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VALUETORTOISE MAGAZINE
EDITION 2
WHAT IS IN THISEDITION?
Why do companies spend million on
advertising?
What is the Corruption Perception
Index?
Should I invest in the Stock Market?
Investing in New Zealand?
Behavioral Economics Book
Suggestions
What is a covered call
and lots more
SHOULD YOU INVEST INTHE STOCK MARKET?
NO
Do you have an
emergency fund that
will last you 6 months?
YES NODo you have a strategy
on how to screen and
analyze stocks?
YES Don't Invest
Good luck! Look into index
and mutual funds
5 books Kobe Bryant enjoyedreading
B L I N K B Y MA LCO LM G L ADWE L L
S HO E DOG B Y P H I L K N I G H T
TH E A L CH EM I S T B Y P A U LO CO E LHO
R E L E N T L E S S B Y T I M G RO V E R
S UNN Y B Y J A S ON R E Y NO LD S
CORRUPTIONPERCEPTION INDEX
The Corruption Perceptions Index ranks countries "by their perceived
levels of public sector corruption. The higher the score the lower the
perception of corruption in that country. New Zealand has the
lowest corruption as of 2020.
Margin Call
Betting on Zero
Wolf of Wall Street
The Big Short
Wall Street
Rogue Trader
Inside Job
Becoming Warren Buffett
Enron: The Smartest Guys in the Room
Too Big to Fail
10 MOVIES FOR INVESTORS
INVESTING IN NEW ZEALAND?
The NZX 50 Index (NZ50) is the main stock market index in New
Zealand. It comprises the 50 biggest stocks by free-float market
capitalisation trading on the New Zealand Stock Market
The IShares MSCI New Zealand ETF (ENZL) allows US investors
to get direct exposure to the NZ market.
(NOT INVESTING ADVICE)
New Zealand Ranking
Corruption - 1 (least )
World Peace Index - 2
Ease to do Business - 1
Performance of ETF
1 Year -9.16%
3 Year - 10.49 (Annualized)
5 Year - 14.38 (Annualized)
As of June 30th, 2020
WHAT CAN LAGAAN TEACHUS ABOUT INVESTING?
In Lagaan, the villagers won the game, as the last ball was
a no-ball which led to an extra ball. While all worked out,
in investing we need to judge stuff not merely by the
outcome but by the probability of that outcome occurring.
If we simulate the last ball in Lagaan a 1000 times, the
odds that it is a no-ball are not going to be a lot. Of
course, this is a movie and there is a plot but while
investing we need to make sure we account for the odds
and not merely the result. To simplify the same, you don’t
consider heads to be a good bet just because the
outcome of a coin toss was heads.
Moneycontrol StockEdge
ET MarketsIIFL Markets Investing.com
6 MOBILE APPS FOR THE INDIAN STOCK MARKET
TickerTape
@valuetortoise
The United States GDP percapita in 1960 was 3007. In2018 India has a GDP per
capita of 2009.
NUMB E R S T A K E N F R OM WOR LD B AN K
The average is multiplied by the strike rate and divided by 100 to try to
incorporate speed with consistency. The X axis highlights longevity. Of
course different batsmen from different generations cannot be
compared due to different rules. However Kohli does seem on track to
be the greatest ever if genertional differences are disregarded.
BEST ODI BATSMEN EVER?www.valuetortoise.com
Innings
(Ave
rag
e)*
(Str
ike
Ra
te)/
100
Tendulkar
KohliABD
Dhoni
Ponting
RN ten
Doeschate
GR Marsh
For more content like
this do check out
@valuetortoise on
W H A T C A N W E L E A R NF R O M D A R K K N I G H T
R I S E S ?
Remember the climb
Bruce Wayne made
from the pit?
Value Investing is similar
to that. As mohnish
pabrai suggests look for
businesses with strong
fundamentals in
distressed industries.
A covered call is an option stratergy when you sell a call
option and at the same time own the amount of stock that will
be sold if the call option is exercised.
WHAT IS A COVERED CALL?
www.valuetortoise.com Follow @valuetortoise
If you bought a stock at 1000, then you could sell a call at
1200. If at expiry the stock price is 1250 then the call will be
exercised and you would have to sell the stock you own at
1200. You make money as you bought it at 1000. However you
lost the potential profit of 50 bucks. You did gain the call
option premium though.
If at expiry the stock is 1199 or lower nothing happens and you
gain the option premium.
Investing
Simplified
W H O O W N S T H EM A J O R B R A N D S ?
Avenue Supermarts
Future Retail
Trent
Aditya Birla
Fashion Retial
www.valuetortoise.com
@valuetortoise
Dmart
Big Bazaar, Easy
Day,Foodhall,
HomeTown, ezone,
Heritage, lifestyle
Westside, Zudio, Star
Bazaar, Landmark and
Zara India
Louis Philippe, Peter
England, Pantaloons.
Van Heusen, Allen
Solly
6 BOOKS ON BEHAVIORAL ECONOMICS
Value Picks
Research by economists Russell Smyth and Vinod Mishra of Monash
University in Australia suggested that the performance of the Indian cricket
team in ODIs can impact the fortunes of the Indian stock market. “While a
win by the Indian cricket team has no statistically significant upward impact
on stock market returns, a loss generates a significant downward movement
in the stock market.
They said, the Nifty index was generally flat the day after a win, but the day
following a loss, the index dropped by an average of 0.231%. The drop
following a loss was more than seven times greater than the movement
following a win. Furthermore when Sachin Tendulkar is on the losing side,
the loss on the stock market is almost 20% more.
Sachin Tendulkar and the Sensex
Assume that the total sales possible is 10.The company may spend
millions on advertising to merely split the sales. If they had spent
none they still could have arrived at the same outcome. However if
one company advertisies while the other does not then the one that
does not advertize is doomed. Lack of trust and competition forces
advertisment. This is a basic game theory example.
WHY DO COMPANIES SPENDMILLIONS ON ADVERTISING?
ADVERTISE
NOT
ADVERTISE
5, 5
COMPANY 1
NOT
ADVERTISEADVERTISEC
O
M
P
A
N
Y
2
8, 2
2, 8 5, 5
@valuetortoise
H O W D O P R E M I E R L E A G U EC L U B S E A R N M O N E Y
Commercial revenue- This includes the sponsorship revenue .
Retail and merchandising revenue as well as revenue from apparel
licensing. Usually big clubs have close to 40% of their revenue from this
source.
Broadcasting revenue - This is the revenue teams get through the
frequency of appearances, performance based share of league
broadcasting revenue, Champions League/Europe League distributions
and distribution through linear and digital platforms. This in big clubs is
usually close to 40% of the revenue.
Matchday revenue - Matchday revenue which is through ticket sales
and food and beverage sales. Usually close to 20%
SWIPE LEFT
KEEPING IT SIMPLE
I invest in aeronautical and bio tech
companies. what about you?
water
W W W . V A L U E T O R T O I S E . C O M
HOPE YOULIKED EDITION
2 OF THEMAGAZINE
O U R W E B S I T E H A S A L L T H EO T H E R E D I T I O N S !