The Hard Knock Life of a Value Investor

There have been a number of academic studies that outline the outperformance of a value based investing approach relative to a growth based one. However, the purpose of this post isn’t to delve into those studies, but to discuss the psychological barriers that makes following a value based investment approach difficult. Fundamentally, value investing is…

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SEBI (the Indian securities regulator) has provided detailed guidelines for foreign investors investing directly in India

“Stock market regulator SEBI on Friday prescribed detailed guidelines for qualified foreign investors (QFIs) to directly invest in the Indian equity market. A QFI is a resident of a country compliant with the Financial Action Task Force (FATF) standards to combat money-laundering and terrorist financing. The country should also be a signatory to the International Organisation…

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India to Open Equity Market to non-Institutional Investors

On January 1, 2011 the Finance Ministry of India decided for the first time to allow QFI’s (Qualified Foreign Investors) to invest in the Indian market. Prior to the ruling only Indians, non-resident Indian (NRIs) and foreign institutional investors were allowed to invest directly in the Indian equity market. I think this is great news…

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Buy India, Sell China

In a March 2010 report titled, “Buy Chaos, Sell Order” CLSA strategist Russell Napier makes the case that returns from Indian equities will surpass Chinese equities over the medium and long-term. He makes the argument that the Asian century will begin when Asian economies transition from Mercantilist models to more Western consumption driven models. This…

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The trade of the decade

In his book Endgame, John Mauldin states the following: “at the bottom of the next US recession, we think emerging market countries could see their economies and stock markets finally decouple from the United States, and at that point, they could become the trade of the decade. We suggest investors use the time to find…

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