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Over the last year or two, there has been a lot of talk on media channels on interest rates and what they mean for the markets.

And sometimes it is not clear why this should be so.

After all interest rates define the return you get on fixed deposit, bonds and other fixed income instruments. As interest rates go up the returns on these instruments also increase. Of course the price of a bond yielding a fixed coupon will go down as the interest rates in that economy or currency go up. This much appears straightforward.

For example, suppose a government bond pays 4% per annum. That means it pays an annual coupon of Rupees 4 on a face value of Rs 100. For ease of calculation, we are assuming for simplicity sake that this is a perpetual bond that will just keep paying interest.

Now if interest rates go up from 4% to 6% the bond price will need to come down buy one third, from Rs.100 to Rs.66.6, because 4/66.6 = 6%.

This much is intuitively clear to anyone with a school level knowledge of arithmetic.

What is not so intuitively clear is why should this impact shares or equity markets.

Let me try to simplify it a bit. I will be doing a separate blog series on what determinants of the P/E ratio ie the Price-Earnings ratio but at the simplest level it is calculated as the Earnings per share divided by the Stock Price. Which is also the same as Net Income divided by Market Capitalisation.

Let's look at what it really means. 

Now let's play around. What if we invert the P/E where the numerator becomes the denominator and the denominator becomes the numerator.

What does P/E inverted become? It becomes E/P, which is known as earnings yield.

E means earnings or profits, divided by price.

It is trying to capture what you're earning or the rate of return in a crude sense when you invest in the equity markets.

Think of it this way: if you are running a small business where you invest 5 lakh rupees and earn a profit of 75,000 rupees in a year your e by p or earnings yield becomes 75,000 divided by 5 lakhs which is 15%. 

But you could have invested in some debt also and earned, maybe 10%. The higher risk you are taking by starting a business is being compensated by the higher yield which is 15% instead of 10% on debt.

Therefore the acceptable, or expected, return from an equity investment in a business is some percentage over and above the return you can make from lower risk debt, so interest rates are implicit in the calculation of what is an acceptable or desirable PE.

Hence, as interest rates go up, you want to earn more from equity. Plus you want to earn more than what you would get from a fixed deposit if you come to the equity markets.

So if the interest rate on bonds or fixed deposits goes up to 15% you will want to earn more from equity, otherwise you would not want to take the higher risk.

That is why when the interest rates go up, the acceptable or expected returns from equity also goes up.

In equity markets this mean that the E/P that you want, goes up which means the P/E goes down.

Therefore as interest rates go up, the market P/E goes down.

But this effect is not the same for every company.

The reason for that is, if you look at it another way, earnings accounting profits are only an approximation. Ultimately the value of the company is the discounted value of all future cash flows of the company.

When interest rates are low the future cash flows don't lose much value in being discounted back to today.

For example, around 2020 interest rates in most Western Nations were around zero - some were even negative.

When interest rates are Zero, then you don't care whether you earn 100 Dollars today or 100 Dollars five years later. Because that five years out 100 Dollars has the same value.

However, if interest rates go up, that five years out 100 Dollars cash or profit is no longer as valuable.

Hence, when interest rates goes up what happens is...that the effects is more on on so-called Growth Companies -which means compamies which have very low profits  or cashflows today but they have a lot of promise, that they will make much more profits or cashflows in the future.

Think of so called new age companies like Uber and Doordash or Peleton in the US or companies like Zomato, Paytm and Policybazaar in India, which were not profitable when they came out with their IPOs, but are supposed to become profitable in the future - maybe 5 or 10 years later.
In this cases all that you are buying is the promise of future cash flows as no cash flows existed as of the public issue date.

Now, if in the inteim, interest rates go up, those years out of profits and cashflows are valued less and less.

And therefore, as  interest rates go up the value of these companies falls much more than companies which have profits and cashflows today itself.

That is why it is said that value does better than growth when interest rates go up. Because value is supposed to capture companies which have more profits, book value and cash flows today as compared to those who have only the promise of these in the future.

That, my friends, is the story in short of interest rates and equity markets.

From the desk of
Devina Mehra 
If you want any help at all in your wealth creation journey, in managing your Investments, just drop us a line via this link and we will be right by your side as your wealth advisor, super quick!
Or WhatsApp us on +91 88501 69753
Chat soon!
 

