Our Memos
April 25, 2023 2023-12-11 12:45Our Memos
Our Memos
Microfinance Mysteries
Letter No. 140 Shares of microfinance companies have plunged 50-75% from this year’s highs, raising alarm bells. Why are these …
Information vs. Insight
Letter No. 139 When does information remain mere information, and when does it transcend into genuine insight? In today’s article, …
Goliaths and Grassroots
Letter No. 138 In the U.S., seven tech giants drive nearly half of market growth, while in India, small-cap stocks …
Big Bold Numbers – No Big Deal
Letter No. 137 If this chart of U.S. banks’ investment losses seems alarming, you’re not alone. While losses have surpassed …
Value Vacuum
Letter No. 136 The valuation of Chinese companies that adapted Western business models has surpassed $1 trillion, enabled by an …
Recalibrating rates
Letter No. 135 As the RBI MPC prepares to announce its rate decision today, we revisit the Repo-FFTR differential, which …
Inside Intel’s Inertia
Letter No. 134 Intel rose to dominate the chip market in the late 1970s and solidified its position in the …
Steel storms: Wild cyclical whiplashes
Letter No. 133 European steelmakers are pushing the EU to control steel imports that have disrupted markets despite trade barriers. …
China’s challenge: avoiding Japan’s Generational Gamble
Letter No. 132 China is taking decisive steps to avoid Japan’s “lost decade,” introducing measures such as rate cuts, liquidity …
Fed-friendly feeds: Subtle economic influence of social media
Letter No. 131 Could social media be the secret force helping the Fed manage inflation and steer the economy …
Doing Nothing
Letter No. 130 Often, the gap between what is said and what is understood can be substantial. Hippocrates’ dictum, …
Ten billion dollar lesson
Letter no. 129 Ever wondered how well we truly grasp the companies we invest in? In today’s ET article, we …
Habit loop
Letter no. 128 In today’s moneycontrol article, we discuss the Habit Loop in equity investing, drawing parallels with the success …
Small Cap Cycles
Letter no. 127 Starting Samvat 2080, we’ve shared compelling data on the brilliance and potential pitfalls of small-cap cycles. Retail …
Privileging the hypothesis
Letter no. 126 A real-time criminal investigation is no fun (most leads go nowhere), whereas, with hindsight bias, it …
Credit Cards
Letter no. 125 Valuation of credit card businesses implies that the market believes that (a) current return ratios are …
Junk bonds
Letter no. 124 While Indian equities are celebrating the last of Fed rate hikes, the long-forgotten High Yield (junk) …
Network effects
Letter no. 123 In economics, the network effect refers to the phenomenon where the value of the product or …
Power sector ailments, and the new Electricity Act
Letter #122 Strong power demand (higher than GDP growth in 2 of the past 3 years) and possible enactment of …
Crude, forex, rates and equity markets
Letter no # 121 Crude oil is down 12% (1m) and 33% since Jun-22. India imports 87% of its …
