Welcome to the eighth edition of the brand new newsletter.
The subject of valuation is a little tricky. Not just for the folks who study Finance but also for the non - finance people.
Ashwath Damodaran has done a brilliant job in dissecting the basics in this hour-long talk at Google. Click here to access it.
The Risk-Return Paradox
As I still try to dissect the realms of the Risk - Return paradox, everyday throws a small little surprise.
A lot has to do with the confirmation bias that we hold as individuals. The possibility or the expectation that everything will be fine and nothing can go wrong.
A wrote a little something about the risk-return in investing here.
This week I took some conscious time to go through a few DRHP’s. The interesting thing to note here is all the DRHPs start with the biggest key risks of the business.
Song of the Week
Book of the Week
Can you get 1% better everyday?
James Clear makes it well, clear.
In his book Atomic Habits, James talks about building habits and systems. Instead of setting ambitious targets, one should focus on building systems or processes.
You can access the book here.