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दीपावली के अवसर पर हम सभी ने देवी लक्ष्मी की पूजा की होगी, लेकिन क्या हमें उन्हें वास्तव में वह सम्मान देते हैं जो उन्हें प्राप्त होना चाहिए?

यदि आप अपने स्वयं के धन या निवेश को प्रबंधित करने के तरीके को देखें, तो आप पाएंगे कि अक्सर ऐसा नहीं होता।

जब आपको एक मोबाइल फोन खरीदना होता है तो आप कई वेबसाइट पर जाते हैं, अलग-अलग फीचर्स की तुलना करते हैं, दोस्तों से राय लेते हैं बहुत सोच विचार करते हैं और तब यह निर्णय लेते हैं कि कौन सा फोन खरीदें। दिवाली की खरीदारी के लिए भी दुकानों या वेबसाइट के बारे में कुछ तो मालूम करते ही हैं।

लेकिन जरा सोचिए कि आपने पिछली बार कोई शेयर खरीदने से पहले कितनी छानबीन की थी। आप पाएंगे की अमूमन आप और हम 25,000 या 10,000 रुपयों का सामान खरीदने के पहले ज्यादा समझ बूझ लगाते हैं  बनस्बत  एक लाख या शायद ₹5 लाख के स्टॉक में निवेश करने के पहले।

अक्सर हम स्टॉक खरीदने का निर्णय लेते हैं किसी दोस्त की टिप्स, कोई सुनी सुनाई बात, कोई व्हाट्सएप ग्रुप के फॉरवर्ड या टेलीविजन पर किसी 'विशेषज्ञ' की अधसुनी राय के आधार पर।

निवेश के निर्णय में बहुत कम विचार किया जाता है: हम उस स्टॉक को किस पैरामीटर के आधार पर खरीद रहे हैं, यह हमारे पोर्टफोलियो में कहां फिट बैठता है, हमारा पोर्टफोलियो एकबारगी दिखता ही कैसा है, यह विभिन्न क्षेत्रों या उद्योग वर्गों के बीच कैसे विभाजित होता है - इस तरह के अधिकांश प्रश्नों पर हम सिरे से विचार ही नहीं करते हैं।

अंततः होता यह है कि हम लक्ष्मी मां की पूजा तो करते हैं लेकिन अपने खून पसीने से कमाई हुई धनराशि की कदर नहीं करते हैं। बिना उचित  सोच विचार किए निवेश करते हैं। या यूंँ कहिए, घर आई लक्ष्मी का समुचित आदर नहीं करते हैं।

चाहे आप इसे स्वयं कर रहे हों या आपके पास किसी प्रकार का निवेश सलाहकार हो, आज ही तय करें कि आप अपने पोर्टफोलियो में निवेश और निगरानी के लिए एक उचित प्रणाली का उपयोग करेंगे। बेतरतीब ढंग से और बिना सिस्टम के निवेश नहीं करेंगे।

उदाहरण के लिए,  छोटे निवेशकों के लिए FG-HUM (ह्यूमन + मशीन) स्मॉलकेस एक पोर्टफोलियो बास्केट चुनने का अच्छा अवसर देता है जो आपके लक्ष्यों  के साथ फिट बैठता है। यह एक बहुत ही परिष्कृत आर्टिफिशियल इंटेलिजेंस मॉडल का उपयोग करता है, जिस के साथ होता है मानव विशेषज्ञों का दशकों का अनुभव।

साथ ही अंतरराष्ट्रीय निवेश के अवसर है और कुछ बड़े निवेशकों के लिए हमारा PMS भी।

जानकारी के लिए क्लिक करिए: https://t.co/d57XSjhXCA

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Diwali greetings to all of you and your family! May the year bring happiness, peace and prosperity to all.

This is the time of the year when all of us worship the goddess Lakshmi but think about whether we really show her the respect that is due to her?

Think about the time you bought your mobile phone. You researched online, read articles, compared feature by feature, asked a dozen friends and then made a decision. Even to buy a saree or a shirt, we check around a bit on which shop/site is reliable.

Now think about the way you made your last portfolio decision or bought a stock.

Don't you spend more time and effort researching a 25,000 or even a 10,000 Rupees purchase than you do a 1 lac or maybe, Rs. 5 lacs stock investment?

Very often the latter is done based on some tip from a friend, or even from someone anonymous on a chat group, maybe a half heard 'expert' opinion on a TV channel, buzz about a new IPO or something of the kind.

