regular updates – https://t.co/Ekz6I8pDGt (2/n)
(1) Lets start with Life Insurance
Term Insurance is the best way to take an insurance cover & probably the only product to buy in life insurance. Make sure u disclose all the necessary information before taking the insurance. Smoking, Alcohol, any pre-existing deceases etc(3/n)
Have atleast 10-15 times of your annual income as insurance cover
But there are variants of term insurance that you should avoid (4/n)
(A) Term plan with return of premium
For a non-smoker born on the 1st Jan 1985 & policy term 39 years (till age 75), the regular premium for a 1-cr term insurance is 22,157 (inclusive of GST) but with returns of premium is 42670 (inclusive of GST). An increase of 20,513 (5/n)
This topic is for everyone, whether you manage your money yourself or through your advisor, it will go a long way in managing your finances.
Do re-tweet & help us educate retail investors (1/n)
Subscribe to our YouTube for some interesting educational content around Personal Finance - https://t.co/jvgNEDWiAZ
And you can also join our Telegram channel for regular updates – https://t.co/Ekz6I8pDGt (2/n)
(1) Lets start with Life Insurance
Term Insurance is the best way to take an insurance cover & probably the only product to buy in life insurance. Make sure u disclose all the necessary information before taking the insurance. Smoking, Alcohol, any pre-existing deceases etc(3/n)
Have atleast 10-15 times of your annual income as insurance cover
But there are variants of term insurance that you should avoid (4/n)
(A) Term plan with return of premium
For a non-smoker born on the 1st Jan 1985 & policy term 39 years (till age 75), the regular premium for a 1-cr term insurance is 22,157 (inclusive of GST) but with returns of premium is 42670 (inclusive of GST). An increase of 20,513 (5/n)
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The content in the articles has been written in a very simple language which will help you learn everything about the sector and/or the company!
Do Retweet and help your fellow tweeples learn!
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https://t.co/tMfB73CHYs
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The content in the articles has been written in a very simple language which will help you learn everything about the sector and/or the company!
Do Retweet and help your fellow tweeples learn!
Let's go 👇
Starting with Financials -
A to Z of Banking, all basics of banking explained -
https://t.co/tMfB73CHYs
Top 5 Banks and their strategies -
https://t.co/aivfUtuw9g
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Mid Sized Bank - Kotak Mahindra Bank
How did they avoid all NPAs from 1999? What makes Uday Kotak's Concalls a goldmine of information on the Banking sector? Everything explained!
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From its origins to how it gives 0% EMI to how it earns money from manufacturers - everything explained!
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1/ Some initial thoughts on personal moats:
Like company moats, your personal moat should be a competitive advantage that is not only durable—it should also compound over time.
Characteristics of a personal moat below:
2/ Like a company moat, you want to build career capital while you sleep.
As Andrew Chen noted:
3/ You don’t want to build a competitive advantage that is fleeting or that will get commoditized
Things that might get commoditized over time (some longer than
4/ Before the arrival of recorded music, what used to be scarce was the actual music itself — required an in-person artist.
After recorded music, the music itself became abundant and what became scarce was curation, distribution, and self space.
5/ Similarly, in careers, what used to be (more) scarce were things like ideas, money, and exclusive relationships.
In the internet economy, what has become scarce are things like specific knowledge, rare & valuable skills, and great reputations.
Like company moats, your personal moat should be a competitive advantage that is not only durable—it should also compound over time.
Characteristics of a personal moat below:
I'm increasingly interested in the idea of "personal moats" in the context of careers.
— Erik Torenberg (@eriktorenberg) November 22, 2018
Moats should be:
- Hard to learn and hard to do (but perhaps easier for you)
- Skills that are rare and valuable
- Legible
- Compounding over time
- Unique to your own talents & interests https://t.co/bB3k1YcH5b
2/ Like a company moat, you want to build career capital while you sleep.
As Andrew Chen noted:
People talk about \u201cpassive income\u201d a lot but not about \u201cpassive social capital\u201d or \u201cpassive networking\u201d or \u201cpassive knowledge gaining\u201d but that\u2019s what you can architect if you have a thing and it grows over time without intensive constant effort to sustain it
— Andrew Chen (@andrewchen) November 22, 2018
3/ You don’t want to build a competitive advantage that is fleeting or that will get commoditized
Things that might get commoditized over time (some longer than
Things that look like moats but likely aren\u2019t or may fade:
— Erik Torenberg (@eriktorenberg) November 22, 2018
- Proprietary networks
- Being something other than one of the best at any tournament style-game
- Many "awards"
- Twitter followers or general reach without "respect"
- Anything that depends on information asymmetry https://t.co/abjxesVIh9
4/ Before the arrival of recorded music, what used to be scarce was the actual music itself — required an in-person artist.
After recorded music, the music itself became abundant and what became scarce was curation, distribution, and self space.
5/ Similarly, in careers, what used to be (more) scarce were things like ideas, money, and exclusive relationships.
In the internet economy, what has become scarce are things like specific knowledge, rare & valuable skills, and great reputations.
