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Sectors in Focus

Major Corporate Developments This Week

1. ACE: Japanese construction equipment maker Kato works to set up joint venture with action construction equipment to enter Indian market.
2. Indian Oil: Company in joint venture pact with GPS Renewables for sustainable energy solutions.
3. Escorts Kubota: Company plans investment of up to Rs 4,500 crore for new Rajasthan unit.
4. Brigade: Company signs agreement to develop a third world trade center tower at inforpark, kochi, company says the 1.5b rupees project will be developed by brigade group.
5. Sapphire Foods: Company Approved Sub-Division/Split Of Shares In 1:5 Ratio
6. Gensol Engineering: Company has been allotted the greenshoe option of 250 MW/500 MWh by Gujarat Urja Vikas Nigam Limited
7. Reliance Industries: Jio Net Adds 26.9 Lakh Users In April Vs 21.4 Lakh In March
8. Aurionpro: Company says Long Term Revenue Growth Rate Goal Of 25%-30% Per Annum
9. Chemplast Sanmar: Company board to meet on June 24 to consider raising funds
10. Mas Financial: Company launches QIP worth ₹400 crore, upside option of further ₹100 crore
11. Som Distilleries: Madhya Pradesh government suspends license of Som Distilleries in child labour case
12. Sun Pharma: Company Says Dadra Facility Receives Warning Letter From USFDA
13. Sona BLW: Company says received certification for its traction motor for electric 3-wheelers under production- linked incentive scheme
14. Seamec: Company owns and operates 4 multi-support vessels for diving services and subsea operations and has expanded into main fleet shipping with 3 acquired bulk carriers.
15. PDS Limited: Company unit entered into share purchase agreement with abhinav gupta buyer, agreement for proposed sale of entire equity stake held by MTGL in blueprint design
16. HG Infra: Company Received a Letter from South Central Railway Worth 447 Cr Rs
17. Tata Motors: JLR and Chery sign LoI to license Freelander Brand to CJLR for creation of EVs in China
18. Craftsman Automation: Company board approves raising up to Rs 1,200 crore via QIP.
19. Bharat Forge: Company makes additional investment of $40 million in unit Bharat Forge America

TechnoFunda Investing Quote from Legends -

Benjamin Graham's quote, "In the short run, the market is a voting machine but in the long run, it is a weighing machine," encapsulates the idea that stock prices can be highly influenced by emotions, popularity, and speculative behavior in the short term, much like a popularity contest or voting machine. However, over the long term, the true value of a company, akin to a weighing machine, will prevail. This means that despite short-term volatility, a company's fundamental worth, driven by its financial health and performance, will ultimately be reflected in its stock price.

📚 Book I'm Reading This Week LEARN TO EARN Learn to Earn" is a book written by Peter Lynch and John Rothchild, first published in 1989. The book focuses on the investment strategy of "Dollar-Cost Averaging" and provides guidance on how individuals can invest in the stock market to achieve long-term financial success. The authors emphasize the importance of research, patience, and discipline in investing. The book has been widely praised for its accessible and straightforward explanations of complex investment concepts, making it a valuable resource for both beginners and experienced investors. List of All Books I have Shared →

TechnoFunda 101 - Power Capsules

Learn technical as well as fundamental concept in a simple way

Invert, Always Invert

The Charlie Munger's "Invert, Always Invert" principle is a powerful tool that encourages investors not just to focus on what they want to achieve, but to also consider what they want to avoid. This approach offers a more comprehensive understanding of potential outcomes and helps in creating a balanced perspective.

Application to Investing

When evaluating an investment opportunity, it’s easy to get carried away by potential gains. However, Munger's principle advises flipping this focus by asking:

What are the risks involved? How likely are they to occur?

By placing a strong emphasis on identifying and avoiding risks, investors can make more informed and prudent decisions. This method ensures that you are not blindsided by potential pitfalls that could derail your investment goals.

Applying Inversion to Goal-Setting

Inversion isn't limited to assessing investments—it can also be applied to setting financial goals. Instead of just dreaming about success, consider what failure looks like and what actions or inactions could lead you there. By understanding and planning to avoid these negative outcomes, you align your actions more effectively with your long-term objectives and values.

Focusing on Downside Risk

An essential aspect of this mental model is downside risk. Rather than solely concentrating on the potential upside, evaluate what could go wrong.

Consider:

• Market fluctuations
• Economic downturns
• Company-specific issues

By factoring in these possibilities, you enhance your risk management strategy. Munger’s emphasis on avoiding failure helps ensure that your investments are more resilient and better prepared to withstand adverse conditions.

Conclusion

By embracing Charlie Munger's "Invert, Always Invert" mantra, investors can significantly improve their risk management and decision-making processes. This approach promotes a thorough evaluation of both the positive and negative aspects of each investment opportunity, fostering a more balanced perspective.

Remember, risk management always comes first!

This principle not only enhances your investment discipline but also aligns your actions with your long-term financial objectives, helping you navigate the complexities of the market with greater confidence and wisdom.

🚀 My Content For This Week 🎬 YouTube: Technical Analysis for Beginner Investors | Price Action for Stock Market​ ​ 📋 Twitter: Vivek Mashrani, CFA @MashraniVivek Unlock market secrets with #DowTheory! Discover the principles that define major trends and shape smarter investment strategies 📈🔍 #Investing #TechnicalAnalysis A Thread…. 5:26 PM • Jun 22, 2024 1 Retweets 13 Likes Read 1 replies ​

🎙️ My Weekly Podcast For You

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Keep Compounding...

Vivek Mashrani, CFA Founder, TechnoFunda Investing

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