There is little thought that goes into the typical investment decision: based on what parameters are you buying that stock, where does it fit into your portfolio, what does your portfolio look like in the first place, how is it split between various sectors or asset classes - most such questions are not addressed at all.

Hence, you may not even think about that this is the fourth Bank you are buying and now your portfolio consists of stocks where 80% are in just 2 industries. It is all done on ad hoc basis.

Even less thought goes into monitoring that portfolio or making changes when required.

Once you think about it you will realise that no matter how many lamps you are lighting before the goddess Lakshmi you are not really showing her enough respect.

This Diwali take a pledge to really start respecting her which means respecting your own hard-earned money and investment corpus.

Whether you are doing it yourself or have an investment advisor of some sort, decide today that you are going to use a proper system for investing and monitoring your portfolio. Don't invest haphazardly and without a system.

For example, the Smallcase platform gives a good opportunity to choose a portfolio basket that fits in with your goals, worldview and helps formulate the best portfolio management plan

Our own offering, FG-HUM (Human + Machine), for instance, uses a very sophisticated Artificial Intelligence model, combined with decades of human expertise, to come up with a curated, diversified, Multi-cap, multi-sector list of 25-30 stocks that solve your investment dilemmas in one shot. And the investment process is also super simple which helps in better portfolio management. This could the best of any money saving tips you've come across.

Want to know how to really respect your money and do things systematically?

We are there to help: https://t.co/d57XSjhXCA

Wish you and your portfolio a great Diwali and a great year ahead.

Warm Regards,

From your Friends at First Global

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First, let's understand why you should, at all, consider investing part of your portfolio overseas. Let me tell you a story from history that I lived through, but many of you may not be familiar with - having been too young at that time.

Almost 25 years ago, in 1997-98, every South East Asian Market from Taiwan to Thailand to South Korea to Indonesia fell between 50 to 90% in US Dollar terms in a single year. A phase that went down in history as the Asian Crisis.

The thing to remember is that these were not no-hoper, basket case economies. These were the Asian Tigers. They were inspirational and even India wanted to be an Asian Tiger. Yet, their currency and stock markets collapsed.

More recently, we have seen a similar carnage in Russia, Sri Lanka and to an extent even in Western Europe.

Even when there is no crisis, single stock markets can deliver poor performance for very long. Japan has not reached its 1980s high even after 3 decades. The mighty NASDAQ did not take out its 2000 high till 2015.

Yet, investors all over the world continue to have a disproportionate allocation to their home markets which is both a sub optimal, as well as risky, strategy.

The Indian stock market accounts for approximately 3% of the world's market capitalisation. Why should you have 95% or 100% of your investment portfolio invested only in India, ignoring the rest of the world?

In general, investors should look at diversifying outside home markets as only home market exposure exposes you to SCCARs (Single Country Single Currency Single Asset Risk) which can be a huge blow at times.

Since most of your returns are decided by Asset Allocation, it is imperative to have diversification across geographies and asset classes.

Even if there are no disasters, the risk is real...even in India.

In the mid-80s, when I started working, the US Dollar was Rs.12. Today it is Rs.82+! So, that has been an 85-86% loss in the value of the Indian Rupee over the course of a career.

Earlier, of course, there was no way for an Indian resident investor to get a truly Global exposure. This is no longer the case.

For Indian Investors, there are a few ways to get Global exposure: through the Liberalised Remittance Scheme (LRS) of the RBI as well as Domestic Instruments.

Under this scheme, an Indian resident can invest up to USD 250,000 (about Rs.2 crores) per year per person globally. This is a fairly generous limit.

However, since Indian Investors have historically not been used to investing overseas, there is still considerable confusion and uncertainty about the optimal route to take for Global Investments.

Let us look at some ways to make these Investments and the pros and cons of each:

1.   Mutual Fund offerings of Indian houses where all or part of the investments are made in Global ETFs, funds or stocks. These are domestic instruments and don't even use up your LRS limit. However, these have a few constraints, including an overall limit by the RBI on how much can be invested by the entire Mutual Fund Industry, globally.

The other drawback is that it adds another layer of costs & charges by the Domestic Fund house for no additional benefit, whereas you still continue to pay what the overseas ETF manager or fund house charges.

Also, there is no accountability, as the domestic Asset Management Company (AMC) is just a pass through entity. Consequently, it will not be liable to give any explanations for the performance, or lack thereof, of the fund.

The other constraint which is not a built in one, but simply a result of the way things are done is that most Indian offerings are oriented towards only one or two geographies, usually the US and sometimes the China region. They are not truly Global in nature.

