Does Value Investing Work in India?

Beginning as early as 1977, there have been academic studies comparing value stocks vs. glamour/growth stocks. A seminal work in this area is "Contrarian Investment, Extrapolation and Risk", written by Josef Lakonishok, Andrei Shleifer and Robert Vishny and was published in 1994 in the Journal of Finance. Lakonishok, Shleifer and Vishny (LSV, for short) found that from 1968 to 1994 value stocks outperformed glamour stocks by a wide margin based on US data. Now you might be asking what does this have to do with Indian equities and value investing? Fortunately, the Brandes Institute used the LSV framework to analyze emerging markets in a paper titled "Value Investing: Has it Worked in Emerging Markets?". You can download the paper for free from the Social Science Research Network (SSRN).

They essentially categorized all stocks residing in emerging markets as defined by MSCI into deciles based on Price to Book Value (P/B) ratios and tracked stock performance using data from June 30, 1980 to June 30, 2007. First, India is categorized as an emerging market by MSCI and thus Indian stocks were included in the study. Second, deciles simply means that the universe of stocks used in the study were split into ten segments based on their P/B ratio. Stocks with the lowest P/B ratios or "value" stocks were placed in the higher deciles and those with the higher P/B ratios were categorized in the lower deciles. The cheapest stocks or those with the lowest P/B ratios would be placed in decile 10 and the most expensive stocks or those with the highest P/B ratios would be placed in decile 1.

Once the stocks were categorized, Brandes tracked their performance over a 5 year period from June 30, 1980 through June 30, 2007. The results were quite simply amazing. The researchers found that decile 10 or value stocks produced on average 5-year annualized returns of 19.6% vs. 2.6% for decile 1 glamour stocks. Value stocks had an annualized premium of 17% relative to glamour stocks. Basically, you could expect the cheapest value stocks to return 17 percentage points more than the most expensive glamour stocks on an annual basis. If you're not amazed by these results, you either have access to a currency printing press (e.g. a central banker) or you have too much money to worry about compounding. I'm in neither category so I'm seriously amazed.

However, I'm not surprised because Joel Greenblatt also found in The Little Book that Still Beats the Market that over a 17 year period if you owned a portfolio of 30 stocks with the highest combination of earnings yield and return on capital you would have achieved an annual return of 23.7%. During that same period the average market return was 12.4% per year. It's clear based on a variety of studies that even simplistic mechanical valuation based models produce some pretty amazing results.

So, you might be asking what is the catch? Yes, you're right there are a few complications. The main problem is that although returns for value portfolios are excellent over long periods of time in the short-run you can drastically underperform the market. Thus, it's difficult to maintain your investing discipline when markets are raging and you're underperforming or vice versa when markets are crashing and you feel like pulling your money out at exactly the wrong time. The key to success is staying disciplined and sticking to a value based strategy through market cycles.

Finally, if you think the results in the Brandes study were to broad based to be applicable solely to the Indian market, I also analyzed the 5-year average return for the MSCI India Value Index vs. the MSCI India Growth Index. The 5-year average annualized return for the MSCI India Value Index was 8.6% vs. 1.9% for the MSCI India Growth Index as of March 12, 2012. If the MSCI index data doesn't convince you about the benefits of following a value investing based investment strategy in the Indian market then I'm not sure what will.

How to Draft a Father's Rights Will to Make it Legal and Binding

Many people don't consider constructing a will until they are older, looking to retire, or when medical circumstances arise that makes them consider how much time they have left on this earth. But it's important when you're a father to make a will when you are fully capable, to avoid situations that may result in your ex-wife getting more than she was intended to out of your sudden death.

Although you may want certain things to go to certain people when you pass away, unless you have a legally binding will through the courts, your heartfelt designation of property will mean nothing if brought to question by an ex-wife or someone else of beneficial interest. But it is a common misconception that you must have an attorney construct this will for you-anyone can write and file a will, making it legal, without the help of a lawyer or attorney to "make it legal."

