Microsoft and Nokia Partnership – Creative Destruction?

Have you watched Seinfeld – a hit American sitcom of 90s? If not, then you would not understand this analogy (my apologies). If yes, then Microsoft and Nokia partnership is like, Kramer and Newman putting their heads together to come up with competitive solution.

Does combining two failed mobile strategy equal to one winning strategy? Nokrosoft or Microkia? Managements at Nokia and Microsoft seems to think it is. Both are desperate to make it successful! And in the process following age old thesis. Nokia bought Symbian – it did not work. Nokia partnered with Intel for MeeGo – don’t know what’s happening! What makes management or board of director think that partnership with Microsoft will work?

Nokia does not seem to have a clue about what smart phone means. Don’t get me wrong, Nokia’s smart phone hardware is best-in-class on technological front. It beats iPhone or Blackberry hands down.  But, Nokia still thinks smart phone as just a piece of hardware. It does not seem to realize that smart phone is an ecosystem. Continue reading rest of this article…

Learning Points for a Newbie Investor

The overall interest in investing in stock market is back with full swing. Almost everybody is talking about bonds, IPOs, real estate as if they have been invented recently. Having said that, I love the passion behind it when they talk about it. When folks talk with passion and fire in their bellies, a newbie coming right of the college thinks, wow! that’s the way to go. Recently, a distant family acquaintance was asking me about my opinion about recent surge in IPOs, bonds, and stock market rise. This kid will be graduating next summer (note: next summer, i.e. 2011) from an engineering school and has already got a decent job through campus recruitment. The salary cash flow has not started, and he is already planning to “get-in the market”. He was “researching” what are different methods to make successful “bets” in the market. Continue reading rest of this article…

Overvaluation in Heated Market – In What Context?

I have mentioned of this blog, keep your investment ideas or processes or choices very simple. Remain focused on your objectives. You may keep dissecting into multiple styles and methods. All said and done, all it will do is add a little panache to your chit chat or it may make you look good for few hours. It is my view that style and panacea does not give sustainable results. In one of my earlier post, I mentioned holding companies can be good long term investments. Only question remains is “how do you define a holding company”. If you constraint yourself with definitions in financial literature, then it is likely you will miss the essence of a holding company.

To me, the essence of holding company is like a parent company. A parent who are trying to raise their kids, i.e. new businesses or future companies, in a hope that all of them will be able to sustainable themselves in future. Parents work hard take risk, and kids… you know what I am trying to say, right? Continue reading rest of this article…

Chasing and Paying for Future Expectations – Fallacy or Conundrum ?

NIFTY and SENSEX have been scaling heights in recent months – that is true only if you look back last 6 months, or  12 months, or 24 months.  But when you look back 2 years or 3 years, one would say, it is not a correct statement. In this context, the correct statement would be to say NIFTY and SENSEX are at same levels. You see how putting context or changing data set changes observations and conclusions. The point being, as an investor you have to learn how to “make an objective decision”. You have to learn how to “avoid making subjective decisions”. The current state of equity markets and economy provides a very good example of how to we make subjective decisions.

In last month or so, I have had an opportunity to interact with few folks on email. Many of these folks very interested to know whether it is time to sell any stocks in my portfolio e.g. ONGC, Reliance Capital, HDFC Bank, ABB, etc. Many of them wanted to check if it is time to book some profits. And few folks made a comment that Reliance Capital, NTPC, and ABCIL are not fundamentally strong for buy and hold portfolio. Continue reading rest of this article…

Free Giveaway: MPROFIT Portfolio Management Solution

Few months back I wrote, post about MPROFIT, a product for personalized portfolio management which is desktop based. In simple terms, this is solution for retail investors to manage/track their transactions across many different types of asset class. It simplifies many of the mundane tasks of portfolio tracking. Some of the highlights are:

  • Manage an unlimited number of individual and group portfolios:  This is good for all do-it-yourself investors. Almost all of us tend to manage different types of assets/buckets/type of portfolio.
  • Manage assets like Stocks, MFs, ETFs, ULIPs, Insurance Policies, Private Equity, FDs, Bonds, PPF, Gold, Silver, Property, Art and many more…
  • Online update of BSE stock prices, Mutual Fund NAVs and ETFs – I like this one
  • Track income received from investments – I love this one
  • Annualised Returns (XIRR) report – My favorite feature because I believe this has much more relevance in personal investing. CAGRs are nothing but mathematical jugglery.
  • Online update for newly listed stocks, mutual funds, ETFs and company name changes
  • All your financial data is saved locally on your computer – My preferred choice, I like my personal financial stuff in my own computer, especially in Indian context.

In addition, I like that team at MPROFIT listens to its customers. It keeps adding features that customers are looking for and makes more sense to individuals like us. The most recent update (v5.0) has added capability with different methods of “data importing”. Different ways to import data are: Continue reading rest of this article…

Aegis Logistics: Reviewing Issue of Bonus Shares

Recently, Aegis Logistics announced the issue of bonus shares to existing shareholders. It will issue two additional shares for every three existing shares. These so called bonus shares will be paid from reserves it has accumulated over a period of time. Before you read this post, I suggest you read my earlier post about what really is a Bonus Shares.

Aegis has accumulated a reserves of Rs 167 crore in last few years against equity capital of only Rs 18.77 crore. These reserves are nothing but accumulated profits. The company will issue additional 12.5 million shares and increase capitalization by additional Rs. 12.54 crore. The new capital base for Aegis is likely to be Rs 31.31 crore [18.77 + 12.54]. In this announcement, there is no indication or even a hint on why the company decided to issue bonus shares. It is up to financial media and investors to figure out. Continue reading rest of this article…

Is Exacting a Buy Price Important for Long Term Investing?

At regular time intervals, I like to discuss selective questions from readers of this blog. Many times, I discuss randomly with no particular theme. It is usually based on either intriguing questions or inquisitive questions or just that I like the question. Now that markets have zoomed higher relative to last year, most of these questions have slowly drifted towards buying price. I give priority to respond to all questions that come from regular readers of my blog. I make sure I give them my best response. Others, I may or may not, depending upon if I have time to get to them or whether they are good questions.

Today, I am reproducing below three emails that follow the theme of “what is the buy price”. Continue reading rest of this article…