Introducing “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

Can taxes eat into your compounding ?

In this article, we discussed the power of compounding and how it can be affected by taxes and inflation

Gold Hedge is a must during market recessions

Gold has long been considered a safe-haven asset and a store of value during times of economic uncertainty. In this article, we discussed the performance of gold during recessions and its role as a hedge in investment portfolios.

The Magic of Momentum laid Bare !

In this article, we try to walk you through the magic of momentum investing using a real-life example of a strategy that has been successfully implemented for over seven years. 

The secret of Weekendinvestings Growth Story !

Have you ever felt overwhelmed by the idea of making drastic changes in your life? The prospect of completely transforming our habits or tasks can seem daunting and even discouraging. However, what if I told you that making small, incremental changes can actually lead to significant results over time? It may sound too good to be true, but the concept of compounding improvement is a powerful one. In this article, we explore how incremental changes can lead to remarkable outcomes and share some practical examples of its impact.

How have WI strategies done in the same time period ? How to use the comparative tool?

We talked about how some WeekendInvesting strategies performed in the recent past and also showcased our analytics that can be used by investors to gather performance related insights.

Market Learnings from the movie “12th Fail”

In this article we discussed the learnings from an interesting and inspirational movie called “12th Fail.” This movie tells the story of a person striving to become an IPS officer despite facing numerous challenges and setbacks. It resonated with me and taught valuable lessons that can be applied not only in our personal lives but also in the world of investing

How does market behave in an Election year

As an investor, it is crucial to understand the various factors that can influence the stock market. One such factor is elections. Elections can have a significant impact on the performance of the stock market. In this article, we explore the historical performance of the Indian stock market, specifically the Nifty index, around election times.

How much time to double/triple your capital ?

Indian equities have been offering lucrative growth potential to investors, with significant returns observed over the years. In this article, we delve into the data provided by Funds India Research, which outlines the growth trajectory of Indian equities, particularly in mutual funds.

What is your market benchmark ?

In the world of finance and investing, benchmarking is a crucial tool for evaluating performance. It allows investors to compare the returns of their investments to a particular index or benchmark. The most commonly used benchmark in India is the Nifty 50, which includes the top 50 companies listed on the National Stock Exchange. However, there is another benchmark that might surprise you with its outperformance over the years – the Nifty Junior.

The BEST way to pick stocks

In a recent post, Charlie Bilello shared data on the best performing stocks in the S&P 500 universe over the past three decades. The purpose of this data is to highlight the fact that most discretionary investors are unable to study and analyse all 500 stocks in the index. As individual investors, we are often limited to the stocks we know, have heard of, or those that have been recommended to us. This limited universe of stock selection may cause us to miss out on potential winners that are not widely known or discussed in the media.

Markets this week

Nifty experienced a crash following the unexpected underperformance of HDFC Bank’s results, leading to a loss of over one lakh crores in market cap. However, there was a reasonable pullback in the larger markets on Thursday and Friday, mitigating the damage for the week. Despite the volatility, I believe the market will continue to march strongly towards 25,000 this year. 

Benchmark Indices & WeekendInvesting Overview

While benchmark indices remained flat or down, several of our weekend investing strategies showed strong performance. Mi 20 strategy gained 4.5% for the week and an impressive 117% for the financial year. MI Evergreen was up 3.6% for the week and 61% for the financial year. Similarly, Mi 35 saw a 3.3% gain for the week and a remarkable 96.9% gain for the financial year. Mi ST ATH also showed substantial growth, up by 2.6% and 41.5% for the week and financial year, respectively. Additionally, Mi MT Allcap demonstrated a 2% increase and an impressive 78.6% gain for the financial year.

This week & the FY 24 performance also serve as a classic example of absolute outperformance of the strategies compared to the benchmarks.

Sectoral Overview

Taking a closer look at the sectoral performance, we observed some interesting trends. Public sector enterprise stocks experienced a significant increase of 2.9%, while IT stocks made a comeback with a 1.5% gain. PSU banks also showed improvement, with a 1.4% increase. In contrast, private banks, led by HDFC Bank, saw a decline of 4.5%. Metals and real estate also took a backseat, with a decline of 1.4% and 1.2% respectively. Despite short-term fluctuations, real estate has witnessed a phenomenal 124.2% growth for the financial year.

Real Estate holds on to the top spot after a consistent performance while we have Energy come up at #2 position. PSE has dropped to #7 on the fortnightly chart after putting up a relatively weaker performance while the spotlight was grabbed by IT which raked in #1 position after an impressive relative outperformance amidst overall market weakness.

Spotlight – Mi India Top 10

One of our standout strategies is the Mi India Top 10, which focuses on extracting the best from the Nifty 50 stocks. This strategy aims to concentrate on the strongest stocks within the Nifty, rather than wasting time on stocks that are not moving up.

This strategy has clocked a superb 43% in FY 24 compared to only 24% on the Nifty 50 index.

We have a special LIVE QnA session with Team Smallcase on 25th Jan 2024 (Wednesday) at 7 pm where we shall dive deep into this outperformance with real case studies.

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 day later.

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