Typically, in order for a will to be handled and defined as "legal," the will must be created when you are of "sound mind," meaning you were thinking straight and situations didn't lead you to create the will out of distress. It must also state that it is the intended document to distribute your property and assets after your death. If types, your will must be signed by you and two other witnesses that attest that you were of "sound mind" as well. This way, there is no question by the courts that you meant for this will to be prepared and that you honestly want your assets dispersed in the way formatted in your will. If for some reason the will is thrown out through court, the courts will handle the property and assets as if there were no will to start.

If, down the road, you decide to make some changes (for example, if you want to change the beneficiary from your children to your new wife), you can make a codicil, or an amendment, to the existing will. But if there are numerous changes that need to be made, you might be better off starting all over again and making a new will, being sure to destroy the old one to avoid confusion that may occur with two legally-binding wills.

A Checklist for Packing Your Luggage for a Business Trip

It never fails that when my adult son travels with me he forgets something. Because of this I always pack an extra tube of toothpaste just knowing that he will show up at my hotel door to see if he could borrow some of mine.

Airlines are becoming more restrictive about the weight and number of bags that you can bring with you so it is important not to over-pack. At the same time, however, you really want to make sure that you have the basics so you won't have to waste time shopping for necessary items.

Perhaps you might find it easier to print a list of the things you usually take with you when you do your business travel rather than try to remember everything before each trip. You can store the list in your suitcase so you have it ready when you begin the packing. Following is an example of what your list might look like:

1. Toothpaste, brush and floss

2. Deodorant and scent

3. Makeup/Shaving toiletries

4. Brush or comb and hair products

5. Medications

6. Plastic bag (for dirty laundry)

7. Socks and underwear (one set for each day of the trip)

8. Miniature sewing kit

9. Swimming suit, coverup, pool shoes, hat, suntan lotion and sunglasses (optional)

10. Coordinated clothing that you can mix and match (both business and casual)

11. Sleepwear/Light Housecoat

12. Chords for cellphone and laptop

13. Extra business cards/brochures

14. Reading material/book

15. Seasonal coat or wrap

16. Shoes inserted into plastic bags (to protect the clothing from dirt)

17. Carry on bag with flight, hotel and workshop/meeting information, writing paper, highlighters, post-it notes, phone and laptop

18 Passport and airline tickets

You can add or customize the list for your own needs and revise it as necessary.

When you pack the bag it is best to roll each clothing item rather than fold them as you will not have as many wrinkles that way. Put the more fragile items in between layers of clothing so they will be cushioned.

Don't fill the suitcase. You need to pack so that you have room to add any items you might purchase or workshop binders for the trip home.

Even if you have the perfect list you might accidentally forget something. Don't worry. Reception desks in hotels usually keep a supply or items that they will give you without charge. Always check with them before heading to the store.

And don't forget to check in at the hotel's gift shop where you will be able to purchase a wide variety of items without having to go too far.

Guitar Scale Mastery Review

The cost of this product is a wee bit higher. The seriousness and passion the creator, Craig, has is reflected in making sure that his student understand fully the concept of scaling, and eliminate the myths about playing the guitar- and turning into a rock star. The cost of this product is higher as compared to the competitor, and the method this is being taught is a little unconventional by teaching it by One-string Scale, Two String Scale.. Ear Training.. and then finally applying all. This may get the student a little bored and lose motivation along the way, since the end result is, well at the end only. This explains why its mentioned that, this product is only for those who are truly interested in mastering the skills, rather than merely knowing how to play the guitar.

Full Product Review

First of all, let's clear the air.  This guitar program is not about practicing endlessly but aimed to improve your fingering. It is a technique to learn to play music and not merely going up and down your fingers on the fret board. Though many guitarists are seemingly good, they do not fully understand the concept of how to "play music" proficiently. The only effective way to play a solo piece is to be able to master these guitar scales.  Hence, making this guitar program very effective.

