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Motu was busy drawing zeros on a piece of paper when Chotu accosted him outside his home.
Arre , what’s with the andas bhai, he asked, counting your money?
Trying to figure out how many zeros are there in one trillion, Chotu. I just read that the Apple stock has hit one trillion dollars in market cap in the US.
A trillion has 12 zeros, Motu, but think of it as one lakh crore.
Wah , what a country! In India, we only have scams with such numbers Chotu, not companies.
Haha, you are quite right, Motu. The market cap of all the BSE stocks put together is $2.3 trillion. But in the US, just the FAANG stocks now enjoy more than a $3 trillion market cap. Plus, they have multiplied investor money 2.5 times in the last three years while the US index is up by 30-odd per cent.
I have seen fangs only in the Nagin serial, Chotu. What do you mean?
It’s an acronym for the five global tech giants — Facebook, Apple, Amazon, Alphabet (Google) and Netflix — coined by Jim Cramer.
Yes, can see why. Ten years ago, no one knew an Amazon, Google or Facebook but today they are even in my home. I’m sure they must be making billions of dollars in profits.
It’s not profits that investors are looking at, but their customers, Motu.
Amazon made $2.5 billion profits on $53 billion revenues in the recent quarter. Investors have flocked to these companies because they are already giant-sized and growing at furious rates.
They believe they will stamp out competition and dominate the world in the businesses they choose to be in.
Like Godzilla in that movie! But all my friends already have a Facebook account, Chotu.
Sahi pakde . That’s why investors react so badly if they see even a slight slowdown in user numbers or growth rates for FAANGs. In the latest results, Facebook added fewer new subscribers and the stock was beaten down by 20 per cent in a day.
People are also worried about new data privacy laws putting a spoke in their growth.
Oh, how I wish we had such stocks which doubled my money in three years in India, Chotu!
Have you heard of HRITHIK Motu?
Yeah, I like his dance moves, but hated that Guzaarish movie.
Hehe, I’m talking of HRITHIK stocks that have our Dalal Street- wale all excited. The term HRITHIK was coined by a smart analyst for the eight stocks that have had the Nifty dancing to their tunes this past year. They are HDFC, HDFC Bank, apna Reliance Industries, Infosys, TCS, HUL, IndusInd Bank and Kotak Mahindra Bank.
Are they stamping out their competition like FAANGs, Chotu?
No, unlike the FAANGs, these are mature businesses. But traders have taken a fancy to them because while everything else is crashing, these eight stocks have lifted the Nifty to a new lifetime high. Of the 16 per cent gain in the Nifty50 in one year, 13 per cent came from HRITHIK stocks!
Why?
Really don’t know, Motu, can only guess. These are companies which lead their sectors and have delivered consistent results. So maybe foreign investors and domestic funds which are looking for liquid and stable names in a volatile market are buying them as safer bets.
Should we people buy HRITHIK now and ditch the Roshans and Kanganas, Chotu?
Hmm… HRITHIKs are good companies. But usually, when the market goes crazy about one small set of stocks and ignores all the rest, it’s best not to join the party, Motu.
Such movies usually end with the hero taking a bullet.
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