Bill Gates’ much-awaited bi-annual reading list had a few non-reading recommendations this time around for those stuck at home and looking for a distraction. The eclectic list featured TV shows like A Million Little Things, This is Us and I, Claudius. But among the entertainment options was a surprising wild card entry - playing bridge. On his personal blog, Gates confessed to playing bridge with his favourite playing partner - fellow billionaire Warren Buffett. “I’ve been playing bridge for years—Warren Buffett is my favourite partner. We don’t get together in person now that we’re sheltering in place, but we still play online,” he wrote. “There are lots of great options out there, including this guide to learning the game, and the online platform that Warren and I play on, which is called Bridge Base. I'll keep our screen names between us.” This revelation is just an example of the deep friendship Gates and Buffett share. Here … [Read more...] about Bridge, golf and mattress testing: Inside Bill Gates and Warren Buffett’s many years of friendship
Invest like warren buffett
By Zheping Huang When Justin Sun met Warren Buffett for dinner in January, he wasn’t seeking advice on stocks. The crypto mogul had spent a record $4.6 million at a charity auction for the opportunity to lecture the world’s most famous investor on the benefits of Bitcoin. It was exactly the sort of behavior that Sun’s known for -- abrasive, ostentatious and, ultimately, impossible to ignore. Like the $200 billion crypto industry itself, he is young and hungry for the respect of traditional financiers like Buffett, who deems Bitcoin basically worthless. Still shy of his 30th birthday, Sun founded one of the largest blockchain platforms, Tron, in 2017 and turned it into a virtual Las Vegas with gambling apps. He’s rubbed shoulders with Apple Inc. and Alibaba Group Holding Ltd. founders, hired celebrity endorsers like the late Kobe Bryant and drawn accusations of plagiarism, which he has denied, more than once. What he says and does can move crypto prices, and … [Read more...] about Even a dubious Warren Buffett can’t stop this crypto-world casino czar
Valuation Guru Aswath Damodaran has made a wakeup call to those who believe in old-style value investing. The Professor of Finance at Stern School of Business at New York University (NYU) says value investors have got stuck in the 20th century. In an interaction with ETNow, he said value and growth investing has become a very lazy categorisation of investing. “The former style lost out to the latter over the last decade. Stocks with low price-to-earnings (P/E) ratios and high dividend yields have been hurt the most,” he said. Often referred to as the 'Dean of Valuation’, Damodaran said as an investor one should not convince oneself that he is right and the rest of the world is wrong. “I think book value has completely lost its meaning. Value investing is not just buying low P/E and price-to-book stocks. I describe valuation as a craft. The Covid-19 crisis has humbled me further. There is so much to learn,” he said. Commenting on the events of Calendar … [Read more...] about Old style value investing doesn’t work anymore, says Damodaran
NEW DELHI: Equity investors have taken a big hit in the recent selloff on Dalal Street due to concerns over the coronavirus pandemic. The bloodbath has forced investors to think about their equity investment and now they are wondering whether to shift to fixed deposits or change investment strategy. Some fear they might never be able to recover their money again. Kailash Kulkarni, Chief Executive Officer at L&T Mutual Fund tried to clear this dilemma in his recent letter to investors. He wrote that the present situation is worrisome and has only multiplied with the coronavirus pandemic now looming on every country around the globe. In India too, BSE Sensex and NSE Nifty have tumbled nearly 30 per cent till date from their respective all-time highs hit in January. “As governments and world organisations are taking measures to handle this outbreak, the battle seems to be long drawn at this point. Obviously as an investor I am worried,” said Kulkarni. He added that the … [Read more...] about Should you shift to FDs or tweak investment strategy? Here’s a cue
Bonds have much more money invested in them worldwide than in equities, but don’t get the column inches they deserve. That’s because bond returns don’t appear as spectacular as those in stocks, but in stressful times, they are good bets - more so if state backed. So, the latest Bharat Bond ETF issue will likely draw investors, who should earn 150 basis points more than the yields on existing tax-free debt. Set to be launched in July, the latest Bharat Bond ETF series aims to raise Rs 14,000 crore. This tranche of mutual fund units, tapping into retail savings, is estimated to yield a tax-free return of 6.21% for people in the marginal tax bracket. Those returns easily outpace the gains from existing tax-free bonds in the secondary market, perhaps by more than 150 basis points. So, these are cool bets for high net worth individuals shifting funds from risky assets. Tax Free Bonds (AAA) are now trading at 4.65% yield-to-maturity, a gauge used to measure returns on … [Read more...] about Should you invest in Bharat Bond ETF?