A recent example is that a number of NASDAQ offerings came up in 2021 when the NASDAQ was booming, which have since lost substantial money for the investors.

2.   Under the LRS scheme, the Indian investor can also directly buy both stocks and mutual fund / ETFs abroad with some constraints like no leverage or derivative positions.

These can be used to buy any ETF or funds. These can include those in Equity Markets as well as those in Fixed Income, Commodities etc.  Again, investors looking at these should look beyond only the well-known one or two US indices.

Most of your returns in an investment portfolio come from Asset Allocation and the optimum Asset Allocation does not remain static over a period of time. 

Various countries, geographies, asset classes, sectors etc. go ‘out of favour’ in terms of returns. For example, from 2003 to 2007, US markets were a big underperformer whereas the Emerging Market Index went up over four times - India went up 6 times, Brazil went up 10 times.

Then, from 2010 to 2020, the US was a huge Outperformer whereas Emerging Markets did nothing. 

Therefore, getting locked into one or two ETFs is not a good idea.

3.  The same international brokerage accounts can also be used to buy stocks directly - in at least the Developed Markets. Direct stock purchase access maybe more patchy in Emerging Markets as many brokerage accounts do not provide access to these, although country ETFs are available.

  While it is risky to be locked into certain particular country indexes and ETFs, it is even worse to be locked into certain stocks, especially as the life cycle of businesses is getting shorter and shorter in the Developed World. 

   For context, the NASDAQ did not take out its 2000 high till 2015 and even when it did, the composition was very different! In 2000, Tech majors meant companies like Motorola, Dell, IBM, Cisco etc. whereas now it means a completely different set of stocks. 

  Plus, at various points other asset classes like Commodities, Fixed Income, Precious Metals, Real Estate Investment Trusts (REITs) etc. become more attractive and the Asset Allocation has to be shifted more towards these. In short, what you need is a dynamic and tactical Asset Allocation system.

4.  The learning from all that we have seen about is that an ideal investment portfolio should be diversified across geographies and across asset classes.

  And, even this asset allocation cannot remain static over time. It needs to be managed dynamically and tactically by a Fund Manager or Advisor who really understands Global Markets.

 Normally, access to this type of truly diversified Asset Allocation portfolios is available only to the very wealthy investors, investing over a million dollars each.

However, at First Global we were determined to provide access to this type of investing to smaller Indian investors.

We have managed to structure and offer a truly geographically diversified multi-asset portfolio, called the Global Multi Asset Allocation Portfolio (GMAAP), starting at USD 10,000 which is approximately INR 8 lakh simply as a service to offer this to smaller investors in India. There is also an Equity ONLY variant which is also totally global.

We also have a similar strategy in a FUND format with starts at $100,000.These instruments invest in Developed Markets & Emerging Market Equities, Commodities, Fixed Income of all kinds, Real Estate Investment Trusts etc.

Both of these are truly global, where we invest in anything from Australian mining companies to South African REITs and everything in between. We reallocate and change strategies as the outlook changes because there is always a simultaneous bull market and bear market in the world depending on which asset class and geography you are looking at.

More on that another time.

From the desk of Devina Mehra

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We often speak about our extensive techstack called FG Exotech with a series of subsystems like Turbo™, Glocom™ and Agreement in Motion™ Systems that helps us identify every attractive opportunity in the Global as well as Indian market.

These are a combination of top down and bottom up systems and identify opportunities like the entry into the Metals space in June 2020, Global Marine space in early 2021, Agri and Energy space from Jan 2022 and Exiting China Tech in Feb 2021.

The systems give us an indication to increase exposure to the Indian Capital Goods & Industrial Machinery space, in early October 2021. That's when we started increasing exposure to that space from 8% in October 2021 to 22% currently.

The call worked out beautifully giving us great alpha (ie above market returns) from stocks like CG Power and Industrial Solution, Schaeffler India, Elgi Equipment, SKF India, Cummins etc. to name a few. These gave us returns in the range of 30-300%. Within a span of 10-12 months, some to them went up almost 2-4 times.

Why did our systems like the sector?

Reason One: It was coming out of a long period of sub optimal business conditions as well as below par returns. We always keep a watch for turning points in beaten down sectors.

