By Tim Gray David Giroux, manager of the T. Rowe Price Capital Appreciation Fund, said buying $8.7 billion worth of stock in March, when the stock market was plummeting, was like preparing for a colonoscopy. “It’s very unpleasant, but you know it’s the right thing to do.” Giroux’s pandemic shopping spree significantly repositioned his $38.2 billion mutual fund, which invests in stocks, bonds and other securities, moving it to 72% stock from 53%. Giroux bought $5.7 billion in stock for the fund, and about $3 billion for institutional accounts that mirror it. His buying entailed bets on beaten-down companies, including Marriott International. “We were buying it all the way down,” he said. By the time the market bottomed in late March, Marriott’s stock price had dropped 70%. It may not be clear for months or years whether all of Giroux’s moves pay off. But his account of the market’s slide this year provides a glimpse into … [Read more...] about What was it like to buy $8.7 billion worth of stocks in March? A fund manager explains
Stocks that pay high dividends
By DK Aggarwal Volatility in recent months has tested market participants’ patience. When market conditions are erratic, the systematic investing plan (SIP) mode of investing is highly recommended. Like a mutual fund SIP, direct equity investors also can use the ESIP (equity SIP) route to invest small amounts in stocks at regular intervals, thereby taking advantage of the unpredictable stock price movements. This mode can help avoid timing the market, invest through a disciplined approach and protect oneself during volatile times. Most online trading platforms offer SIP facilities in direct equities and allow investors to fix either the amount to be invested or the number of shares to be purchased at pre-defined intervals for a fixed tenure. Without doubt, higher risk offers higher returns in financial markets. Like a mutual fund SIP, investors should choose to invest at varying frequencies. The online system automatically executes the transaction on the date as defined by the … [Read more...] about Is it wise to use the SIP process for direct stock investment?
Mumbai: Adhesives maker Pidilite Industries has been a multibagger of last decade, churning out more than 1,100 per cent gains. The rally has hit a roadblock as the coronavirus lockdown brought construction and allied activities to a grinding halt. Some analysts see an opportunity to pick the stock at current valuations, but others say uncertainty over the time required for normalcy to return in this space may keep the price depressed for long. The stock delivered 1,133 per cent gains in last 10 years, 157 per cent over last 5 and 71 per cent in last 3. It traded at Rs 1,404 in an upbeat market on Monday. Yet, the stock is down more than 17 per cent from its 52-week high of Rs 1,709. “The stock will see underperformance in the short term because of earnings and Covid-19 blip. We should see it come back to action after two quarters. People will defer construction/interior work for now, but that should resume later,” said independent analyst Ambareesh Baliga. “It … [Read more...] about This multibagger stock has analysts divided on future outlook despite deep price correction
In 2018, Amazon paid just £63million in business rates on reported sales of £10.9billion in Britain. In contrast, Marks & Spencer pays about £184million in rates on annual sales of £10.7billion, while Tesco pays £700million on sales of £63.9billion. … [Read more...] about Calls to end tax imbalance between wealthy web giants and battered British high streets
He says: “We’ve received a 22-page document from the National Hairdressers’ Federation with all the stuff we have to adhere to. We can’t see as many people at one time and can’t have as many stylists in the shop at one time. … [Read more...] about How high street shops are preparing to reopen and adjust to ‘new normal’