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…
Embarking on the stock market journey? Discover the essential principles with our “9 Golden Rules of Investing in Stocks.” Learn to navigate market uncertainties, avoid common pitfalls, and make informed decisions. Whether one is a beginner or seeking to refine strategy, these rules offer valuable insights to better our investment journey. You are ready to…
Since HDFC Bank has faced a noticeable decline in its share prices. This decline has caught the attention of investors and market enthusiasts. The stock witnessed a 14% slide, leaving many wondering about the reasons behind this sudden drop. In this article, we’ll try to understand the reasons for the fall and future risks and…
Dividends are a golden stream of passive income. Hence dividends represent itself as a rewarding aspect of stock ownership. Dividends are the portion of a company’s profits distributed to its shareholders. It is the measure of a tangible return on investment. Dividends are financial rewards, distributed regularly by mature and profitable companies. In this way,…
The Indian stock market is influenced by various factors influencing investor sentiment and hence the market trends. The Indian stock market has witnessed significant historical transformations, reflecting the nation’s economic evolution. Economic indicators like GDP growth and inflation rates play pivotal roles, impacting the stock metrics and hence the overall market. For instance, during periods…
As we step into 2024, the Indian stock market enters the new year with sets of opportunities and limitations. Our market is getting influenced by both domestic and global trends. A careful examination of recent developments reveals key insights that can guide investors in making informed decisions. In this article, I will present my observations…
Starting the journey of stock investing presents a crucial decision for beginners. Either one can rely on expensive expert advice or can master the art of Do-it-yourself (DIY) stock investing. The appeal of experts is often limited by their high costs and the difficulty of finding trustworthy guidance, especially for people investing small amounts each…
Consider this article as a resource that can unlock the wealth-building potential of the stock market. If you’ve ever wondered how to make your money work for you, you’re in the right place. We’ll discuss the art and science of investing in the stock market. Remember, the stock market is where fortunes can be built…
Analysts and discerning investors gravitate towards stocks of debt-free companies. However, appreciating companies without debt doesn’t mean we ignore all companies that have debts listed on their balance sheets. Some companies strategically leverage debt to enhance shareholder value, as evidenced by their impressive Return on Equity (ROE). On the flip side, it’s essential to recognize…
Value investors, inspired by the timeless wisdom of investing gurus like Benjamin Graham, excel at estimating the intrinsic value of stocks. However, navigating through the vast sea of over 5000 listed stocks in the market presents a daunting challenge. Even seasoned experts find it impractical to calculate the intrinsic value of every stock. So, what’s…
To assess a company’s profitability requires a nuanced understanding of financial metrics. This article is about how to measure the profitability of companies. We will learn how to tell if a company is profitable by reading its balance sheet and profit and loss accounts. Which ratios can measure and highlight the profitability aspect of the…
Stock market investors often seek a guiding philosophy to help them practice stock investing. Warren Buffett is one such guide whose investment principles can be our lighthouse. Renowned for his astute value investing approach and long-term perspective, Buffett’s methodology is something I rely on completely. Check this list of Buffett-type stocks. As an Indian investor,…
