Weekend readings - 5 Feb, 2021 : Edition 27

A compilation of few interesting, multi-disciplinary reading links from the internet

Section 1 - Investing & Personal Finance

(a) I have often said before: Market does not hate or like any stock. It is agnostic in that sense. It rewards handsomely those who can predict business cycles better than others over the years. This brilliant post by Fidelity folks about business cycles and how it fits into asset allocation and portfolio construction framework.

(b) This is a great conversation between Dan Davidowitz & Jeff Mueller of Polen Capital and Tanos Santo of Columbia Business School on their investment philosophy and approach.

We’ve only owned 123 companies in 31 years and that includes the 21 we own today. The compounding is really what drive the returns. You align yourself with 20 or 25 great companies that can compound for not just years but decades oftentimes and they do the hard work for you.

Section 2 - Economic Trends & Themes

(a) “Let’s do a clubhouse” was a key phrase this week when Elon Musk invited people on this new audio based social network. This ET article explores why the company valuation is pegged at 1bn$. I tried the app for a couple of sessions as a friend provided the invitation and came out thoroughly sold out. Do check out the app!

(b) Last Friday, news broke that The Cryptocurrency and Regulation of Official Digital Currency Bill 2021 would prohibit ‘private’ cryptocurrencies in India and provide a framework for creating an official digital currency to be issued by RBI. The details are sketchy at this moment but it has made a lot of investors nervous. This twitter thread provides a counter punch detailing how Crypto technologies like Blockchain can be useful in the times to come.

Section 3 - Personality study & Development

(a) The power of deeply listening to another person, with full attention, and without judgment or an agenda, is one of the most profoundly healing acts a person can provide to another. This HBR article delves into how corporate listening circle empower employees.

In the listening circle, employees are invited to talk openly and honestly about an issue, like a meaningful experience they had at work. They’re trained to listen without interrupting, and only one person talks at a time.

(b) The human brain loves a challenge, but only if it is within an optimal zone of difficulty. This piece outlines the Goldilocks rule that humans experience peak motivation when working on tasks that are right on the edge of their current abilities. Not too hard. Not too easy. Just right.

Section 4 - Business History & management

(a) The market, traditional asset managers and analysts are considered benchmarks to be the center of the whole portfolio management universe. They were measured against benchmarks and that turned them into idols of sorts. This podcast involving Cathie wood from Ark Invest talks how innovation is often not priced in the market and how the most disruptive ideas in the market have been least talked about.

(b) This piece in Mint is about one of the oldest success stories in Indian pharma – Cipla and its chairman, Dr Yusuf K Hamied. Shrabonti Bagchi talks to him on a special occasion ahead of the launch of a book on the company’s 85 year history titled “Caring For Life: The Cipla Story Since 1935”, by Tulsi Vatsal.

Section 5 - Reading  & Entertainment

(a) Jackie Shroff has been acting for over 37 years in more than 200 films. While we often credit many of his contemporaries with staying relevant (Anil Kapoor, are you listening?), we may have overlooked his breadth of work, especially in the last few years. This article by Mohini Chaudhuri tells us why punctuated by a strong sense of humour, one can stay relevant.

(b) Your problems—our problems—are not new. They are not different. They are the same things humans have always struggled with, just dressed up in modern language and contemporary garb.  This article outlines the positive impact of being a voracious reader and how it opens up your mind in taking a peek into the future and hence, solve those daily problems much better.

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Additional links:

Alpha Investing Podcast - FM does a Pujara, need a Pant like execution

Adroit PMS Feb’21 Newsletter - Hopes of Reforms 3.0 beckons

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Now listening : Prateek Kuhad | Cold/mess

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That's it for me. Have a great weekend!

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