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VALUE TORTOISE MAGAZINE EDITION 2

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Page 1: MAGAZINE TORTOISE VALUE · what can lagaan teach us about investing?,q/djddq wkhyloodjhuvzrqwkhjdph dvwkhodvwedoozdv dqr edoozklfkohgwrdqh[wudedoo :klohdoozrunhgrxw ... 9z8 lp u 0

VALUETORTOISE MAGAZINE

EDITION 2

Page 2: MAGAZINE TORTOISE VALUE · what can lagaan teach us about investing?,q/djddq wkhyloodjhuvzrqwkhjdph dvwkhodvwedoozdv dqr edoozklfkohgwrdqh[wudedoo :klohdoozrunhgrxw ... 9z8 lp u 0

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

Page 3: MAGAZINE TORTOISE VALUE · what can lagaan teach us about investing?,q/djddq wkhyloodjhuvzrqwkhjdph dvwkhodvwedoozdv dqr edoozklfkohgwrdqh[wudedoo :klohdoozrunhgrxw ... 9z8 lp u 0

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

Page 4: MAGAZINE TORTOISE VALUE · what can lagaan teach us about investing?,q/djddq wkhyloodjhuvzrqwkhjdph dvwkhodvwedoozdv dqr edoozklfkohgwrdqh[wudedoo :klohdoozrunhgrxw ... 9z8 lp u 0

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

Page 5: MAGAZINE TORTOISE VALUE · what can lagaan teach us about investing?,q/djddq wkhyloodjhuvzrqwkhjdph dvwkhodvwedoozdv dqr edoozklfkohgwrdqh[wudedoo :klohdoozrunhgrxw ... 9z8 lp u 0

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.

Page 6: MAGAZINE TORTOISE VALUE · what can lagaan teach us about investing?,q/djddq wkhyloodjhuvzrqwkhjdph dvwkhodvwedoozdv dqr edoozklfkohgwrdqh[wudedoo :klohdoozrunhgrxw ... 9z8 lp u 0

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

Page 7: MAGAZINE TORTOISE VALUE · what can lagaan teach us about investing?,q/djddq wkhyloodjhuvzrqwkhjdph dvwkhodvwedoozdv dqr edoozklfkohgwrdqh[wudedoo :klohdoozrunhgrxw ... 9z8 lp u 0

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

Page 8: MAGAZINE TORTOISE VALUE · what can lagaan teach us about investing?,q/djddq wkhyloodjhuvzrqwkhjdph dvwkhodvwedoozdv dqr edoozklfkohgwrdqh[wudedoo :klohdoozrunhgrxw ... 9z8 lp u 0

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.

Page 9: MAGAZINE TORTOISE VALUE · what can lagaan teach us about investing?,q/djddq wkhyloodjhuvzrqwkhjdph dvwkhodvwedoozdv dqr edoozklfkohgwrdqh[wudedoo :klohdoozrunhgrxw ... 9z8 lp u 0

Moneycontrol StockEdge

ET MarketsIIFL Markets Investing.com

6 MOBILE APPS FOR THE INDIAN STOCK MARKET

TickerTape

@valuetortoise

Page 10: MAGAZINE TORTOISE VALUE · what can lagaan teach us about investing?,q/djddq wkhyloodjhuvzrqwkhjdph dvwkhodvwedoozdv dqr edoozklfkohgwrdqh[wudedoo :klohdoozrunhgrxw ... 9z8 lp u 0

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

Page 11: MAGAZINE TORTOISE VALUE · what can lagaan teach us about investing?,q/djddq wkhyloodjhuvzrqwkhjdph dvwkhodvwedoozdv dqr edoozklfkohgwrdqh[wudedoo :klohdoozrunhgrxw ... 9z8 lp u 0

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

Page 12: MAGAZINE TORTOISE VALUE · what can lagaan teach us about investing?,q/djddq wkhyloodjhuvzrqwkhjdph dvwkhodvwedoozdv dqr edoozklfkohgwrdqh[wudedoo :klohdoozrunhgrxw ... 9z8 lp u 0

For more content like

this do check out

@valuetortoise on

Instagram

Page 13: MAGAZINE TORTOISE VALUE · what can lagaan teach us about investing?,q/djddq wkhyloodjhuvzrqwkhjdph dvwkhodvwedoozdv dqr edoozklfkohgwrdqh[wudedoo :klohdoozrunhgrxw ... 9z8 lp u 0

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.

Page 14: MAGAZINE TORTOISE VALUE · what can lagaan teach us about investing?,q/djddq wkhyloodjhuvzrqwkhjdph dvwkhodvwedoozdv dqr edoozklfkohgwrdqh[wudedoo :klohdoozrunhgrxw ... 9z8 lp u 0

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

Page 15: MAGAZINE TORTOISE VALUE · what can lagaan teach us about investing?,q/djddq wkhyloodjhuvzrqwkhjdph dvwkhodvwedoozdv dqr edoozklfkohgwrdqh[wudedoo :klohdoozrunhgrxw ... 9z8 lp u 0

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

Page 16: MAGAZINE TORTOISE VALUE · what can lagaan teach us about investing?,q/djddq wkhyloodjhuvzrqwkhjdph dvwkhodvwedoozdv dqr edoozklfkohgwrdqh[wudedoo :klohdoozrunhgrxw ... 9z8 lp u 0

6 BOOKS ON BEHAVIORAL ECONOMICS

Value Picks

Page 17: MAGAZINE TORTOISE VALUE · what can lagaan teach us about investing?,q/djddq wkhyloodjhuvzrqwkhjdph dvwkhodvwedoozdv dqr edoozklfkohgwrdqh[wudedoo :klohdoozrunhgrxw ... 9z8 lp u 0

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

Page 18: MAGAZINE TORTOISE VALUE · what can lagaan teach us about investing?,q/djddq wkhyloodjhuvzrqwkhjdph dvwkhodvwedoozdv dqr edoozklfkohgwrdqh[wudedoo :klohdoozrunhgrxw ... 9z8 lp u 0

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

Page 19: MAGAZINE TORTOISE VALUE · what can lagaan teach us about investing?,q/djddq wkhyloodjhuvzrqwkhjdph dvwkhodvwedoozdv dqr edoozklfkohgwrdqh[wudedoo :klohdoozrunhgrxw ... 9z8 lp u 0

@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%

Page 20: MAGAZINE TORTOISE VALUE · what can lagaan teach us about investing?,q/djddq wkhyloodjhuvzrqwkhjdph dvwkhodvwedoozdv dqr edoozklfkohgwrdqh[wudedoo :klohdoozrunhgrxw ... 9z8 lp u 0

SWIPE LEFT

KEEPING IT SIMPLE

I invest in aeronautical and bio tech

companies. what about you?

water

Page 21: MAGAZINE TORTOISE VALUE · what can lagaan teach us about investing?,q/djddq wkhyloodjhuvzrqwkhjdph dvwkhodvwedoozdv dqr edoozklfkohgwrdqh[wudedoo :klohdoozrunhgrxw ... 9z8 lp u 0

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 !