Here is the concept of self-financeable growth. I first read about it on Harvard Business Review (HBR). The write-up was interesting. Hence I thought to write about it, in my words, for my readers. How I landed up on HBR? Recently Indian stock market is buzzing with IPO’s. Most of the IPO’s attracted the attention of…
Companies need cash to run their day-to-day operations. Working capital management focuses on factors that generate and consumes cash. A company must be capable of generating more cash than it consumes. Cash parked in the company’s bank account is not working capital. We will dig deeper to get a better understanding of the concept of working capital. What Is…
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 of a company is not easy for a novice? It is a thing that must be learned. In this article, we will try to do just that. Generally speaking, investors…
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 ACR to check two things about the company. First, they can check if the company is risky due to a high debt load. Second, they can also check the price…
Savings + Investment Portfolio + Philosophy = Wealth Accumulation A high-rise building stands on a strong foundation. If wealth is like a high-rise building, then what is its foundation? There are three constituents: (a) savings, (b) investment portfolio, and (c) knowledge of the philosophy of wealth building. It is a common belief that high income…
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 this field are Alpha and Beta. The term beta is in use for a long time. But the trend of alpha is more recent. What are alpha and beta? Alpha…
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 when it comes to the margin of safety. A stock trading at two-third of its estimated intrinsic value can be said to be available at a good margin of safety….
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 a common stock investor can also utilize the CAPM model. We can use it to tune our return expectations from stocks. Generally, when we buy stocks, we do it with…
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 was reading Berkshire’s Annual Report (2020). In the first few pages itself, it became evident that it is an uncommon company. The report had no flashy images, no charts, no…
![If A Bank Closes What Happens To The Deposits? [DICGC]](https://ourwealthinsights.com/wp-content/uploads/2021/06/If-a-bank-closes-what-happens-to-deposits-image2.png)
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 deposits? The answer is in the term called “Deposit Insurance & Credit Guarantee Corporation [DICGC]”. We will discuss about DICGC in this article. In a comparatively extravagant world of cryptocurrencies and the stock…
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. He also wrote a book called Common Stocks and Uncommon Profits way back in 1957. But the book is as relevant today as it was ground-breaking during its first publication. The focus…
![How To Build A Winning Stock Portfolio [India]](https://ourwealthinsights.com/wp-content/uploads/2010/06/Stock-Portfolio-Image.png)
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 (like DCF) in place, using which one can analyze a business. But when it comes to stock portfolio building, there is no established process. A portfolio that might look apt…
