The WeekendInvesting Newsletter - 14 Feb 2024

The compounding kicks in the last few years

Many investors focus on maximizing their monthly SIP contributions or chasing high returns, but what truly drives wealth creation in the long run? This article explores the surprising answer: time and compounding.

Using a simple SIP calculator, we analyze different scenarios to reveal the dramatic impact of extending the investment period. Increasing your SIP amount by 100% (from ₹25,000 to ₹50,000) doubles your future portfolio value. However, increasing the investment period by just 20% . . . . .

Reading Time : 4 Minutes

Same sector stocks can behave differently

When analyzing potential investments, focusing solely on industry trends can be a costly mistake. This insightful comparison between Uber and Lyft, two major players in the ridesharing industry, perfectly illustrates this point.

Tale of Two Ridesharing Giants:

Both Uber and Lyft started mid-2020 with similar gains, followed by a steady decline until mid-2022. However, their trajectories diverged dramatically from there. Uber surged, recovering its losses and reaching new highs, while Lyft remained stagnant, plummeting 60% in the same period. . . . . .

Reading Time : 3 Minutes

WeekendInvesting Daily Bytes

Today, on the 14th of February 2024, we witnessed a remarkable resurgence in the Nifty 50. Despite opening with a gap down and an initial test on the downside, Nifty shattered all doubts about recovery, showcasing a phenomenal performance by closing up by approximately 0.45%. From its lowest point today, we saw gains of about 1.4 to 1.5%. The day’s strong green candle, nearly engulfing the previous session’s red candle, signals a robust recovery, recovering 50% of the recent slump and looking strong for the days ahead.

In light of today’s impressive performance, we’ve updated our tracking zones. A key level to watch is around …

Reading Time : 3 Minutes