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If you find megatrends early, it could be highly rewarding...

If you want to refresh powerful concepts of Chemical Sector...

This is must watch for you...

One of the most in-depth analysis on the sector you will ever see..!!

#investing

@Sanjay__Bakshi @iancassel Thanks Sir for amazing insights as always.

To fight some of these "bad demons" I keep doing experiments like averaging up..

Also, during feeling of high PE or market overvaluation, I try not to take profit, but trail exit and give room of 20-35% drawdown to excellent businesses

@iancassel Also, I am experimenting few indicators which will help me re-enter known great business again (even if I exited at lower price) and help remove price anchoring in objective way..

Let's see how it pans out..

But yes... ultimately anyhow we need to conquer these demons 😀

✈️🚀

What is that 1 company that you see awesome growth for atleast next 5 years?

Comment below...

#investing

Biggest mistake many investors make in highly cyclical sectors like steel, sugar, metals etc.

is that...during upcycle they assume earnings to be structural and get swayed away by optically low valuation thinking it as value buy..

Result... averaging down during fall n disaster

Mega thread on how the India’s Largest Telecom Operator – Reliance Jio (~35% market share) came into existence & became India’s Largest Mobile Broadband in less than 2 years.

Crazy story...no less than revolution..

Please retweet and comment below if you got blown away..

(1/n)

1 >> It was year 2011...year of spark

"The idea of Jio was first seeded by Ambani’s daughter, Isha, in 2011. She was a student at Yale (in the US) and was home for holidays. She wanted to submit some coursework and she said, 'Dad, the internet in our house sucks'," he recalled.

2) There was opportunity...

What was that?

That big thing...that will change India forever...for good..

Ambani said - Akash, at that time, stated that in the old world, telecom was the voice and people made money on calls but in the new world everything is DIGITAL...!!

3) That was it - DIGITAL

One simple but powerful idea..high speed internet is future

After the conversation, he researched more about it & found out that India was suffering from poor connectivity of data & prices were high which was not affordable to majority of Indians.

4) But it was not easy...

Dream was BIG...but it was game-changer...

After years of planning & research, Jio was finally launched on 5th September, 2016.

There was lot of competition...but Winning is their DNA..

Share Market is only place where except fall in markets n euphoria,

Majority of the times

Fall in price ≠ CHEAP / DISCOUNT

And rise in price ≠ EXPENSIVE

Business performance is ignored

Many keep averaging down n don't add at higher price when business improves

#investing

For almost seven years, I have tracked the hotels space very closely.

While everyone wants to jump on the 'unlock trade' bandwagon, I do not feel it's a great idea because the business model in itself is a little flawed.

Here's a thread 👇 (1/n)

Let's first start with the industry overview.
The whole industry works on one and one thing only. Revenues. (Let's call this A)

Are you capable of charging higher Revenues from your customers on a regular basis?

Are you able to maintain your Revenues if not increase them? (2/n)

Why is this relevant?
Well, think of a regular business selling goods / services.
Typically, when you're not able to sell something, you keep it for the next day or hold it in your 'inventory'.
Typically you have a certain level of demand estimation before you manufacture(3/n)

Whether you manufacture a product or sell a service, you do a certain degree of demand planning.

In the context of hotels, this would be based on the location, the demand of tourist arrivals and accordingly the number of keys (hotel rooms).

(4/n)

The only catch here is the fact that you only have a 24 hour window to sell a day's inventory.

Taj Mahal Palace in Mumbai only has a 24 hour window on a daily basis to sell 560 room nights.

Once the day gets expired, the inventory is gone. (5/n)

(Thread) With Kotak launching its International REIT Fund of Fund NFO, it is worth revisiting our old thread on Real Estate Investment Trust (#REIT). The Idea is to educate readers on REIT & share our view on the Kotak #NFO

Do ‘re-tweet’ & help us educate more investors (1/n)

What’s a REIT?

Lets say I am a RE developer, K Raheja. I like a land in Mumbai & Hyderabad 4 some commercial development. I decide to buy it. Where will I get the monies 2 buy & construct it?
1. Self
2. Bank, NBFC, MF - Debt
3. Partner – someone else investing as Equity (2/n)

So I invest some monies, got some 4m banks & MF’s & I also got Blackrock to invest 2 buy the land & make the business park called 'Mindspace'. I constructed around 23-mn sq ft with multiple building & I started leasing them out to companies who wanted rented office premises (3/n)

There comes a point where I needed more monies to build new building, pay off the loans etc., where do I get the monies? So I decide to do an #IPO. Not of the entire company K Raheja but only this project called Mindspace. So I formed a trust or corporation (4/n)

I commit to payout 90% of my rent income to the shareholders proportionately as dividends & I will use this IPO money to invest a minimum 80% in completed real estate, which is generating rent & will use 20% in constructing new Real Estate or lend to some other developer (5/n)

A basic premier on the banking sector, demystifying commonly used terms,
CASA
Wholesale Banking
Net Interest Income (NII)
Cost of Liability
Advances Growth
Gross v/s Net NPA
Provisions
SLR/CRR
Capital Adequacy Ratio
Net Interest Margin (NIM)

Do hit the 're-tweet' (1/n)

Banking, as a business is simple to understand, you borrow money (liability for the bank as the bank needs to pay back) and lend (asset for the bank as the bank is expected to receive it bank), the difference between the borrowings & lending is banks income (2/n)

Where all can they borrow from?

(a) Savings Account (SA)
(b) Current Account (CA)
(c) Fixed Deposit (FD)
(d) Recurring Deposit (RD)
(e) Certificate of Deposits (CD)
(f) Bonds etc. (3/n)

Whom do they lend?
(a) Retail - Housing loan, auto loan, personal loan etc.
(b) Wholesale (Institutional Lending) – Commercial Papers (CP) & other Corporate Loans

P.S. – “HDFC Bank is now increasing focus on wholesale lending”, hope you now understand what that means (4/n)

How does the bank profit?

So lets say the average borrowing cost of the bank (also know as the cost of liabilities) is 4.54% & average lending cost is 8.54%, the difference 8.54% - 4.54% = 4% is called the Net Interest Income (NII). HDFC Banks Cost of Liability is 4.54% (5/n)

Shuchi Nahar's Weekend Blog! : Ethanol - Demand, Market Size, Opportunities & New Government Policies https://t.co/ehAP1CNsiM
#ethanol #fermentation #chemical