16 Oct 2021
Posted by: Rajiv in: Finance & Investing
Price of 1 share of ITC is Rs 257 (as of 14/10/2021)
The share represents part ownership in the business (not a piece of paper or line in the demat account)
In FY2019, the share generated Rs 7.60 in cash
In FY2020, the share generated Rs 9.90 in cash
In FY2021, the share generated Rs 8.70 in cash
All the cash generated belongs to the owner of the share. It is paid out as dividend or retained in the company. Difference is:
In FY2019, the share generated Rs 7.60 cash. 5.75 was paid out as dividend & 1.85 was retained by ITC. (7.60 – 5.75 = 1.85)
In FY2020, the share generated Rs 9.90 cash. 10.15 was paid out as dividend & 0 was retained.
In FY2021, the share generated Rs 8.70 cash. 10.75 was paid out as dividend & 0 was retained.
(In FY20 & FY21, dividend is more than cash generated. Where did the excess come from? It came from past retained earnings.)
In the 1980 letter, Warren Buffet explains “the value of those retained earnings is determined by the use to which they are put and the subsequent level of earnings produced by that usage”. Later in the 1990 letter, he calls it “forgotten-but-not-gone” earnings.
Majority in the markets are not happy with ITC’s use of the retained earnings. The perception is forgotten-and-gone, up in the smoke of a cigarette! Hence the stock price has under performed in the past 5 years.
What about the minority in the markets? They have, in Tom Russo’s words, the capacity to suffer. A necessity to win in auction-driven markets.
Disclosure: Invested since pre-Covid times.
15 Oct 2021
Posted by: Rajiv in: Finance & Investing, Opinions & Thoughts
Ram: Markets are at an all time high… so many stocks doing superb! Wish my portfolio was better
Shyam: What do you exactly mean by “markets are all time high”?
R: Look at the Nifty & Sensex. Nifty is up 26% in the past 6 months, 31% YTD. Sensex is up 26% in the last 6 months, 28% YTD. Just yesterday, it was up 1%!
S: So by “markets”, you mean the indices – Nifty & Sensex. Isn’t that good? We are all benefiting
R: Not really or at least I don’t feel that way. My portfolio is not.
S: ok, let’s draw an analogy. India is playing well and expected to win the world cup. Which of the 3 bets will you make?
If you bet on A, then you are being a contrarian. You may lose the bet this world cup but could be the winner in the next. (this doesn’t make sense in cricket and most things in life but in investing it does. This is one reason investing is simple but not easy. It “doesn’t make sense” to a centuries-evolved human brain)
If you bet on B, it’s your portfolio versus the index. (large majority of investors including fund managers struggle to win over the index consistently)
If C, betting on India as a team means betting on the Nifty or Sensex. If “markets” go up, you benefit. If “markets: go down, you lose. There is no dichotomy of markets (aka indices) v/s my portfolio. index = portfolio.
R: So, which bet has historically worked the most in investing?
S: There are no right or wrong bets. One can bet on all 3 options, equally or varying weights. World cup ends and a winner emerges. Markets are perpetual. Hence the winner is different in 1 day, 3 months, 1 year, 5 years, 10 years, 20 years.
The question is what is your time frame? T20 or one-day or test?
17 Jan 2021
Posted by: Rajiv in: Opinions & Thoughts
Last week I had the opportunity to share my thoughts and experience with about 70 students from University of Mysore. The theme was life in the Indian IT Industry in 2021 & beyond – emerging trends in the industry & how to stay competitive as a professional.
I enjoyed the journey through the memory lane to distill the highlights. Here is a short summary:
window.fbAsyncInit = function() {
FB.init({appId: "117335488286170", status: true, cookie: true,
xfbml: true});
};
(function() {
var e = document.createElement("script"); e.async = true;
e.src = document.location.protocol +
"//connect.facebook.net/en_US/all.js";
document.getElementById("fb-root").appendChild(e);
}());
I am fascinated by the shipping industry. 90% of world logistics happens through maritime. 100s of seafarers are held hostage at any given time and hardly any of us care! The TED talk I have watched the most times is Inside the secret shipping industry by Rose George. In a connected world, only 10% of freight ships have internet available for its crew. I subscribed to the Shipping Podcast by Lena Gothberg a couple of years back & happened to listen the interview of Reshma Nilofer last week. She is a maritime pilot (India’s first woman) at Kolkata Port (Syama Prasad Mookerjee Port Trust) & recipient of the Nari Shakti Puraskar in 2018 from the Indian president.
