Summary Points: Traditional businesses (like TCS, RIL, Britannia) focus on making and selling—revenue growth and margins are king. Banks (like HDFC or SBI) thrive on managing money: loans, deposits, and interest spreads drive them. Key differences lie in risks, metrics, and economic triggers: competition for one, bad loans for the other. Mixing up their analysis…
Let’s talk about something that’s been buzzing in my head lately, market sentiment analysis. I’ve been thinking how tools like Google Trends might just be the secret sauce to smarter stock investing. I mean, we’ve all been there, right? Scrolling through financial news, dissecting earnings reports, or staring at candlestick charts until our eyes cross,…
If you’ve ever peeked at a company’s balance sheet and wondered, “What on earth are retained earnings, and why should I care?”, you’re in the right place. I’ve been down that rabbit hole myself, and trust me, once you get the hang of it, retained earnings start to feel like the unsung hero of a…
“Forget the endless parade of bullish forecasts and “can’t lose” stock picks. If you’re serious about navigating today’s market, you need a dose of cold, hard reality. That’s exactly what Lee Munson, Chief Investment Officer at Portfolio Wealth Advisors, delivered in a recent interview. The message is clear, earnings still matter. AI needs to prove…
At 94, Warren Buffett remains a solid figure in the world of investing. He is a living legend whose annual letters to Berkshire Hathaway shareholders are eagerly awaited by all investors. In his latest letter, released on February 22, 2025, Buffett reflects on his remarkable 60-year journey with Berkshire. He points to the company’s staggering…
Ever wondered why some stocks zoom to the moon while others crash and burn? There are a lot of things that determine the stock price movement. But the story of the profits of the company plays a crucial role here. Like, there are many things that makes a great cup of chai, – right from…
We often hear about a company’s performance through a simple number: Earnings Per Share (EPS). It’s a quick way to understand how much profit a company makes for each share of its stock. But there’s a sneaky cousin of EPS called Diluted EPS (DEPS). Understanding it can save you from making some costly investment mistakes. Why…
If you want to know what is working capital or its basics, I’ll request you to check this blog post. But here, in this article, you will see the practical side of working capital. We’ll see examples of real life companies and see what constitutes their woking capita. To get a clearer perspective of working…
Recently, I got a query from one of my young reader (in 20s). The question says: “I have heard that ROE and ROCE are important metrics for evaluating stocks. But do they really influence long-term stock returns? If I look at last 10-year period, will it prove that high ROE and high ROCE stocks generate…
Today I’ve read an article on Business Standard which states that, post the merger, HDFC Bank’s Loan Deposit Ratio (LDR) has fallen below the 100% mark. So, I thought why not write a blog post explaining the use and relevance of LDR for us as an investor in banking stocks (my explanation is here). Loan…
I received a message from one of my readers. He wanted to get more clarity about the concept of working capital, and also about the ‘change in working capital.’ He is a person from a manufacturing background hence I thought to explain the topic using a related example. We’ll try to first understand the concept…
Fundamental analysis is a cornerstone of successful stock investing. It empowers individuals to make well-informed decisions in the dynamic world of the stock market. This approach goes beyond the analysis of short-term market fluctuations. Instead, it focuses on evaluating the intrinsic value of a company, uncovering its true worth. At its core, fundamental analysis involves…
