Talking about stocks, investing only in a financially healthy company is advisable. But it is easier said than done. Why? Because analyzing the financial health… Read More »Financial Health Of A Company: How To Identify A Company With Healthy Finances?
A financially healthy company tries to maintain its solvency and liquidity at all times. Solvency is the ability to meet long-term debt obligations, and liquidity takes care… Read More »Solvency and Liquidity Analysis: How Deteriorating Solvency Ultimately Leads To Bankruptcy
Generally, for banks and lenders, the asset coverage ratio (ACR) is one way to check the loan-friendliness of the company. Investors can also use the concept of… Read More »Asset Coverage Ratio (ACR): How to use ACR as a share price valuation tool?
Savings + Investment Portfolio + Philosophy = Wealth Accumulation A high-rise building stands on a strong foundation. If wealth is like a high-rise building, then… Read More »A Philosophy of Investment Portfolio Building: Converting Savings Into Wealth
When it comes to the use of jargon, probably the world of equity investment will be among its heavy users. Two commonly used words of… Read More »Alpha and Beta of Investment Portfolio: What is its utility?
People who know about value investing will be familiar with the term called “margin of safety”. Generally, people prefer to apply a rule of thumb… Read More »The Margin Of Safety: How To Apply The Theory During Stocks Purchase?
The Capital Asset Pricing Model (CAPM) is a financial model used by experts to establish a relationship between risk and return from an asset. But… Read More »Capital Asset Pricing Model (CAPM): Use It To Estimate A Stock’s ROI
Berkshire Hathaway is an American company run by the legend Warren Buffett. But why an Indian blogger (me) is writing about the company? Recently I… Read More »Berkshire Hathaway: Interesting Facts About The Company
Once a person said, I have a fixed deposit of 65 lakhs in a bank. He asked if a bank closes what happens to the… Read More »If A Bank Closes What Happens To The Deposits? [DICGC]
It will not be wrong to say that Philip Fisher was one of the first influencers who promoted the concept of fundamental analysis of companies.… Read More »Philip Fisher: The Investment Principles of This Great Investor
Knowledge about how to build a stock portfolio is perhaps as essential as the stock analysis itself. Though the former looks more daunting to me. There are processes and financial models… Read More »How To Build A Winning Stock Portfolio [India]
Let’s learn to analyze a stock from the perspective of the total return it yields for shareholders. To get a feeling about the total return, we will… Read More »Total Return: The Concept & Its Three Components