Terminologies that are frequently used in Equity Markets..
Face Value, Book Value, Market Value.. Click to Continue reading
Why is Indian Rupee falling against US Dollar?
US Dollar – as most of us know is the most liquid currency in the world & its a global currency that is accepted for trade throughout the world. If my memory serves me right – as per the latest world bank report which i read – US dollar constitutes around 65% of all Central bank – foreign exchange reserves. This equation alone says – why every country wants to buy Dollars, as most of their trade settlements are done in US dollar terms. This was a context to start with.
You may Say – US is sitting on pile of net debt around 20+ trillion, why is emerging market currencies are weakening.. Click to Continue reading
Is GST really helpful for common man or just corporates?
From an economic perspective – GST as a tax policy is an extremely diligent tool for driving tax governance in any country, as most tax loopholes can be fixed & even if not – it can still give authorities enough directions to plug them. Well, i am not writing anything to discuss that.. My objective in writing this is – to get some clarity in people’s mind – if GST is helpful to common man in the long run… Click to Continue reading
How do you analyse businesses & hedge against inflation in your normal life? (Inflation = rise in purchasing power)
This is one of the most common question either i pose to my mentee’s or i get usually quizzed up on while i mentor. It is best understood, when i would answer it with an example which also is the best solution by itself.
Well, I watch at least 1 movie a month in PVR & the money i spend on ticket & Food / beverage is around 1200 rs for two. As & when i notice the show is running houseful – i buy 1 stock of PVR (around 1200 rs) = if the show runs houseful i am sure this will add to their revenues & eventually stock prices would also increase.. Click to Continue reading
To invest in Equities, You Must Understand businesses & its business models too..
You must consciously understand the fact that – investing in stocks / equities is all about part ownership of business. If you have no time or no interest to understand the business of the company you are investing – please treat your investment just like a lottery & accept that your probability is less than 10-25%. Well as i always say – even if made a monkey to invest – he still stands a probability of winning 50% – as the invested stock can either go up or down – while we humans have emotions attached to money unlike a monkey – so this reduces our probability of winning to 10-25%. . Click to Continue reading
How Important is to judge Quality of Management & Governance of a Company?
Governance in simplest sense means telling the ‘Truth’ in all aspects of life. Well in business interestingly the management can either be ethical or not ethical – they cant be in between the two. Warren Buffet once quoted – “I look for integrity, energy and intelligence in management”. Please remember – in the absence of first quality (integrity) – management with later two qualities will crush the business & investors at some point in time. Click to Continue reading
Stock market’s theory of profits & millionaire milestone
Well this is my definition of stock markets as i see it & sense it – with all my years of maturity being in the market. Most often, there are 4 kinds of mindset hats which usually drives people to stock markets – Strategy Mindset, Success Mindset, Profit Mindset & then Greed Mindset, .. You should wear them in your trading life depending upon your experience / maturity in life & trading, so it helps you only when you wear them at best times of your life. I would best indicate that you start to wear it in the same order – indicated above. Click to Continue reading
Which are the Critical Business Drivers / Success factors of firms?
Well, each industry will have a specific set of factors that affects its profitability & its growth prospects. These few indicative examples which could help you in how to set your focus on what matters most.
- Retail Sector, you must closely monitor footfalls & same store sales (SSS)
- Banking, works on Net Interest Income (NII) or Net Interest Margin (NIM)
- Telecom, its always Average Revenue Per User (ARPU) .. Click to Continue reading
What are Monetary Policies & how do one judge them ? how do they impact Economy?
I am sure most of you may be having this question – with the raising & lowering of interest rates of your loans & having an effect on your EMI’s. Well, monetary policies are administered by Central bank in an economy to deal with – supply of money, inflation, interest rates for the purpose of promoting economic growth & also to manage price stability in the market. . Click to Continue reading
World Economics at a Glance & Advantage India.
Out of all negatives biases shown by world Media – I will tell you that there are many Good news to cheer as well!
Rupee valued 15% lower against Dollar from recent highs –
This directly points to 15% discount across all business run in India – for all those dollar rich nations who wants to make purchases in India. First you will see real estate infused with fresh lease of cash inflow, second NBFC’s will be re-capitalised.. Click to Continue Reading