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How BSE 100 missed the Adani’s?
Did you know that India’s most prominent 100 companies mapped as S&P BSE 100 experienced its emerging moment when in a matter of nearly 36 months, four Adani group companies scaled up 1000 to 2000 times? They continued to fly under the radar as they did not have enough size [market capitalization] to get a…
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My Q&A with ChatGPT
My first interaction with ChatGPT creates a lot of hope for the future. However, a lot more needs to be done before we can teach machines to assimilate knowledge. I spent time on the playground asking the following 30 questions. Though initially answers seemed a lot coherent, it did not take me much time to trip the…
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AlphaBlock partners with social investing platform Seeds to launch blue chip Smart Beta Stock Index in Indonesia
AlphaBlock Technologies Inc. (“AlphaBlock”) today announced that it is launching a new blue chip stock index in partnership with Seeds, an Indonesian social investing platform. The new index, called Exceptional & Rich Indonesia 30, will use AlphaBlock’s open indexing method to enable a smart beta portfolio that is expected to outperform the IDX 30, similar to what…
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BRICs, storytelling, and dispersion mechanisms
Dreaming BRICs was a Goldman Sachs paper released on 1 October 2003, which popularized the term BRIC [Brazil, Russia, India, China] with a macroeconomic investment thesis. The authors speculated a spectacular growth of the emerging block. Revisiting the feature one can see that the last 19 years have not worked out well for the forecast.…
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S&P’s Oil Bias
S&P’s flawed indexing methodology spills over risk into the commodities markets. If you are an investor seeking commodities exposure because you understand that an inflationary world means allocation to commodities, you are in for a big surprise. Out of the $153 trillion total global assets, only $18 trillion represent alternative asset classes like PE, Real…
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S&P’s Google Paradox
Concentration over Representation Standard Statistics Co & Poor’s Publishing Co merger back in 1941 had a lot to do with the American Railroad Journal managed by Varnum Poor. The merger increased the number of the list of stocks to 490. This was a significant jump and leapfrogged the merged entity into the top spot among…
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The Active SPY!
This is not intuitive thinking but your passive SPY (S&P500 ETF) sitting in your pension fund is only passive and low risk in perception. What you call a zero fee (or near zero fees) portfolio is not only concentrated but it is as concentrated as the most active portfolios in the world. We compared Berkshire…
