The WeekendInvesting Newsletter - 20 Feb 2024

Strategy Spotlights

2024 has witnessed an interesting phenomenon: the Mi India Top 10 strategy, a rotational momentum strategy based on Nifty 50 index, is significantly exceeding expectations. While Nifty remains flat at 1%, the strategy boasts a 14% gain in just two months. What’s the secret behind this outperformance?

• Concentration vs. Diversification

• Consistent Outperformance

• The Power of Selection

• Finding Top Performers

Mi India Top 10 serves as a powerful example of how actively managed strategies can leverage stock selection to outperform passive benchmarks. Remember, diversification and expert analysis can be your allies in navigating the market and potentially achieving superior returns. So, don’t settle for average – actively seek out strategies that have a proven track record of beating the benchmark and putting you in the top 20% of investors.

Happy with Gains made or Sad with Gains lost ?

In the fast-paced world of investing, where every stock seems to have its moment in the limelight, Bajaj Auto has quietly climbed the charts under the radar. But why is this two-wheeler giant, steadily rising from ₹4,000 to nearly ₹8,400 in less than a year, going unnoticed?

The answer lies in its smooth, unassuming ascent. Unlike companies fueled by hype or short-term events, Bajaj Auto’s growth rests on solid sustainable performance. This lack of drama, while a boon for long-term investors, often leaves the stock overlooked by those seeking the “next big thing.”

But here’s the key takeaway. . . .

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WeekendInvesting Daily Bytes

Today, the Nifty attempted to break out of a triple-top formation observed in the previous session. Although there was a brief breakout, we eventually returned to the specific range, closing above it at approximately 22,200. This suggests a potential upward movement after seven weeks of consolidation since the year’s start, with no significant downside pressure yet.

Market tops, filled with euphoria, are unpredictable, as evidenced by the 2003 to 2008 bull run, which had many false peaks before the actual peak in January 2008.

Over my nearly 29 years in the market, the importance of . . .

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