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 […]
PS: There are times when I do get paid for writing on my own blog too. It is for you to decide how much to trust my write up. Personally I am not applying for this IPO, but I am a shareholder of Hdfc Ltd, lotsa friends and relatives (yes within the meaning of the […]
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 […]
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 […]
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 […]