A little intro about the creator Craig Bassett, before we move on, is that he is an accomplished musician and teacher. He has been in the music scene for 28 years, and plays the guitar for 18 years. Having gone to Massey University (Wellington - New Zealand),  Craig received Bachelor's Degree in Music Performance. With that, as well as his experience in teaching at multiple institutions like high schools, music centers, private sessions.

Firstly we have to identify that what stops people from playing scales effectively is because of too many choices. There are tonnes and tonnes of methods and you will probably not be able to learn ALL of it in a lifetime. So what Guitar Scale Mastery is about, is to sieve through some of the difficulties by giving you one of the most effective scales to guide you to boost up your abilities.  Of course, throughout the course you can use your creativity and personal styles and integrate it into your scales. You'd be surprised at what your capable of at the end of this program!

Guitar scale mastery uses a holistic approach by igniting your senses. It trains you to use your ears to follow the scales that you are playing through sounds, your eyes to visualize your fingering on the fretboard and lastly your intellect by ensuring you understand the principles and concepts behind the scales that you play.

Guitar Scale Mastery is more serious about you getting it right rather than merely focusing on having fun like its competitors. Yes its important to have fun whilst learning, but Guitar Scale Mastery believes that learning how to play can be less frustrating if your able to maximize your abilities. Guitar Scale Mastery will guide you throughout the necessary steps and make sure that you not only able to learn the scales, but also use them practically.

The Flinders Ranges - An Accessible Australian Outback Destination

The Flinders Ranges are one of South Australia's most popular outback tour destinations, and are world-renowned for their rugged mountain landscapes, spectacular gorges, sheltered sandy creeks lined with majestic River Red Gums, and their abundant flora and fauna. An authentic Australia outback destination, the Flinders Ranges are nevertheless easily accessible from the South Australian capital of Adelaide.

The Flinders Ranges are a perfect location in which to witness and marvel at nature on a grand scale. Home to magnificent, rugged and uncompromising landscapes, they are truly a destination where you can get away from it all. Though they seem a million miles from the hustle and bustle of city life, the southern areas of the ranges begin only 220 kilometres from Adelaide. Wilpena Pound is around 450 kilometres (five hours drive) from Adelaide. Many different routes are available to explore the Flinders ranges, and all offer excellent scenery. To fully appreciate the area, a few days at least are necessary. For those without transport there are several tours operating from Adelaide.

The Flinders Ranges National Park is situated between the outback South Australian towns of Hawker and Blinman. Covering over 950 square kilometres, the park is about 450 kilometres north of Adelaide and offers a broad range of outdoor activities for all ages and tastes including camping, bushwalking, scenic touring, photography, birdwatching and Aboriginal and European tour activities exploring the history and cultures of the region.

The Flinders Ranges join the Gulf of St Vincent to the South Australian outback. The landscape of the region is truly spectacular, particularly in spring when wildflowers are blooming and carpet the countryside. Bush walking is a popular and rewarding activity in the ranges, including walks around the Arkaroola Mt Painter Wildlife Sanctuary, the Heysen Trail, Mt Remarkable National Park and Wilpena Pound.

The indigenous Adnyamathanha people have lived in the region for many tens of thousands of years, and the ranges remain of enormous cultural significance to them. Adnyamathanha (hills or rock people) is a term now used to describe the Pangkala, Pilatapa, Yadliaura, Kuyani and Wailpi peoples, the traditional indigenous owners of the Flinders Ranges. These groups share a common identity based on the Yura Muda, the culture and language of their ancestors. While European geologists explain the formation of the Flinders Ranges in scientific terms, the Adnyamathanha understand the landscape through the Yura Muda dreamtime stories, which invest the physical landscape with spiritual significance.

