Once again IDFC First Bank is in the news.
Why?
They just released their Q3 business update and here’s what we saw.
100% Growth in CASA! YoY, 18% QoQ
How did they do it?
More importantly, what is CASA and how is it relevant for a bank?
We covered this in brief here and in detail here.
So, did the street take notice of this?
Alpha Swing completes 2 months!
Here’s this week’s FREE Access! - BONUS Content ahead.
We also published our first performance update. Do check it out!
Weekly Updates
This is a mid-weekly summary of bite-sized interesting things happening around in the world. Did you check out this week’s edition?
Webinar Announcement
Bitcoin?
Tesla?
I am finally going to conduct a webinar next week, something I have been working on for quite some time. Partly because there was a delay in coming out with the January schedule.
Are you ready to hear it?
ITC Limited
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Book of the Week
The biggest investment any CEO makes is Capital Allocation.
I just started reading 'The Outsiders' by Thorndike, a book that was recommended very strongly by one of my idols, and what a great way to start the book is the intricate topic of Capital Allocation.
A great CEO has a toolkit that has the following components -
Five Essential choices for deploying capital - reinvestment, acquisition, dividend, debt repayment or share buyback.
Three Alternatives for raising it - internal cash flow, debt or equity.
Capital Allocation is an investment and all CEOs are both capital allocators and investors.
Warren Buffet had an interesting observation on this. He was quoted stating that most CEOs come unprepared for this.
This inexperience has a direct and significant impact on shareholder returns.
Most bosses rise to the top because of their functional excellence in a particular area - marketing, sales, finance, operations etc. And after reaching here, they are expected to make capital allocation decisions - something which is so critical yet they've never done it at a scale which is relevant for the job.
It's like a highly talented musician ending up becoming the chairman of the Fed instead of performing in the Carnegie Hall.
What a fascinating opening.
Check out the book here.
Song of the Week
An old favourite, recently breaking the 1B+ mark.