IT Service Companies Valuation comparison

With gradual US and Europe recovery, the most likely beneficiaries are global IT service companies and the stock of top 10 IT solution providers are already reflecting the optimism. Most of them are at 52 week high and are trading at the higher end of the last 5 years valuation range. 

However within IT space some companies, which have higher growth rates and superior return ratios, are commanding relatively much higher valuation than their peers. For instance TCS is trading at 27 times PE multiple vs it's closest comparative competitor Accenture which is trading at just 17 times based on trailing 12 months EPS. IBM the largest of the pack is trading at 12.4 times TTM EPS.

Advantages and dis-advantages of weak INR vs USD

Sharply falling Indian Rupee, which has crashed more than 20% since 1st May 2013, is giving sleepless night to importers and RBI but costly import due to currency depreciation is only one side of the coin. 

There are distinct advantages of weaker INR against USD beside having obvious problems. Following are the interesting pros and cons of weak INR vis-a-vis  USD.

Tupperware Brands: Stock Analysis and Valuation

When my sister in law became Tupperware's member recently and shared some of the business dynamics, and internals of the company I got so thrilled that I immediately bought $200 worth of products and went on to search if it is listed on Indian bourses. I found it listed in U.S markets as TUP and already hitting 52 week high. 

What struck me most is the Return on Equity that company is generating which is north of 70%. Tupperware has huge potential in India and other emerging economies as their products have become quite affordable in these economies due to rising per capita income. 

Which is the best country for investment 2013 - 14?

Yahoo Finance Poll result on
Best country for investment

According to a Yahoo finance poll conducted in August 2013, U.S is clearly the first choice among investors. Around 67% votes (62k voters+) went in favor of U.S while 10% voted for Europe. So far in 2013 U.S stock markets has been the best performing large sized market in the world while the flavor of the past year, BRIC nations, has performed very poorly. 

With rising employment, GDP and stability in the U.S economy it has again become the preferred choice for large investors who went scouting for investment avenues after the crisis hit U.S in 2008. Brazil, Russia, India, China, Turkey and many mid and large sized developing economies received huge inflows from funds and institutional investors from U.S. and European region for the sake of diversification and delta. 

Warren Buffet Holding in Washington Post

Warren Buffet with Katharine Graham

Warren Buffet, the billionaire investor and chairman of Berkshire Hathaway, has spent 25 years on Washington Post board while holding 1.7 million shares in the company. Buffet started accumulating post shares in 1973.  As of 2004, he owned 1.7 million shares at a cost basis of $11 million. 

As per the Berkshire Hathaway's latest 13-F, he still owns the same number of shares which at current market price of $568 is valued a little less then a billion dollar, $0.965 billion precisely. The Buffet's investment in Washington post has appreciated by whopping 8700% in less than 40 years, a CAGR of around 13%.