The Flinders Ranges are full of sites testifying to the rich cultural heritage of the Adnyamathanha people, including cave paintings, stone arrangements, graves and ochre quarries. Cave paintings and rock engravings can be viewed at Sacred Canyon and Arkaroo Rock in the Flinders Ranges National Park. The Adnyamathanha people ask that visitors respect their culture by refraining from touching, damaging or removing items at these sites.

European settlers moved into the Flinders Ranges in the 1840s, changing the traditional lifestyle of Adnyamathanha people forever. Many continue to live and work in the area today, with the towns of Nepabunna, Leigh Creek and Port Augusta being their main centres. Family and employment responsibilities enable the Adnyamathanha to maintain links with their traditional country. Some work in rural enterprises such as cattle stations while others work in tourism and as park staff. To learn more about Admyamathanha culture, enquire at the Wilpena Visitor Centre and other information centres about local Adnyamathanha cultural tour operators.

The Flinders Ranges appear are mentioned in the journals and diaries of many Australian explorers. Matthew Flinders explored the upper reaches of Spencer Gulf in 1802. Sturt and Eyre traversed the area during their journeys north in search of an inland sea. Pastoral runs were established at Arkaba, Wilpena, Aroona and Oraparinna from 1851. By 1863, European settlement extended far beyond the ranges, and copper mining was booming in the region. No rain fell in the area from 1864 to 1866, when the saltbush plains were stripped bare and huge losses among both stock and native fauna occurred. Many pastoral runs were deserted and mining virtually ceased. The deserted runs were gradually reoccupied and stocking rates reduced. Today, the pastoral industry remains viable with greatly improved practices and sustainable stocking rates.

Basics of Medical Bankruptcy

Have you heard of the medical bankruptcy? Well, you might think that this is all about being insolvent due to medical issues alone, and filing a 'medical bankruptcy' because of it. I cannot blame you for thinking that way because I also had the same first thought. It is a help for everybody, therefore it is a must that you have at least the basic knowledge about it. To help you be informed about this topic, here is some of the basic information regarding it.

Medical bankruptcy is a general term used to refer to the reason why a people need to file a bankruptcy. Actually, this is not a legal term. According to the its rules, if you are to file a medical bankruptcy, you need to either file Chapter 7 Bankruptcy or Chapter 13 Bankruptcy. In this filing, you need to comprise all your debts including all your medical debts and other unsecured loans. After some examination and it is proven that you are insolvent, they will free you from all your debts and will be declared into bankruptcy. When you file for a certain bankruptcy, you are required to list down all of your creditors, including your medical bills. This only clear up that 'medical bankruptcy' is not all about your medical debts.

Based on the statistics, provided by an article in CNN, medical debts is one of the basic reasons why people file bankruptcy. As a matter of fact, about 60% of the filed bankruptcy is due to medical issues. And almost all of these 60% are the single mothers and elderly.

Having health care insurance is not insurance at all. According to some medical bankruptcy statistics, almost 80% of the bankruptcy filers have insurance. This may be due to the fact that, even people have health insurance, they still bear most of the payments for the bills which forces them to file for bankruptcy.

Some of the people think that when you file a bankruptcy, doctors can refuse to cure you. Well, according to the federal law, those hospitals receiving subsidy from the government do not have the right to refuse from accepting a patient who had filed a bankruptcy. More often than not, the doctor and the patient are making agreement on the amount that the patient can afford to pay the doctor even he had suffered from bankruptcy.

Medical Bankruptcy is available for all who needs and who seeks for financial help. But I am advising you that filing it must be your last resort. This is not just a simple way for you to escape from your creditors and debts. It must be filed if you really do not have a choice and you can't really answer for your obligations.

It is undeniable that only a few really had the knowledge about this fact. As a matter of fact, this is a right of all individuals; therefore you must have the knowledge about it. In all cases of life situation, being well informed is one of the basic keys in giving solutions to the problem you thought will never be solved forever. The facts that I have presented are just the basics, if you wanted to have a full grasp about medical bankruptcy, research and be informed!