1 insight:
2 experiences:
3 ideas:
Link: https://shippingpodcast.com/154-reshma-nilofer-maritime-pilot-kolkata-port-trust-india/
window.fbAsyncInit = function() {
FB.init({appId: "117335488286170", status: true, cookie: true,
xfbml: true});
};
(function() {
var e = document.createElement("script"); e.async = true;
e.src = document.location.protocol +
"//connect.facebook.net/en_US/all.js";
document.getElementById("fb-root").appendChild(e);
}());
Micheal Saylor, CEO of Microstrategy, came up in my radar when I was developing deeper interest in bitcoin (reading this & listening to this). In Aug 2020, Saylor invested $250 million in bitcoins using Microstrategy’s cash in the balance sheet. An investor buying bitcoins is one but a business owner of a publicly listed company making a corporate treasury decision is serious.
1 insight:
3 ideas:
window.fbAsyncInit = function() {
FB.init({appId: "117335488286170", status: true, cookie: true,
xfbml: true});
};
(function() {
var e = document.createElement("script"); e.async = true;
e.src = document.location.protocol +
"//connect.facebook.net/en_US/all.js";
document.getElementById("fb-root").appendChild(e);
}());
31 Dec 2020
Posted by: Rajiv in: Opinions & Thoughts, What did I Learn
I have not watched a single episode of Seinfield nor his standup comedy. I did not know how popular he and his shows are! Then why did I add the Tim Ferris interview of Jerry Seinfield to the listen queue?
1 insight:
2 experiences:
3 ideas:
Following books were referred to: Is This Anything? by Jerry Seinfield, The Last Laugh by Phil Berger, Body for Life by Bill Phillips, Seriously Funny by Gerald Nachman
Link: https://tim.blog/2020/12/08/jerry-seinfeld/
window.fbAsyncInit = function() {
FB.init({appId: "117335488286170", status: true, cookie: true,
xfbml: true});
};
(function() {
var e = document.createElement("script"); e.async = true;
e.src = document.location.protocol +
"//connect.facebook.net/en_US/all.js";
document.getElementById("fb-root").appendChild(e);
}());
25 Dec 2020
Posted by: Rajiv in: Opinions & Thoughts, Technology & Internet, What did I Learn
In the 2000s, Contest2Win was a significant Indian internet success story & Alok Kejriwal was the brains behind it. I looked up to Alok in those days. Hence was curious to hear to his thoughts & what is he up to recently.
1 insight:
2 experiences:
3 ideas:
Link: https://www.youtube.com/watch?v=UKK5YbDP48k
window.fbAsyncInit = function() {
FB.init({appId: "117335488286170", status: true, cookie: true,
xfbml: true});
};
(function() {
var e = document.createElement("script"); e.async = true;
e.src = document.location.protocol +
"//connect.facebook.net/en_US/all.js";
document.getElementById("fb-root").appendChild(e);
}());
Founded in 1559 by Maharana Udai Singh II as a capital of Mewar kingdom. Surrounded by the Aravali ranges, the Jagdish Temple of Lord Vishnu, the City Palace, Lake Pichola are the places to begin your visit. Be at the city palace by 9am to beat the crowds.
Lake Pichola is man-made, built in 1362AD by a trader, not a king. It forms part of the sophisticated lake system of other artifical lakes such as Fateh Sagar.
If you like to include a cliché or two, use the public transport to reach Sajjan Garh/Monsoon Palace for sunset
Chittorgarh, 120km from Udaipur, was capital of Mewar kingdom until Akbar’s siege.
