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This week Mr. Charlie Munger - Guru of Warren Buffett and legendary investor passed away at the age of 99. Today's newsletter is a tribute to his life long learning and compounding spirit. Don't miss my twitter thread with 99 lessons covered here.

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Sectors in Focus

Major Corporate Developments This Week

1. H.G. Infra Engineering secured Rs. 1,303.11 crore order from the NHAI for construction of the Greenfield Varanasi-Ranchi-Kolkata highway.
2. ITD Cementation India won Rs. 1,001 crore contracts for civil and hydro-mechanical work in Andhra Pradesh.
3. Larsen & Toubro incorporated its wholly owned subsidiary L&T Semiconductor Technologies Ltd. on November 29.
4. Zydus receives final approval from the USFDA for Ivabradine Tablets,
5. NCC received two new orders Rs. 553.48 crores (Excluding GST) in the month of November' 23. The orders are relating to Building Division.
6. Venus Remedies received Marketing Authorizations for Paclitaxel 100m9/16.7rn1 and Zolendronic Acid 4mg in the Philippines, located in the dynamic region of Asia (South East).
7. Tata Coffee board approves setting up of an additional 5500 MT in Vietnam
8. RateGain partners with Best Airlines Rep to provide accurate pricing intelligence for partner airlines.
9. Shivalik Bimetal Controls signed MoU with Metalor Technologies International SA for setting up a Joint venture to produce Electrical Contacts
10. Vascon Engineering board approves fund raise of up to Rs. 125 cr via QIP.
11. Aurobindo Pharma arm Eugia Pharma gets USFDA nod for Budesonide Inhalation suspension.
12. MapmyIndia: board approves raising funds up to Rs 500 cr via QIP
13. Fortis Healthcare: The company's subsidiaries entered into definitive agreements with MGM Healthcare Pvt. for the sale and divestment of Fortis Malar Hospital and related assets to MGM for an aggregate consideration of Rs 128 crore.
14. Metro Brands: The company has signed a trademark licence agreement with Foot Locker Retail, Inc., granting exclusive rights for opening and operating athletic and casual footwear and apparel stores under the brand names “Foot Locker” and “Kids Foot Locker” through brick-and-mortar stores in India.
15. Ultratech Cement: The cement manufacturer acquired the 0.54 MTPA cement grinding assets of Burnpur Cement for Rs 170 crore.

TechnoFunda Investing Quote from Legends

Charlie Munger's use of inversion as a mental model is a groundbreaking problem-solving technique inspired by Jacobi's "invert, always invert" principle. It involves looking at problems from a reversed perspective, focusing on avoiding negative outcomes rather than pursuing positive ones. For instance, in fostering innovation, inversion entails identifying and addressing factors hindering innovation rather than solely focusing on promoting it. Similarly, contemplating a good life involves considering aspects that lead to misery to avoid them.

In the context of investing, Munger's inversion principle advises considering not only potential gains but also potential pitfalls. It encourages investors to actively address risks and downside scenarios instead of solely concentrating on success factors. This approach aligns with Munger's philosophy of incorporating a margin of safety in investment decisions, fostering a more cautious approach. Munger's adept use of mental models, including inversion, underscores the value of employing diverse cognitive tools from various disciplines in navigating complex investment situations.

📚 Book I'm Reading This Week ​​​​Poor Charlie's Almanack Discover the timeless wisdom of Charlie Munger, the legendary vice chair of Berkshire Hathaway, in "Poor Charlie's Almanack." Through folksy anecdotes and invaluable insights spanning a century, Munger shares his recipe for investment success, challenging conventional financial wisdom. This reissued gem presents a series of warm fireside chats, showcasing Munger's evolution of wisdom and emphasizing the value of mental models over formulas. Packed with practical examples, it's a must-read for both seasoned investors and newcomers, offering a philosophical companion to the vibrant experience of a Berkshire annual meeting. Dive into Munger's bountiful wit and wisdom that has stood the test of time, making it a celebration of nearly a century of unparalleled success. List of All Books I have Shared →

TechnoFunda 101 - Power Capsules

Learn technical as well as fundamental concept in a simple way

Understanding Breakouts:

At its core, a breakout symbolizes a moment when a stock price transcends beyond a predefined support or resistance level, often accompanied by a surge in trading volume. These levels typically stem from historical price movements, creating recognizable patterns within technical analysis.

Significance of Breakouts -

Why should investors care about breakouts? These moments signify potential shifts in momentum, often leading to substantial price movements. Psychologically, they mark instances where new market participants are willing to buy at higher prices or sell at lower prices compared to previously established ranges.

In this chart (only for illustration purpose, not a recommendation), we see:

1. Resistance Line – Denoted by the horizontal line where the stock has previously peaked but not crossed.
2. Breakout Candle – A large bullish candle crosses the resistance convincingly, suggesting buyers have taken control.
3. Volume – Notice the height of the volume bars during the breakout, confirming the strength behind this price movement.

Key Insight: Volume's Role -

Volume serves as a crucial accomplice to breakouts. An absence of increased volume during a breakout might indicate a higher likelihood of a false breakout. Remember, volume validates the strength behind the price movement.

The Fundamental Layer -

While our strategy leans heavily on technical analysis, a 'TechnoFunda' investor strategically aligns breakout moments with robust fundamental scenarios. These might include earnings beats, positive news releases, or sector strength. This fusion fortifies the trade's potential for success, lending a fundamental backbone to our technically-driven strategy.

🚀 My Content For This Week 🎬 YouTube: 7 Things You Need To Know for IPO Investing​ 📋 Twitter: Vivek Mashrani, CFA @MashraniVivek Sad to know that one of the greatest investing legend has passed away.... He was 99... As a tribute to this legend I have compiled thread of 99 powerful lessons... These lessons will help us become best version of ourselves... here we go... 1. BE A LEARNING MACHINE (1/n) 9:20 AM • Nov 29, 2023 96 Retweets 340 Likes Read 6 replies ​

🎙️ My Weekly Podcast For You

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Keep Compounding...

Vivek Mashrani, CFA Founder, TechnoFunda Investing

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