Archive for the 'Business Finance Learnings' Category

Cash Flow Statement

Cash flow statements are of a recent origin – it was not available to us in the 1980s – and we had to create it ourselves. It is a statement which shows the inflow and outflow of cash – for a particular period of time (like the Profit and Loss account). It shows you how […]

Accountancy and Investing: Profit and Loss account

All of us know that a company can make a profit or a loss. So why is this statement (account) called Profit and Loss account? the Americans call it the ‘Income statement’. Simple. This account summarizes all the financial activities – so if you made a loss by selling a car, and profit by selling […]

Accountancy and Investing: Shareholder’s Funds

The shareholders put money into a company to do business. How much is the money that shareholders put into a company? Money that they actually invested as equity Money that they actually invested as premium Money that they DID NOT TAKE AWAY as dividend – aka the profits left in the business What is all […]

Accountancy and Investing

Knowing accountancy and understanding the basics is a pre-requisite for investing in direct equity. However, some people believe that this is ENOUGH. Sadly, this is not so. Once you start understanding accountancy you will appreciate that numbers taken in isolation do not work. You will realize that “avoid companies with debt” or “company should have […]

Investing – the good and clean way

The Unusual Billionaires – one book which I have been postponing…but will read shortly! The author Saurabh Mukherjea, of Ambit made a presentation at the Morningstar Conference in October, 2017, Mumbai. Here are some excerpts… Most of us know that investment decision making is about fundamental investing. The fundamental investing starts with looking at the […]

Suffering of Entrepreneurship / Investing

What are your visions of being an entrepreneur or an investor? When I mean investor, I mean investing your own money, time, labor, sweat and tears. Not taking money from friends, relatives, banks, clients and running a sinking ship. I mean entrepreneur in the real old sense. If you think of a big office, great […]

Accountability vitally important for good results

It may sound quite obvious, but ACCOUNTABILITY is vitally important for the success of an organisation or a PORTFOLIO. Many people who start their own business are never accountable to ANYBODY for their organisation’s success. Imagine a 32 year old leaving his job to start his own business. He can just rot and do nothing. […]