Sinewave Securities

This is part two of the series in which I have tried to combine and sort them topicwise. Black Sholes The Black-Scholes formula has approached the status of holy writ in finance, and is used when valuing equity put options for financial statement purposes. Key inputs to the calculation include a  contract’s maturity and strike price, as well as the analyst’s expectations for volatility, interest rates and dividends. If the formula is applied to extended time periods, however, it can produce absurd results. In fairness, Black and Scholes almost certainly understood this point well.

Few case studies and concepts by Buffett given through the newsletters are compiled topic wise. It combines Buffett’s magic and mind, simplicity and subtleness which results into extraordinary results overtime past 60 years has been provided in these newsletters year after year. The idea of ”praise specifically criticize generally” can be seen over the years in these letters over the years.

 𝗔 𝗖𝗼𝗻𝘃𝗲𝗿𝘀𝗮𝘁𝗶𝗼𝗻 𝘄𝗶𝘁𝗵 𝗖𝗵𝗿𝗶𝘀 𝗠𝗮𝘆𝗲𝗿 –Moderated by prof. Sanjay Bakshi. He talks about focusing illusion –whatever you are looking or thinking at the time has outsize support in your mind comes. Prof. Bakshi brings up a few questions from Chris Mayer’s book 100 Baggers.

CFA India Society’s  YouTube channel is one of the most underrated source to widen your knowledge spectrum. I have tried to pick a few episodes and summarize them. I have also added the ideas from the latest interviews of the delegated person from a few episodes. Howard Marks Howard Marks of Oaktree Capital Management –CFA charter holder and one of the most renowned investors. Oaktree Capital Management is an American global asset management firm specializing in alternative investment strategies. Oaktree emphasizes an opportunistic, value-oriented, and risk-controlled approach to investments in distressed debt, corporate debt (including high yield debt and senior loans), control investing, convertible securities, real estate and listed equities. Throwing the light upon 2008 GFC, Howard gives his view about broader markets, bitcoin, central bank bailouts and a lot more. I have tried to summarize two episodes –The Truth about Investing and Something of Value. Buy at any Pr...

Another book by Professor Jim Collins after Built to last, Good to Great and How does the Mighty Fall, Great by Choice showing - Why do some companies thrive in uncertainty, even chaos, and others do not? The method is similar (comparative historical analysis) and the question of greatness is constant. But in this study, unlike any of the previous research,  Collins selected cases not just on performance or stature but also on the extremity of the environment i.e. PERFORMANCE + ENVIRONMENT Starting from delving into what he learned about the individual people who led these companies, and in, how they led and built their companies differently from their less successful comparisons to studying luck. Collins defined luck, quantified luck, determined if the 10X cases were luckier (or not), and discovered what they do differently about luck. At the end of the book, the detailed methods of research, quantitative and qualitative parameters based on each type of analysis (10x, 20 Mil...