Capital Goods stocks had a significant run in the 5-year period from 2001 to late 2007, followed by a massive correction by March 2009. Since then, for over a decade, the sector got lost in a secular bear market. Between 2010 and 2020, the sector gave a CAGR of just 2.6% compared to a 9.3% CAGR for the Nifty.

 

 

BSE Capital Goods Index CAGR

Nifty 500 Index CAGR

Sep 2001-Dec 2007

79.0%

42.6%

Jan 2010-Dec-2020

2.6%

9.3%

Jan 2010-Dec 2021

6.1%

10.9%

Hence, after being an underperformer for a very long period, plus with more companies as well as the government entering a strong capex cycle, it was possible that the sector will now enter a period of outperformance. Plus, from a valuation standpoint, the sector valuations were quite inexpensive. More on this below.

The sector enjoyed peak valuations (P/E of 50x and EV/EBIDTA of 35x) by 2007. Thereafter, valuations fell and again rose up to a P/E of 48x and EV/EBIDTA of 21x by 2015. Thereafter, valuations kept falling year after year and started witnessing a uptick only from 2021. Even, the earnings growth which was a negative 1% and 31% in CY19 and CY20, started showing strong numbers  in 2021 and ended CY21 with an earnings growth of 300+%, driving valuations upwards. Our systems were able to catch this up move.

 

Second, this is inherently a cyclical sector with user industries getting into over capacity situations, cutting back on capex and then after a few years increasing spending once again. With the opening up of the economy since late 2020, the capital goods sector started witnessing strong traction due to healthy order inflows across companies, rising execution levels in key projects, the improving liquidity situation, and spending by the central government.

The Third boost was from the government, both directly and indirectly. The Central government introduced the Production Linked Incentive (PLI) that incentiveised domestic manufacturing.

Plus the 'PM Gati Shakti Master Plan' to create comprehensive infrastructure development plan including roads, power, telecom, etc  helped revive the capex cycle, driving further growth in the sector.

A further boost was from global companies making a shift toward a "China plus" strategy to reduce their dependence on that country and India is one of the biggest potential beneficiaries of the shift. This also boosted the capex cycle in certain industries.

Fourth, was the internal work done by the companies in the sector. Most companies in the capital goods space gradually resolved their supply chain and labour issues, improved private corporate balance sheets and improved their capacity utilizations. They were much leaner and once the orders began to flow in, they were in a position to show good profitability.

Lastly,  we saw that Capital Goods was a relatively safe haven compared to other sectors  which faced margin pressures due to a huge increase in prices of raw materials, coal, electricity , oil and supply constraints plus sluggish demand.

How did this recommendation from our systems do?

Since we started increasing exposure to Capital Goods i.e. from Oct 2021 to August 2022, the BSE Capital Goods index is up 20.8%, as compared to the NIFTY 500 index return of just 1.8% and the stocks we have held are up 2-4 times, adding strong alpha to our portfolios.

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Devina Mehra, with no family wealth, made this tiny capital into large, multi-country businesses.

Through Learning. Came the Earning. In the markets, there is no lasting wealth without knowledge which usually comes from reading. Of course, now videos, podcasts etc. are also available.

Here are some books that you may enjoy, whether you are just starting on your investment journey or are already further along the way.

I have split them into 5 categories:

I. Books to understand the way our own mind works

(Including  Our Own Biases, Blind Spots and Fallacies in Thinking)

Before you can conquer the world, you must conquer your own mind and more importantly, understand it!

As a starting point, I would recommend these few books starting with 'Thinking Fast and Slow' by the Nobel laureate Daniel Kahneman.

It is a comprehensive look at how your own thinking can mislead you. How the automatic, fast, intuitive, 'natural' thinking that you rely on for most things in life - the one that feels right may be actually completely wrong in objective terms; the many biases like Endowment Bias (when you value something more highly, simply because you own it), Recency Bias (when you think what is the norm now was always the case, or what is hitting the headlines is the most important thing in the world), Loss Aversion (which makes it difficult for you to book losses because it causes too much pain), Anchoring Bias and many more - all of which can derail not just your regular life but also your investing and trading career.

The caveat of course is that just because you understand what investing biases are, does not mean that you will be able to eliminate them from your thinking.

A second important book by the same author is 'Noise' which goes beyond biases into how random variations between supposedly equally skilled people (like judges, insurance valuers etc) can cause big variations in outcomes.

'The Invisible Gorilla: And Other Ways Our Intuitions Deceive Us' by Christopher Chabris & Daniel, talks about the illusions of our mind: About how our minds are finite resources and hence, from our attention to our memories we perform far below than what we think we do.

