Letter # 81

Today, we discuss two eras – one, where the Metals Index zoomed 22 times, and another where valuations of consumer companies expanded materially.

I submit that your evaluation of the permanence of the current situation (commodity prices compressing earnings of consumption businesses, and higher interest rates deflating their multiples), depends disproportionately on the era that influenced your mindshare/portfolio.

I present a hypothesis, you tell me if you agree. Here: investment strategies: Consumption vs commodities – where is your bias? – The Economic Times (indiatimes.com)

Disclaimers:
Information in this letter is not intended to be, nor should it be construed as investment, tax or legal advice, or an offer to sell, or a solicitation of any offer to make investments with Buoyant Capital. Prospective investors should rely solely on the Disclosure Document filed with SEBI. Any description involving investment examples, statistical analysis or investment strategies are provided for illustration purposes only – and will not apply in all situations and may be changed at the discretion of the principal officer. Certain information has been provided and/or based on third-party sources and although believed to be reliable, has not been independently verified; the investment managers make no express warranty as to its completeness or accuracy, nor can it accept responsibility for errors appearing herein.