Sinewave Securities

Originally what was designated to be an article which eventually got transformed into a small book. It emerged from the wildfire of 2008 GFC where majority of the markets crumbled. Stocks like Lehman Brothers collapsed into bankruptcy after 158 years of growth and success. Fannie Mae and Freddie Mac, crippled, succumbed to government conservatorship. Merrill Lynch, the symbol of bullish America, capitulated to a takeover bid. From “Good to Great” to “How does the Mighty Fall” - Principles in Good to Great were derived primarily from studying specific periods in history when the good-to-great companies showed a substantial transformation into an era of superior performance that lasted fifteen years. The research did not attempt to predict which companies would remain great after their fifteen-year run. Indeed, as this work shows, even the mightiest of companies can self-destruct. Collins uses data and collects a pack of about 11 companies- A&P, Addressograph, Ames Department Sto...

Jim Collins, Stanford graduate, after 5 year long research brings to us Good to Great –Why some companies make the leap and others don’t. Getting inspiration from Bill Meeham’s challenge to picking up 11 amidst 1435 companies, Collins decipher the formula from being good to great in step by step manner. The chapters takes up the case studies from each of 11 selected companies namely Abbott, Circuit City, Fannie Mae, Gillette, Kimberly Clark, Kroger, Nucor, Philip Morris, Pitney Bowes, Walgreens and Wells Fargo. The book lays down everything possible to decipher the greatness out of these selected companies, right from there selection process to performance over last 15 years and a common pattern found among all. Chapter One - Good is the enemy of the Great - This lays down the overview of the book, the purpose, process and pattern found in great companies. It summaries the entire book in less than 15 pages and guides about the concepts or ideas of convergence among great companies...

Pharma sector is a mammoth among the healthcare spectrum with the presence of a number of players from generic to non generic, formulations to APIs, CDMO to CRO, biologics and biosimilars. Each sector has a few players competing among themselves to get a chunk in growing markets. I have tried to cover the basics about healthcare sector in   https://www.sinewavesecurities.com/2022/06/healthcare-mamoth-among-moles.html Do give it a read for the basics.   Here I have taken examples of few companies, study their financials and business model and try to enhance “circle of competence”. DRL -25/25/25 ! Dr. Reddy's Laboratories Ltd is a leading India-based pharamceutical company which offers a portfolio of products and services, including Active Pharmaceutical Ingredients (APIs), Custom Pharmaceutical services (CPS), generics, biosimilars and differentiated formulations. Global Generics Segment (~80% of revenues): This is the main business of the company wherein it off...

A much talked about book on social media, “ The Almanack Of Naval Ravikant: A Guide to Wealth and Happiness ”, collects and organizes the ideas of Naval, an entrepreneur, angel investor, computer science and economics student and brutally honest individual. Collected from tweets, podcasts and blogs - The wisdom of Naval is compiled in the book. I have summarized and condensed the major ideas and quotes from the book. Part 1 Wealth -How to get rich without getting LUCKY? "Getting rich is knowing what to do, with whom to do." Naval suggests : You ought to own equity. All the gains in life come from compound interest. Specific knowledge to be gained -cannot be outscored or automated. Leverage is forced multiplier for your judgment. Capital, Codes and Media - Let them work for you. PRODUCTISE YOURSELF. Play Long term games with long term people - Compounding works - Reputation, Wealth or relationship. Only 1% of the things are useful. Accountability does come wit...

A short, sweet and simple read of less than 150 pages covering the journey of Nicolas Darvas, how back in 1950s he made $ 2000000 from the stock market. It does not give you any secret sauce to succeed but provides the mindset and discipline to become a successful trader. He received the stocks of Brilund after performing in a nightclub and earned a few quick bucks which attracted him towards the stock markets. From thereon he got that fascination and perceived markets as some quick buck printing machine. The book is divided into 10 chapters each showing a significant phase from his trading journey, Chapter 1 covers from being a newbie relying on brokers tip and running behind the “next big thing” to losing a significant portion of his capital. In Chapter 2, how he got to learn some of the basics about the market terminologies, filtering out information, filtering out stocks on the basis of “fundamentals”. He made his own rules after some reading like never follow advisory services...

The One Thing - Gary connects result and approach - From 14 to 7 to 3 to doing the one thing this week - one which makes everything else seem useless - and the results went over the roof. Key to success is not in all the things we do but in the handful of things we do well. I have covered a few key concepts : The Domino effect - Getting extraordinary result is all about creating that domino in your life. Extraordinary success is sequential not simultaneous. It is done overtime. Success leave clues - Gary take up the examples from corporate world - Apple, Google, Disney, Intel and their ONE THING One Passion One Skill. "We are bombarded with more life choices than our ancestors would face in their lifetime." Part 1 THE LIES -That mislead and derail us. Gary busts some common myths popular in the business world. Success has its own lies too and here Garry tells about the 6 lies - Everything matters equally, Multitasking, A disciplined life, Willpower is always on will...

Can’t Hurt Me by David Goggins is a book which describes the journey of a black American boy born in almost broken home, abusive father and a mother who was barely holding the things together into becoming the hardest man God ever created. It comes with the prescriptions to come out of your comfort zone, take the challenges and transform your life. Each chapter covers a part of his journey and comes up with a challenge in the end. Chapter One - I should have been a statistic - Gives an overview of his household conditions and takes up a bold decision to leave his father. David moved to Brazil with his mother. “Those raised in abusive households have an increased probability of being arrested as a juvenile by 53% and their odds of committing a violent crime as adults are increased by 38%.” Rather than being the part of the statistic, David decided to fight, take that pain and move. Chapter Two –Truth Hurts -   David tells the challenges they face in new town. David came up wi...