Well this market might have rattled many of us, but i want all of us to see another perspective. Looking back at the previous crash of 2008 , Today’s darling i.e Bajaj Finance fell from Rs 53 to Rs 5 a 90% fall and we all know that it nearly touched 4923 which is a…
In August 2013, NSE Small cap Index made a low of 2509 post which it saw a humongous bull run till Jan 2018 I.e 53 months. During this bull run the small cap index as pack moved from 2509 to 9656. Wow a return of 385%, nearly a four bagger on the index alone. When…
We all love some companies or say the compounding machines which will grow constantly year after year .Unfortunately most of us are not able to buy them due to excess valuation or sometimes buy at higher prices and wait for years for any appreciation in investment value.However great companies also go through time corrections if…
In the process of re analyzing my existing portfolio and reevaluating the existing businesses, Thomas cook stood out due to its transformation from a local travel player to global travel house,corporate restructuring and its leadership compared to its peers. You will find a lot of analysis on TCIL by the investor community hence have not…
Last week I met a friend of mine who is also into investing and we got to an interesting discussion on Dividends, Short term capital gains and this discussion is the germ for this post. So Manoj if you are reading this full credit to you for bringing this topic up. For a Moment Let’s…
Brief Background: Prima Plastics started in 1993 manufactures plastic moulded furniture (PMF). The company manufactures products ranging from chairs, baby chairs, dining tables, stools, teapoys, material handling products etc and competes with the likes of Nilkamal, Wimplast, etc. PPL is the third largest player in the plastic furniture segment after Nilkamal and Wim Plast with a…
Alright, After getting a glimpse of “ Owner Earnings” , We will now understand Maintenance Capex and find a best way to calculate it. Maintenance Capex vs Growth Capex: Growth capex can be defined as any expenditure which is undertaken in the interest of increasing revenues and profits, while Maintenance capex can be defined as…
What is Owner’s Earnings? Most of us as investors use various metrics and formulas to assess the value of a company.We have heard and used various metrics like EPS, Earnings Yield, Free Cash Flow etc., to determine the operating success of a business. Berkshire Hathaway among various other measures uses a different and even to…
Originally posted on Seeking Wisdom:
BestBooks and GreatBooks are two retail companies selling all kinds of books. Given below are some of their financial data in 2011 and 2012 BestBooks 2011 2012 Total Assets 1000 1500 Debt 0 0 Equity 1000 1500 Sales 2000 2200 Interest Expense 0 0 Net Income 500 550 GreatBooks 2011…
Three friends(Ajay, Ravi and Vineet) from a small town after finishing graduation moved to Bangalore for Job search. The Job market was ripe and their good grades helped them to secure an IT Job in MNC’s with a pay scale of Rs 20,000 per month by early 2004. Few months later “Hey guys we have been earning…
The late Phil Fisher was one of the great investors of all time and the author of the classic book Common Stocks and Uncommon Profits. Fisher started his money management firm, Fisher & Co., in 1931 and over the next seven decades made tremendous amounts of money for his clients. For example, he was an early…
Background : Walter Schloss is not nearly as well-known as other investors such as Warren Buffett but Schloss has gained a reputation as one of the best value investors ever. Like Buffett, Schloss was a direct student of Benjamin Graham, and is one of the “Super Investors” mentioned by Warren Buffett in his famous essay, The…
Effectively the sources of optimism can be split into those related to nature and those related to nurture. So let’s start with nature. Many of the biases we have today presumably had some evolutionary advantage .What possible role could optimism have played in our evolution as a species? Lionel Tiger argued in his book Optimism: The Biology of…
“Not everything that can be counted counts and not everything that counts can be counted” —Albert Einstein Investing is part art and part science. The science part is easy; all you need to do is look at the numbers. Review the company’s balance sheet, income statement, and cash flow and you are halfway there. However, if…
I have been a regular investor in Stocks mostly on a SIP(Systematic investment plan) basis, I believe majority of the investors invest on a regular basis if not on SIP due to Various reasons. When we invest in stocks, knowing the profit and loss for each individual stock alone is not enough. We have to…
No modern-day investment “sage” is better known than Peter Lynch. Not only has his investment approach successfully passed the real-world performance test, but he strongly believes that individual investors have a distinct advantage over Wall Street and large money managers when using his approach. Individual investors, he feels, have more flexibility in following this basic…
Philosophy and style Investment in companies in which there is a well-grounded expectation concerning the firm’s growth prospects and in which the stock can be bought at a reasonable price. A thorough understanding of the company and its competitive environment is the only “edge” investors have over other investors in finding reasonably valued stocks. Universe…
After Gauging through the Balance sheet and its components, Lets turn our attention to Income statement which gives us one important perspective on health of a Business –Its Profitability. What’s an Income Statement? The Income Statement presents information on the financial results of a company’s business activities over a period of time. It communicates how…
After studying the Liabilities side (here) of the balance sheet, let’s move over to the Assets section now. As you can see in the snapshot above, the Assets side of the Balance Sheet is made up of two broad categories: Non-Current Assets Current Assets Let’s understand them and their constituents one by one. Non-Current Assets: These…
Here is a section “Accounting Demystified” for beginners and intermediates to learn about the basic yet most essential part of investing i.e “Financial Statements”. Being from a Non financial background i have seen a lot of people finding it hard to read and understand numbers and financial jargon’s .Hence it is an effort to empower each and…
Here is a Glimpse of Warren Buffet’s Investing process and it is a good starting point for all beginners however knowledge is like an Ocean and there is much more to buffet as you go along especially once you start reading about the Oracle of Omaha. Buffett’s Philosophy …
Lynch ran Fidelity’s Magellan Fund for thirteen years (1977-1990). In that period, Magellan was up over 2700%. Lynch averaged a 29.2% annual return, consistently more than doubling the S&P 500 market index and making it the best performing mutual fund in the world.He retired in 1990 at the age of 46. After his retirement, Lynch authored…
CEOs need to do two things well to be successful: Run their operations efficiently and deploy the cash generated by operations. Most CEOs focus on Managing Operations which is undeniably important however dismiss the importance for Capital Allocation. If you go back to History you will always see the successful ones have always been the…
Investing Mantras 