Will go again for:
– Hand-made art/crafts
– Lakes and forts
– Bhel puri
Will not go again for:
– The dust
– Expensive
window.fbAsyncInit = function() {
FB.init({appId: "117335488286170", status: true, cookie: true,
xfbml: true});
};
(function() {
var e = document.createElement("script"); e.async = true;
e.src = document.location.protocol +
"//connect.facebook.net/en_US/all.js";
document.getElementById("fb-root").appendChild(e);
}());
31 Jan 2016
Posted by: Rajiv in: Travel & Vacation
When the plane touches down in Thailand, the mind is set on 2 things: Thai food & Thai massage! Yes, there is a long queue for the visa, the taxi will overcharge, and the traffic is congested. Yet good food & a hearty massage make for a great day in Bangkok.
In a recent short trip to the land of the free (Thai means free, hence land of the free is Thailand), besides the usual indulgence in the sour & spicy Thai flavours the new experience was the Suki, Thai-version of the Chinese hotpot.
The concept of Thai Suki is simple- Every table has a gas or electrically heated pot of broth & ingredients such as vegetables, meat, sea food, noodles can be ordered to choice. The ingredients are cooked in the broth & dipped in a spicy sauce to make for variety of tastes. The broth turns into a nice soup with flavours from the ingredients such as a tinge of sweetness from the corn, the earthy flavours of the mushroom, amazing aromas of celery… Spring onions, Bok Choy, Pumpkin, Carrots, Lotus Roots, Chrysanthemum were some of other vegetables on offer.
We made it to the MK restaurant around 6.30pm on a weekday & the occupancy was close to the capacity of 30-odd tables, primarily locals. As it turned out later, MK is a popular chain of over 300 Suki restaurants operating in multiple countries. The other option is Coca Suki, who are the original creators of the concept in the late-50s.
On other news from this trip: I was accompanied by a friend who was visiting Thailand for the first time. He violated the basic rule of ordering food in Thailand – “never ask for spicy food”. The chef did bloody well to more than meet the request!!!
window.fbAsyncInit = function() {
FB.init({appId: "117335488286170", status: true, cookie: true,
xfbml: true});
};
(function() {
var e = document.createElement("script"); e.async = true;
e.src = document.location.protocol +
"//connect.facebook.net/en_US/all.js";
document.getElementById("fb-root").appendChild(e);
}());
Though a long time resident of Bangalore in India, Tamil is my mother tongue. Over the years of travel, a few interesting experiences:
Context: Cafeteria in Paris, France @ Lunch time
With the lunch tray in hand, am standing in the queue to pay at the counter. From nowhere, I heard a voice “Eppadi irukkirikal” (meaning “how are you”). First time in Paris and only a couple of colleagues whom I had just met, for that minute I was sure something was wrong in my head and am listening non-existent voices. As I recovered from the shock, the smiling lady at the counter introduced herself as having come from Pondicherry, India and hence Tamil speaking! Pondy was a French colony.
Context: Hotel room in Paris, France @ 7pm on a freezing Monday
Pizza craving had set in. Just for some kicks, decided to rehearse French to order. After some time of “livraison domicile s’il vous plait” (meaning “home delivery please”) and more practice, called a local pizza place. The patient order taker on the other side worked through my broken French accent and managed to take my order. Towards the end, he asked for my full name. I was in half the mind to question the need for full name yet just decided to give in. The guy repeated my name and then says “sir tamil ah?!!” (meaning “are you Tamil”) Dumbstruck! Turns out he is of Sri Lankan origin, coming from Tamil-speaking Jaffna, north of SL.
Context: Nasi Kandar restaurant in Shah Alam, Malaysia @ Lunch time
Nasi Kandar is Malaysian dish-rice with variety of curries and sides. Typically, the restaurants are quick self-service restaurants. One afternoon, with 2 Malaysian colleagues we headed to one of these for lunch. After serving our plates and paying at the counter, we took our seats. One of my colleagues, called the waiter and requested for something (can’t exactly recall what it was). After a couple of failed attempts, I pitched in and spoke Tamil to the waiter knowing well most of them were either from Tamil Nadu, India or conversant in Tamil. How many times does a foreigner get to help locals communicate!
Tamil is the official language of Sri Lanka and Singapore, besides India.
window.fbAsyncInit = function() {
FB.init({appId: "117335488286170", status: true, cookie: true,
xfbml: true});
};
(function() {
var e = document.createElement("script"); e.async = true;
e.src = document.location.protocol +
"//connect.facebook.net/en_US/all.js";
document.getElementById("fb-root").appendChild(e);
}());