2018 was an interesting year. While headline Indian indexes held steady, the broader set of Indian equities suffered a bear market with average stock down nearly 40 to 50%. In this article, we look at warning signs that were present leading up to 2018. Further, via the performance of mid and...

Digital disruption is a potent force. Advances in mobile technology and increasing use of social media have quickened the pace of customer adoption, giving rise to the age of digital disruption. It is important to note though that digital disruption is not a net negative force. For every...

Mission critical moats are one of the strongest forms of moats that we come across and also one of the least understood. There are four primary attributes to such moats, namely, product complexity, importance of reputation, low cost in relation to end product's total cost of production, and...

While the earnings recovery has yet to realize itself, equity markets in India have continued to move up. As indices have moved up while earnings have largely failed to keep pace, valuations, to the extent that one bases them on the current earnings power of the business, have increasingly...

As equity markets have continued to move up and the current bull market has entered its ninth year, market participants have voiced concerns over elevated valuation levels. Several market participants including Hussman and GMO have voiced concerns that equity markets are currently priced to...

An investor, as Warren Buffett, said should think like a part-owner when investing in common stocks. As a part-owner, the investor should be concerned about the competitive positioning of the business he/she is invested in. A business that is relatively insulated from competitive actions, will...

The authors discuss entry and exit barriers and their interaction as basic building blocks of a decision making process for evaluating competitive advantage of a business. While the concept of entry barriers is much discussed in the context of high quality businesses, the authors posit that exit...

The low-yield environment manufactured by central banks has encouraged and precipitated yield-seeking speculation. Investors and speculators alike have taken up a near-religious conviction in the demi-god status of central bankers. Will these central bankers continue to enjoy their god like...

Over the last few years, quantitative investing and trading systems have become increasingly popular as investors, disappointed by the performance of active investment managers, have looked for alternatives. However, the authors suggest that caution is in order as most quantitative systems are...

Bounded Rationality refers to the idea that our rationality is limited by the information we have, the cognitive limitations of our minds and the finite amount of time we have to make a decision. However, investment professionals seem to disregard the bounded rationality of our minds and tend to...