“Why I Am Leaving Goldman Sachs”….Greg Smith,Executive Director and Head of Equity Derivatives Business in Europe,Middle East and Africa

Wall Street or Dalal Street…This egrerious culture and mindset of making money…anyhow….is the common factor 

Goldman Sachs always remains in the news ~ and this time ,like again and again in recent years, for the wrong reasons

“Why I Am Leaving Goldman Sachs”….Greg Smith,Executive Director and Head of Equity Derivatives Business in Europe,Middle East and Africa

On March 14,2012,New York Times carried this oped by Greg Smith announcing his resignation….impactful way of  communicating your resignation…Market Cap of Goldman Sachs dropped over US $ 2 Billion post this oped  

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Don’t believe everything you read or hear !….Even legendary Investment Icons seem to deliberately preach one thing and practice quite another !

It’s not some startling truth that I’m revealing to you…..but deliberate misguidance has been a major weapon in the armoury of Investment Icons….I daresay when they play ‘Scale’ they will make monies only when you lose !….in that they influence and guide you to take contrary positions to what they actually do !…It’s a common occurrence in India Too…so when you Hear the experts on the stock channels,do play devils advocate and be skeptic…it could save you a lot of Money !

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Warren E Buffett warns of the ‘Greenback Effect’

Warren E Buffett,while warning of consequences of the ‘Greenback Effect’,  is bravely being Optimistic and Patriotic ,like every true blue blooded US Citizen should be !

Says Buffett, ” The United States remains by far the most prosperous country on earth,and it’s debt-carrying capacity will grow in the future just as it has in the past”

Check out Buffett’s Op-Ed Column in yesterday’s edition of New York Times

Buffett is happy that Obama and his Men showed the much needed Wisdom,Courage and Decisiveness required to address the US Financial Crisis…He urges them to continue this Momentum and make some hard decisions

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Sensex Beating Stock Select Portfolio Performance in under Three months

From our Stock Watch of over 300 Scrips these 16 are our Stock Select releases or re-releases on May 4,2009 for as Portfolio Ideas…These are based on Fundamentals and the idea of putting them on this Blog is to assert that even if you were anti-equity and ignored the March 2009 Lows and Sensex of 8000,you could yet have entered beginning May 2009 at Sensex levels of 11500 and made some good returns

No

Company

Opening Value

May 4,2009

in Rs

Current Price

July 21,2009

in Rs

Gain / Loss

in Rs

Gain / Loss

in %

1

Aftek Ltd

9.22

15.35

6.13

66.49

2

Ahmedabad Steelcraft Ltd

15.35

14.17

-1.18

-7.69

3

Allahabad Bank

52.50

84.95

32.45

61.81

4

Bharat Heavy Electricals ..

1651.75

2220.35

568.60

34.42

5

Dena Bank

37.10

52.50

15.40

41.51

6

Grasim Industries Ltd

1778.40

2772.00

993.60

55.87

7

GVK Power & Infrastructur..

38.50

43.15

4.65

12.08

8

IFCI Ltd

25.15

50.50

25.35

100.80

9

Infrastructure Developmen..

76.45

140.60

64.15

83.91

10

Jaiprakash Associates Ltd

138.80

222.25

83.45

60.12

11

Lanco Infratech Ltd

334.05

381.15

47.10

14.10

12

Larsen & Toubro Ltd

879.55

1456.70

577.15

65.62

13

NIIT Ltd

32.00

60.65

28.65

89.53

14

Reliance Industries Ltd

1802.70

2029.60

226.90

12.59

15

S.Kumars Nationwide Ltd

25.15

39.30

14.15

56.26

16

Shree Rama Multi-Tech Ltd

3.79

5.14

1.35

35.62

 Some Observations and Comments

  • In less than three months,the performance of most have been very good…Nine of the Sixteen have surged over 50%…The seven  that have not ,have also seen a surge from March 2009 lows and their northwards movements have decelerated from May
  • GVK and Lanco were recommended on May 21,2009 and NIIT on May 19,2009…all the others were May 4,2009…Opening Prices are as on the date of Reco  
  •  It do not include Sesa Goa,which has been our front runner for a long time now.It currently trades at Rs 230+ ,up near 300 % from March 2009 Low of Rs 60…Last year we had again recommended it at cum bonus and split price levels of over Rs 3000,translating to ex split and ex bonus price level range of  Rs 150 to Rs 165…we reiterated the recommendation several times at every significant decline 
  • It also does not include Firstsource Solutions recommended at Rs 9 and then at Rs 14 in Feb 2009…It now is Rs 22,after seeing a high of Rs 30 recently
  • It does not include Punj Loyd too as this was pursued vigorously in March 2009 at levels close to Rs 100…It’s doubled since them
  • IFCI has doubled and IDFC and NIIT have been near doublers
  • Even the Four Core Scrips,Grasim,BHEL,Larsen & Toubro and Reliance Industries,which have a high Percentage of Portfolio Weightage have performed very well….Of these BHEL,Larsen and Reliance have been re-recommended several times in the past two years…All have been doublers from early March 2009 
  • Only one scrip,Ahmedabad Steelcraft has yet to perform…It had gone upto Rs 20 though a while ago  and has seen a high of Rs 27 last year 

Don’t ask me why I have recommended these or could you yet enter them at these current levels if they have not reached target prices ! My Clients would kill me if I blog free what they pay me for !..But you could try and read between the lines and research these yourselves ! I did cover some of them in my Workshops

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How to Misuse Warren Buffett !…learn from the Chinese !

Would you believe this ! 

A 37 year old Chinese businessman,Zhao Danyang paid a record US $ 2.1 Million to win an eBay charity auction last year to lunch with legendary Investor,Warren E Buffett at a steakhouse in New York City

Just a day before the lunch on June 24,2009,Zhao Danyang played the Media by telling them he was going to recommend a Chinese Retailer,WuMart to Warren Buffett….Share Price of WuMart began moving up smartly and by the time Danyang returned to China,the price had shot up 25% and Danyang’s holding in it was up by more than US $ 16 Miilion…so he made a cool,though notional, US $ 14 Million net of his lunch 

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USSR broke up physically in 1991…USA is breaking up economically now

It’s Uncanny really !

Two super Powers,USSR and USA being brought to their knees….the former suffering,both, physical and economic disintegration and the latter in the midst of it’s worst economic crisis…self inflicted,I daresay.

Breaking up of USSR in 1991

Vladimir Lenin founded the Union of Soviet Socialist Republics or USSR for short in 1918.It was born to die ! It collapsed into the Commonwealth of Independent States in 1991…The Soviet Communist Regime Lifespan lasted less than 75 years and died in the same Twentieth Century…The breakup was aggravated,provoked and prompted by the fast plunging economy and several area disputes between many republics that were leading to armed conflicts

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