The WeekendInvesting Newsletter

Another brand new initiative from our Research Desk is The WeekendInvesting Newsletter. This is a daily newsletter that summarizes all the stories we cover during the day(market nuggets), including the daily byte that we shoot every evening. This newsletter will be delivered to your email every evening on market days, providing you with a wealth of market-related information. The newsletter includes both summaries and long-form blogs for all the market nuggets covered. These blogs are also linked to the videos we shoot, so you can choose to watch or read the content according to your preference.

Check out our past newsletters.

From the Research Desk of WeekendInvesting

Strong stocks are a must in the Portfolio

Looking at the market caps of Nvidia, Microsoft, Apple, and the Russell 2000 – All four are currently around $3 trillion. Over the past ten years, Microsoft and Apple have steadily grown from about half a trillion to $3 trillion, a six-fold increase. Meanwhile, the Russell 2000 . . . .

Returns are not so important, duration is !

Over the past 95 years, the S&P 500 has provided valuable data on market returns. This data is not only relevant to the US market but can also be applied to other markets, including India. The key takeaway from this data is the . . .

Robust Financialization in progress

A fascinating infographic from Franklin Templeton shows the remarkable growth in mutual fund assets compared to bank deposits over the past decade. In the last ten years, mutual fund assets under management (AUM) have grown . .

Psychology of Investing : A refresher

Investing is full of ups and downs. Many new investors often find their portfolios looking a lot like a roller coaster ride. Stocks in the portfolio might be going down, while the one stock that was sold skyrockets, and the one that was almost bought also . . . .

China Vs India Debate

The MSCI India and MSCI China indices are followed by many institutions for their investments. These indices create portfolios that numerous institutions then mirror in their investments. The performance of these indices over the past five years shows some interesting trends like . . .

Equal Weight or Market Weight ?

The regular S&P 500 index is weighted by market capitalization, meaning that larger companies have a more significant impact on the index. In contrast, the equal weighted index treats all 500 stocks equally. Over the past two and a half years, the regular S&P 500 index has increased by about 17%, while the equal weighted index has . . .

India to be Global #3 soon!

Recently, we came across an infographic highlighted that India is now the fourth largest stock market in the world, with a market capitalization of around $5 trillion. This is a significant achievement, especially when considering the issues. . . .

Why you should try to beat the Index!

From 1980 to 2014, a study by JP Morgan found that stock selection is crucial. Over these 34 years, they discovered that 40% of stocks lose money, 64% underperform the index, and only 7% account for nearly all the gains. This means that if you pick stocks . . .

It is never too late to switch!

Let’s talk about two friends, A and B. Friend A invested $10,000 in Intel Corporation in 2014. At that time, Intel was the largest chip maker and had a promising future. Fast forward ten years, and Friend A’s investment grew to $13,420. On the other hand, Friend B invested $10,000 in Nvidia instead. Today, Friend B’s investment is worth . . .

Isolating strength is the KEY !

This data given below shows the performance of the top ten stocks in the S&P 500 compared to the rest of the market over nearly 40 years, from 1985 until now. During this period, the top ten stocks have consistently . . .

WeekendInvesting Specials !

Don’t Buy GOLD !

Q1 FY 2025 Review

Markets this week

Nifty gained about 300 points this week, although not as strong as the previous phenomenal week. The market is steadily advancing towards the budget event with confidence. The weekly candle is also up, marking four weeks since the election.

Benchmark Indices & WeekendInvesting Overview

This week, Nifty rose by 1.3%, while the CNX 200 and CNX 500 increased by 1.7% and 1.9% respectively. The Nifty Next 50 saw a 2.7% gain, with mid-small 400 and small caps performing even better at 2.9% and 3.5%. For FY 25 so far, small caps are up 23%, mid caps and the Nifty Next 50 are up 21%, CNX 500 is up 13%, CNX 200 is up 12%, and the Nifty is up 8.9%. This indicates a very healthy first quarter and a strong start to the second quarter.

Mi 20 had an exceptional week, gaining 10.9%, bringing its FY 25 performance to a staggering 41.5%. This strategy continues to outperform it’s benchmark consistently. Mi 35 also performed well with a 7% increase this week. HNI Capital Compounder rose by 6.3%, HNI Wealth Builder by 5.5%, Mi NNF 10 by 5.1%, Mi 25 by 4.7%, and Mi Evergreen by 4.6%, all surpassing their respective benchmarks. Mi India Top 10 gained 1.4%, while Mi ST ATH was up by 1.3%, and Mi ATH 2 remained flat at 0.3%. Among these, Mi 20, HNI Capital Compounder, and Mi NNF 10 have been standout performers for FY 25.

Sectoral Overview

In terms of sector performance, IT is the star of this week. This sector had been languishing at the bottom of our charts for several months and has emerged out of ashes to lead this week’s performance chart clocking 4.3%. PHARMA was another standout performer at 3.7% most importantly breaking out of a medium term range. PSU BANKS have been quite sluggish and it looks like money is flowing into some other sectors and there could be new sectors seeing inflows in the times to come. REALTY and PSEs lead the FY 25 charts with 24% and 21% gains respectively.

Sectoral momentum shows a significant shift, with autos deteriorating rapidly from the 6th position over a month to the 17th position over two weeks. IT has been on an exceptional recent trend occupying the first position across both fortnightly and monthly basis. Real estate, previously at the top over three months, has slipped to 16th position over two weeks. Financial services and banking sectors have emerged as leaders, while energy stocks have surged in the short term. Meanwhile, PSU banks, consumption stocks, real estate, and autos have all taken a backseat. This highlights a dynamic shift in sectoral performance, emphasizing the importance of staying updated with market trends.

WeekendInvesting Strategy Spotlight

How many Multibaggers do you need ?

Mi 20 has been a scintillating strategy right since it’s launch back in July 2021. The strategy is our best performer in the last three years and below chart showcases the distribution of the strategy’s trades since it went live.

The data shows most trades fall within a range of -20% to +30%. The worst-case scenario registered a -37% loss. However, the strategy’s success is driven by a few extreme outliers, with gains ranging from 150% to as high as 444%.

Out of 281 trades conducted over nearly three years, 135 were winners and 146 were losers, resulting in a win rate of less than 50%. Yet, the average gain on winning trades was 35%, while the average loss on losing trades was only 10%. This “casino math” approach, where substantial outliers pull the overall performance, creates a significant alpha over the benchmark.

Rebalance Update

We give advance notice here on the upcoming changes in your smallcase for Monday. This advance notice can be used to ignore Monday’s update if there is no change. If there is a change indicated you can use the smallcase app or log in to weekendinvesting.smallcase.com to see the rebalance. A backup email is sent by mid-day Monday if you have not rebalanced by then and yet another one a

Note: We are not including LIQUIDBEES as an ADD or an EXIT count.

WeekendInvesting Strategies Performance

WeekendInvesting Products – LIVE Index Data

Many of you had asked us to make the index series of all WeekendInvesting Products available so that you could perform your own analysis and studies. You can find a link to the LIVE sheet here and also on the HUB under the support column in the content tab.

WeekendInvesting Telegram and YouTube Channel

We post daily content related to investing on our Weekendinvesting Telegram Channel and YouTube channel to help our community take stock of the performance of markets, sectors & our products and touch base upon a new topic every day. We look forward to having you all there! Several videos in this blog are from this series.

Introducing M Profit

That’s it for this week. See you in the next week’s review