Analysis of stocks that are new in the market is not so simple. What is the problem? The analyst must make some assumptions. For the company which has 10-year records, the assumptions-list is much shorter. Recently I met a friend who enquired me about the recent IPO (in Dec’2020) of Mrs. Bector Food. Someone advised…
Summary Points: Goal-based investing ensures that we align their financial decisions with specific, purpose-driven objectives, enhancing efficiency and long-term success. By identifying and prioritizing financial goals like building an emergency fund, purchasing a car, buying a home, securing a child’s future, or planning for retirement, investors can systematically allocate funds to appropriate instruments such as…
There is a concept of finance that says that there is a ‘time value of money.’ It is one of those concepts which works as a foundation of all money management. But before we can understand the time value of money, we must know who should care about it. Theoretically speaking, everyone is affected by this concept. But…
If you are in a dilemma about whether to invest or prepay the home loan using your spare cash, then you are not alone. This dilemma happens to a majority of people. When people climb-up the income ladder, they begin to generate more free cash. If the focus is on improving one’s financial health, wise…
The question, how to build ten crores by investment is vague. It only talks about the end goal. But how to reach there? That is what we will answer in this article. Also Read: How to become rich. Before we can answer the question, we will have to ask a few more questions to remove the vagueness. The…
Some people might question the utility of my Stock Analysis Worksheet. Why? Because it mostly rates its stocks as overvalued or of a low overall score. Some users find it frustrating and send emails to me about the plight. I can understand this feeling. We want the worksheet to throw a list of names of high-scoring, undervalued stocks….
The cost of capital is the cost that a company must bear for the funds it has raised to do the business. Doing business calls for arranging cashflows both for short and long terms. There are two ways companies can raise money. The first is through equity. This is done by the distribution of ownership among…
What prompted people towards gold investment? There was a time When the gold standard was used to value currencies. Every paper currency issued had a value directly linked to gold. But in the 1970s, the US decided to shift from Gold Standard to Fiat Money. Thereon, gold became more of an investment vehicle than a…
What is the intrinsic value? It is the inherent value of an asset (business, enterprise, etc.). The essential nature of the asset gives it its intrinsic value. The value is not dependent on external circumstances. We can also understand intrinsic value as a true value of an asset. From an investment point of view, it…
The discount rate is nothing but our minimum expected rate of return from an investment. The concept of discount rate is used to calculate the present value of future cash flows originating from an investment. Why do we need to calculate the present value? It is a method to check if an investment is worth…
When one first starts to feel the need for a personal finance overhaul? It does not happen while just starting in a job. The need for organizing finances creeps in after few years on the job. It’s the time when one is wondering where the money is going? This query starts a chain of thoughts in our minds. Eventually, we realize…
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