52 episodes

Capitalmind looks at stocks, bonds, funds and the macro to bring you their view on the Indian financial markets. We discuss all things related to investing at our focussed podcast that keeps it simple. For more, go to capitalmind.in and to invest with us, visit capitalmindwealth.com

Capitalmind Podcast Capitalmind

    • Business
    • 4.8 • 74 Ratings

Capitalmind looks at stocks, bonds, funds and the macro to bring you their view on the Indian financial markets. We discuss all things related to investing at our focussed podcast that keeps it simple. For more, go to capitalmind.in and to invest with us, visit capitalmindwealth.com

    Why the crypto crash impacts you?

    Why the crypto crash impacts you?

    Crytocurrencies were all the rage in past few years on account of rising asset prices and volatility. Now, they are going through a bear market that has witnessed some popular currencies going totally bust. This pehnomemnon of an "asset class" going from hot to untouchable is not new. We've seen this again and again in different forms and proportions. 
    The current bear market in cryptos certainly impacts the investors, start-ups, promoters, and VCs who are directly involved in the crypto business. But, this bear market has second-order effects that may impact you as well. Listen in, as Deepak and Shray discuss the nuances of how the crpto bear market inpacts you. 
    Show notes & references:
    01:40 -How does the crypto bear market have an impact on stock markets & economy?
    08:30 - The indirect knockdown effects of crypto bear markets
    10:00 - Digging deeper which other segments of the economy will face a slowdown due to crypto?
    15:30 - The trickling effect of hot money going away from crypto startups
    16:30 - Misunderstanding of risk by crypto investors
    20:30 - The debacle of fancy virtual assets - Luna & Terra
    Refer: Terra's stablecoin UST collapses, LUNA falls 99%
    24:50 - Learnings from Zee TV & Dish TV saga of taking loans from Mutual Funds via bonds
    Refer - Capitalmind post on Zee FMP Saga
    34:00 - New investors moving to crypto with leverage and family savings basis TV marketing
    39:00 - Why VCs don’t let failed crypto companies die? - No, it's not for the right reasons.
    48:00 - By Now Pay Later - bad small loans of small ticket size are a similar problem.
    50:00 - Promotor fraud is now called Rug Pull.
    Refer - What is a rug pull? 
    51:30 - The case for printing more money
    54:30 - The commingling problem that stock exchanges have already solved. Crypto exchanges still fight that problem.
    Refer: Deepak Shenoy tweets about these issues in Dec 2021
    56:40 - Will Deepak one day invest in crypto someday in the future?
    58:30 - One great thing that has come out of crypto markets
    If you loved listening to Deepak talk about money and finance. You'll also find his book quite interesting - You can buy the book here – Money Wise.

    • 1 hr 2 min
    Is it a good time to invest in gold?

    Is it a good time to invest in gold?

    In this episode, Deepak and Shray unravel different aspects related to investing in gold. 
    Gold has been around as a store of value for a couple of millennia, probably longer, because of how little there is and how difficult it is to get out of the earth.
    Now get this - all the Gold mined would fit in a crate with sides of 21 meters. That’s roughly the length of three and a half standard containers.
    Yet, in the last decade, this scarce and loved asset class has done just enough to match inflation. This means, adjusted for inflation, gold has returned nothing!
    Now, after putting returns of gold into perspective, we get on to the theme of our podcast - Does it make sense to invest in Gold?
    We look at gold from different lenses while we determine -
    If gold is a hedge against inflation? Can gold protect you in a crisis like war? Is gold investment to create long-term wealth? Is there an efficient way to invest in gold? Show notes and references:
    01:30 - Is gold the safe heaven when everything else falters?
    05:00 - Today all assets classes act alike and correlated
    Refer - How Gold has performed over years?
    08:00 - Gold hasn’t outperformed inflation in 2011!
    12:30 - Times when gold did outperform the Nifty
    15:30 - The second-order effects of gold smuggling
    17:30 - Buying gold for emotional and goal-based reasons
    20:00 - Should you buy gold to hedge against a crisis like war?
    23:55 - Is buying digital better than physical gold?
    Refer - What is digital gold?
    36:30 - Is gold as an ETF a good option?
    Refer - What are Gold ETFs?
    38:30 - Sovereign gold bonds as an avenue for investing in Gold?
    Refer - What is the Sovereign Gold Bonds (SGB) scheme by Govt of India?
    43:00 - What is the best way to buy gold?
    If you loved listening to Deepak talk about money and finance. You'll also find his book quite interesting - You can buy the book here – Money Wise.
     

