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Karan Malhotra

Banking Professional

Karan Malhotra

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Karan Malhotra

  • Answers (16)
  • Questions (1)
  • Reviews (15)

Investments

Stocks Discussion

Karan Malhotra
Karan Malhotra
Level 5. Genius
Answered 2w ago
Yahoo Finance - Free, comprehensive information on instruments, and let's you change the currency you view it in, create multiple sub portfolios and shows payout info. Folks have recommended stocks cafe which is decent but the free tier only allows a fixed number of holdings beyond which the fee is 39/year

FSM INVEST EXPO 2020

Stocks Discussion

Karan Malhotra
Karan Malhotra
Level 5. Genius
Answered 2w ago
I think this is also a question of scale. You can offer 0.03% if u manage 7 trillion USD of assets, but SG being quite small, funds not be able to gather enough assets to lower the fees to an equivalent amount. At the end of the day, expenses for the fund company need to be paid. For example, even an AUM of 1 billion SGD, only generates 300,000 SGD of revenue at 0.03%. But 1.5% generates just enough to pay the expenses and turn a small profit

Stocks Discussion

Investments

Karan Malhotra
Karan Malhotra
Level 5. Genius
Answered 2w ago
So I love Peter Lynch's definition of P/E - To quote Lynch in full: The P/E ratio of any company that's fairly priced will equal its growth rate...If the P/E of Coca-Cola is 15, you'd expect the company to be growing at about 15 percent a year, etc. But if the P/E ratio is less than the growth rate, you may have found yourself a bargain. A company, say, with a growth rate of 12 percent a year...and a P/E ratio of 6 is a very attractive prospect. On the other hand, a company with a growth rate of 6 percent a year and a P/E ratio of 12 is an unattractive prospect and headed for a comedown...In general, a P/E ratio that's half the growth rate is very positive, and one that's twice the growth rate is very negative. Another way of looking at this is - The time it takes you to get your money back. For e.g. a P/E of 10 means that if you invest 1 dollar for 10 dollars of earnings and hence, at the company's current rate of growth A (approx. 10%), you'll get that back in about 10 years ( 1 dollar/year for 10 years since it grows at 10%). So either the company can grow faster and generates more earnings to return to shareholders, or slower, in which case you may have overpaid. For context, Amazon at 83 P/E reflects the fact that while it may take 83 years to get your money back, if you believe that amazon will grow even faster in the future (somehow faster than 83%!), it will generate significantly more earnings that it may 1 day give back to you in the form of dividend/buyback. Hope that helps

FSM INVEST EXPO 2020

Stocks Discussion

FSM One

Karan Malhotra
Karan Malhotra
Level 5. Genius
Answered 2w ago
Honestly this depends, most of the answers listed here seem to indicate cash flow but while that's a decent snapshot of the current business, fundamental analysis may also include understanding the company's ability to generate this in the future. Buffet calls these "moats" and are discussed in depth in the Little Book That Builds Wealth by Pat dorsey. So understanding the importance of competitive advantage, debt and Return on Invested Capital are all sound levers to consider, but ultimately follow the approach that suits you best

FIRE Movement

Investments

Education

Stocks Discussion

Karan Malhotra
Karan Malhotra
Level 5. Genius
Answered 2w ago
If there's only 1 book I could offer you, it would be Jack Bogle's Common Sense on Mutual Funds where he explains the virtues of low cost indexing as much as possible and keeping things simple. Would recommend that as a start point and take it from there. I would also advise against deploying it at 1 shot as for a first time investor it can be scary to invest and immediately watch the market fall which could trigger you into panic selling. Proceed with caution

FSM INVEST EXPO 2020

Stocks Discussion

Karan Malhotra
Karan Malhotra
Level 5. Genius
Answered 2w ago
I think what you've put your finger on is valid and they essentially represent an outdated business model which are likely to reduce over time as the dispersion in fees is not justified by the "advice" usually

Stocks Discussion

FSM INVEST EXPO 2020

FSMOne Fundsupermart

S&P 500 Index

Karan Malhotra
Karan Malhotra
Level 5. Genius
Answered 2w ago
Honestly, given these ETFs are practically free (expense ratio - securities lending etc.) as well as highly liquid with low bid-ask spreads, it doesn't really matter which one you go with unless you prefer to go with a specific fund provider. That said, IVV and VOO are the absolute cheapest so for pure play exposure, those might be best

Investments

REITs

Stocks Discussion

FSM INVEST EXPO 2020

Karan Malhotra
Karan Malhotra
Level 5. Genius
Answered 2w ago
So if you've done the hard work of evaluating the quality of the REIT (properties, financials, management track record etc.) and are looking at entry price, I tend to favor a combination of Price to NAV (low) and dividend yield (high) usually, tracing this back over the last 5 to 10 years (where applicable) will give you a good indication of how cheaply the REIT is trading compared to it's historical performance. This has served me well personally

Investments

Karan Malhotra
Karan Malhotra
Level 5. Genius
Updated on 23 Nov 2019
It's important to remember that hedge funds are not an asset class but a catch-all term for different strategies (Equity long-shorts, long only, fixed income, managed futures, merger arb etc.) Is there a specific hedge fund you're looking to invest in? Presumably there is a specific exposure you're looking for which is non-correlated to your existing holdings (hence the "hedge"). In that case, it's best to check if the hedge fund is open to non-accredited investors. My understanding is that this is rare since these are considered sophisticated financial constructs and not readily available to retail investors but you should be able to find out once you identify a hedge fund you'd like to get exposure to. That said, be wary of fees as these services do not come cheap

Investments

Karan Malhotra
Karan Malhotra
Level 5. Genius
Answered on 23 Nov 2019
1 word - 1999. Another word - 2009. Buffet and Munger are among the great capital allocators of our times, so even if you may not agree with their approach, it's very much valuable to follow them and the way they think about deploying all that cash eventually.
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