It deals with some of the reasons as to why human beings make bad witnesses to how confidence is no proxy for competence. A very useful book to make you aware of several illusions you carry as you go about the world.

Even if elimination of these illusions is not possible, the awareness that these exist, changes the lens through which you see the world.

'Misbehaving: The Makings of Behavioral Economics' by Richard Thaler also illustrates with many examples how we human beings are not as rational as what we think we are and how changes which should not make a difference to a rational person do make a difference in the real world.

‘The Halo Effect’ by Phil Rosenzweig talks of several characteristics that we attribute to successful companies and corporate leaders (great strategy, customer focus, outstanding human resource practices etc.) are all mostly due to the halo that is cast by the current performance of these companies. As the performance changes, the same characteristics that appeared like 'secrets to the success' appear to become liabilities.

Two other recent book recommendations on thinking frameworks that added totally new dimensions to me were: One, ‘Anthro-Vision: How Anthropology Can Explain Business and Life’ by Gillian Tett. Mind you, anthropologists can study not just remote tribes but also groups like copier salespeople, computer buyers in India or stock traders. And two, ‘Everything Is Obvious: Once You Know the Answer’ by Duncan J. Watts about how so-called common sense can totally mislead us.

II. The Nitty-Gritties of Investing

This is the distinctly unsexy stuff but if you want to make a serious effort in investing or trading, you need to have the building blocks.

If you have already done a structured course in finance like CFA or MBA or MSc. Finance you may be familiar with much of this, otherwise it is worthwhile to spend your time and effort on some books like ‘Damodaran on Valuation’ by Aswath Damodaran and ‘Valuation, Measuring and Managing the Value of Companies’ by Tom Copeland to give you an idea on how to go about analysing the financials of a company and making an attempt to value it.

If you are a beginner in this field, basic books on accounting and finance may also be required, but you definitely need to have this toolbox in order to make sense of your investments.

III. Stories Of Great Investors And Traders

These have to be read from the point of view of not getting a final how-to prescription, but understanding the many different approaches that are there to heaven.

Ideally, you should read about many different strategies and tactics before you can evolve your own strategy. Do this widely: from reading ‘Berkshire Hathaway Letters to Shareholders’ to ‘The Man Who Solved the Market: How Jim Simons Launched the Quant Revolution’ by Gregory Zuckerman, which is about Jim Simons and the totally different approach of taking millions of bets with a small edge and a lot of computing power.

Then, there are books like ‘Market Wizards’, ‘The New Market Wizards’, ‘The New Money Masters’ that have interviews of (or analysis of the strategies of) many well-known traders and investors.

To understand how you should think about money, investing etc, 'The Psychology of Money' by Morgan Housel also provides some food for thought. Especially recommended for young people.

IV. Autobiographies and Biographies of Businesspeople and of Businesses

There is virtually an ocean of these. Since investing is mostly about investing in securities of corporations, it is important to understand how businesses are built and run.

There is no formula to this, but you will often find that the one-line story or impression you have of a business is very different from how it was actually built up step by step.

For example, when reading 'The Everything Store: Jeff Bezos and the Age of Amazon' by Brad Stone, you realise that while the whole impression is of how a  great leader Jeff Bezos was and a linear growth rate for Amazon, the reality was very different. What actually happened was this: At every step of the way, Amazon took dozens of bets, lost a great deal of money in many of them and maybe one or two of them at every stage paid off.

Similarly, Nike appears like a great success story from the word GO but when you read 'Shoe Dog: A Memoir by the Creator of Nike' by Phil Knight, you realise that this was a company that was started in the sixties and took a very long time to even come to the take off stage and also contrary to the general impression, it was not a very marketing-oriented company in the beginning and for a long time thereafter.

There are some very interesting lives that businesspeople have led and the stories can make for a fun- filled ride. A couple that we can recommend are Richard Branson's 'Losing My Virginity', which proceeds at breakneck speed and Subhash Chandra's 'The Z Factor', which is as candid an account as you can get of what it means to run a business in India.

V. Books on Technicals / Derivatives / Trading Techniques

This category may not be relevant for everyone but if you do plan to trade rather than invest or trade derivatives, please ensure that you read multiple books about your chosen methods/techniques.

Indeed, textbooks are probably what you should start with to understand the instruments properly. Else, don't venture here at all.

From the desk of Devina Mehra

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