    • 48 min
    Masala Money: Krish Ashok X Deepak Shenoy on Food and Finance

    Masala Money: Krish Ashok X Deepak Shenoy on Food and Finance

    Two engineers get together to discuss two life essentials - food and money! Our food expert is Krish Ashok. Ashok is Global Head, Digital Workplace at TCS. He is a techie, a musician and an author. He talks about the science behind food, the history of food and offers a lot of food for thought for us to explore further. If you are interested, a good starting point is his famous book - Masala Lab.
    Our money expert is Deepak Shenoy. Deepak talks about the importance of managing your finances, the myths about investing, the fallacies that investors should avoid, and his take on cryptocurrencies. It is quite a treat to listen when he shares food metaphors to explain financial concepts. So listen in!
    Topics & References:
    02:00 - Science of Indian food & cooking
    Refer - The parable of turkey and how things are done
    13:30 - Do modern food habits cause lifestyle diseases?
    21:45 - Wait, it's the opposite? Butter is ok but the Naan is not?
    25:30 - Basics of food everyone should follow
    Refer: Michael Pollan: Three Simple Rules for Eating
    37:00 - The play of sugar & salt
    40:00 - People hate changing food habits
    45:00 - Each of us processes the same flavor differently
    49:00 - We don’t like something because its unfamiliar, not necessarily bad
    52:00 - Misconceptions about Food
    Refer: Why the Tomato Was Feared in Europe for More Than 200 Years
    56:00 - The myths of Genetic Modification
    Refer - The Story of Norman Borlaug, the American Scientist Who Helped Engineer India’s Green Revolution
    01:01:00 - How do we make more people cook? (especially, the men)
    Refer - Apple Cider Vinegar Rasam
    01:07:00 - Does the online food delivery phenomenon change things for food and our food habits?
    01:11:00 - Switching roles - Ashok Asks Deepak about Money
    01:13:00 - Building a relationship with money
    Refer: Book: The Lexus and the Olive Tree
    01:17:30 - What money can do for you?
    01:23:00 - How an adult should learn the basics of Finance?
    Refer: Book: An Economist Gets Lunch
    01:43:00 - How should salaried professionals think about Income Tax?
    01:50:00 - Working as an employee Vs working as a businesses
    01:54:00 - Understanding Inflation first before learning about investment returns
    Refer: What you know about inflation might be wrong
    02:01:00 - How do you make money work for you?
    02:09:00 - How to allocate between Equity & Fixed Income?
    02:11:00 - Ways for your money to make more money?
    02:16:00 - Importance of diversification in Finance & Food
    02:19:00 - How should one think about their own risk appetite?
    Refer: Harry Markowitz and Modern Portfolio Theory
    Refer: How Not to Be Wrong: The Power of Mathematical Thinking
    02:28:00 - Is there a tool that helps track personal financial growth?
    02:37:00 - Deepak’s thoughts on cryptocurrencies
    Refer: Blockchains Are a Bad Idea (James Mickens)
    Refer: Selling Shovels in the New Startup Gold Rush
    You can buy Krish Ashok's book on the science of Food - Masala lab.
    You can buy Deepak Shenoy's book on investing - Money Wise.
    Check out our wealth management service - Capitalmind Wealth (PMS)

    • 2 hrs 44 min
    The creator economy with Amit Varma, and lessons from Deepak's book Moneywise

    The creator economy with Amit Varma, and lessons from Deepak's book Moneywise

    Today's episode is a crossover with The Seen and the Unseen podcast, hosted by Amit Varma. Amit and Deepak discuss how their careers - as creators - have evolved with the digital age. And their journey of discovering their own authentic voices. They take a first hand look at the creator economy and how it's shaping the media today. 

    2:32:00 onwards, they discuss key lessons in Deepak's new book, Money Wise, along with some behind-the-book stories.

