If idea is to manage our finances seriously, we’ll resort to experts to handle it for us. But is it correct to be dependent on the external agency for this activity? It is not wrong, but it has its own limitations. The success is dependent on the skill of the allocated personal finance manager. More…
We all know what is a fixed deposit, right? Many consider it as an investment option. But I personally prefer to refer to and use it as a convenient savings option. ‘Term deposit’ and ‘bank deposit’ are few other names of fixed deposits. What is ‘fixed’ in a fixed deposit? The tenure of the deposit….
Recently I was reading a book written by Peter Lynch (One Up on Wall Street). It talked about a concept called “multibagger stocks“. We all know what are multibagger stocks, right? Most of us have even use this as a phrase casually to refer to “quick return stocks”. But multibaggers are far for it. [Check…
If you like to estimate intrinsic value of a stock, then start with Net Current Asset Value Per Share (NCAVPS). Why? Because it is the easiest to calculate and is most reliable of all. Yes, for me it is even more reliable than DCF method. But the big problem with NCAVPS method is that, its…
There can be a formula for wealth building. If you are interested to know about how to build wealth then you just need to follow this formula. Who can use this formula? Anyone can use it. But people who are in 30s can benefit most out of it. Why? Because they are ones who have…
To determine how much car you can afford, calculate based on your monthly income, aiming to spend no more than 4.5% annually on maintenance and insurance. Give consideration to car size, brand, and resale value to ensure affordability. Use this car affordability calculator.
[This article comes in a series of articles written about the fundamental analysis]. People who are interested in long term investing in stocks knows about financial ratio analysis. If you have heard about terms like price to earning ratio, price to book value ratio etc, you know ratios. But in this financial ratio analysis we…
The Dosa Economics of Raghuram Rajan explains the negative impact of high inflation on our purchasing power. But we already know that high inflation is bad, right? So why the RBI Governor had to coin the concept of Dosa Economics? Both, ‘high’ and ‘very-low’ inflation is bad for the overall economy and also for our pockets. Hence Reserve…
There is a need for people to know about direct plan offered by mutual fund companies. What is the need? In good old days, mutual fund schemes could be sold to investors only through agents and distributors. Reason being, lack of penetration of internet into the Indian households, hence negligible online transactions. But today we…
Residual income method is a unique and a comparatively easier way to estimate intrinsic value of companies. What makes it unique is the factor called “residual income“. I’m a big fan of valuing companies using discounted cash flow method (DCF). Why? Because if done accurately, its computed intrinsic value can be very accurate. But its…
Why I got interested in the concept of Net Asset Value (NAV)? Because it helped me to see my portfolio-building from the eyes of a mutual fund manager. Generally, I build my savings under several heads (like saving#1, saving#2 etc). Overtime, savings keeps accumulating under each head. When it becomes sufficiently large, I use a…
‘Authorised Share Capital’ and ‘Paid Up Share Capital’ are two terms that we as investors must know about. Why? Because changes in the numbers of these metrics can effect our investment returns (read here). Company needs capital to establish its assets and run its operations. From where the company will source its capital? It can…