    • 5 hrs 2 min
    Why you need to stop buying bankrupt companies

    Why you need to stop buying bankrupt companies

    What happens when a company goes bankrupt? Why do investors buy their stocks that are headed to zero? In this episode, we explore how the Insolvency and Bankruptcy Code (IBC) has changed the game. Deepak explains the many nuances of current regulations and how they've evolved. We dive into examples such as Bhushan Steel, Sintex and Ruchi Soya - which we hope will give you clarity. Listen in and decide. Would you stay the hell away from such stocks, or start hunting for bargains?
    ---
    Understanding Bankruptcy
    Businesses are tough and the best ones survive. There are ample failure points for a business that can drive it to bankruptcy. One or a combination of factors such as economical, social, regulatory, political, geographical, etc can drive a business suddenly to the ground or induce a slow death. Such companies eventually stare at bankruptcy. We discuss -
    - What is bankruptcy?
    - Does everyone lose money when companies go bankrupt?
    - Who gets what when the company is sold for parts?
    ---
    Learnings from the Sintex saga
    Sintex Industries, the Ahmedabad-based company, that boasts of tanks covering the skyline of most cities of India, was dragged to bankruptcy courts after it defaulted on a meager payment of ~15.4 crores towards principal and interest on its NCDs. This was the final nail in the coffin for the firm that had mismanaged its finances for too long. We discuss -
    - What Sintex does as a business
    - How the company was re-structured (through demerger)
    - How its issues snowballed to lead the company into IBC
    Eventually, the IBC ( Insolvency and Bankruptcy Code) tribunal was able to keep the company running and also got a successful bidder to buy out the stressed company. That’s good news for almost all of its stakeholders. Except for its shareholders who will lose all of their equity in the company. So they get nothing. Zero.
    ---
    So How does IBC work? Why do existing shareholders lose everything?
    The short answer: Because existing shareholders contribute nothing to the upcoming growth of the company, they get nothing. The company that these existing shareholders bought into eventually went bankrupt. So the story for existing shareholders ends here with a big zero in their hands. Sounds unfair but that’s how it is. We discuss -
    - How does the IBC process work?
    - Every existing stakeholder (debtors, employees, vendors) gets some part of the new entity. The current shareholders should also get a piece no?
    - What actually happened to  Sintex shares?
    - How did things use to happen before the IBC?
    There are a lot of examples discussed in this section that explain different aspects of the bankruptcy process and also highlight how each bankruptcy case is different.
    ---
    But, existing shares of Ruchi Soya went up "to the moon" while it was going through bankruptcy
    All bankruptcies are different and unique. Ruchi Soya was trending on social media recently because the company came back strongly from bankruptcy and its investor (Patanjali) seems to have made a killing on its investment. There’s lots more to the whole revival story. Deepak explains -
    - How regulatory rules change impacted the Ruchi Soya bankruptcy process
    - The bidding by Adani and Patanjali
    - Interestingly, they kept 1% of the company listed. Why?
    - How does Patanjali make Ruchi Soya operating cash flow positive?
    - The positive impact of Covid
    - Why is a company that makes only 800 Crores has a market cap of 31000 crores?
    ---
    Does investing in distressed companies work?
    We all love investing at its theoretical best - buy extremely low and sell high. We also keep repeating Buffett's quotes like “Buy when there is blood on the street”. Distressed companies feel like a value buy all time but they are almost always value traps or falling knives or whatever. We briefly touch upon this before we wind up the podcast -
    - A quick reference to Buffett’s investing in the Salomon brothers
    - Brookfield & Hotel Leela deal - distress i

    • 54 min
    CBDC - Can RBI make a big leap into the future with digital currencies?

    CBDC - Can RBI make a big leap into the future with digital currencies?

    There is a lot to unpack about this new digital currency RBI is talking about. Deepak and Shray built up the discussion by pondering over successive questions. Deepak takes us through how cryptocurrencies currently work. This sets up the context to the current ways of handling digital currencies and we move on to discuss the RBI-backed digital currency - Central Bank Digital Currency (CBDC).
    Key Points 
    How CBDCs are not cryptocurrencies? And how are they different? Is CBDCs actually required or is it a response to the popularity of cryptocurrency? So basically, why now? Is the CBDC likely to be anonymous like cryptocurrencies? Can CBDCs be an alternative to the SWIFT system given how Russia has been isolated by the world right now? Impact of CBDC on Monetary and Fiscal policies?

    • 1 hr 2 min

Customer Reviews

4.8 out of 5
74 Ratings

74 Ratings

Dubsie77 ,

Very Informative

Thank you Deepak and team for pricing a deep and informative perspective on varied topics that directly impact us.

rjarorqaaa ,

One star less due to Shray

The podcast is really good. But I am deducting 1 star due to Shray's frequent and annoying interruptions before Deepak even completes his sentence.

iamcollin ,

Great podcasts

Watched the podcast of Kunal shah of Cred. Absolute gold in terms of information.

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