The most misused and least understood ratio is the Price Earning ratio or the P E Ratio….Almost everybody who ‘invests’ talks about P/E ratio. I am sure there are many people who do not understand the full form but use it nevertheless. Well when a company earns Rs. 20 as its annual earnings, and is […]
Let us get it right, the real rich do not borrow. Never ever for personal expenses, buying assets or personal INVESTING. Borrowing and investing is a very foolish thing to do for most people. Will a Mukesh Ambani or a Kumar Birla take a personal loan to buy shares? Tough to answer this question? No. […]
Most writers of personal finance have spent half their lives talking about the virtues of compounding, well, at least I have. So not compounding your money is bad. That is done and dusted. What can be worse? Borrowing. Borrowing is worse than not compounding your money – it is a case of NEGATIVE compounding. […]
Ha to be in your 20s and just starting out! You are a newly qualified CA, MBA, Engineer, Graduate…..out in the big bad world and all alone! Welcome to the world of finance. Most of us start life having a very hazy idea of what is finance. Even if you are a CA or a […]
a hypothetical letter to my hypothetical client. Any similarity to something like this already written by somebody is a sheer accident. Hello Mr. Client, Sebi has vide its circular said I have to tell you all the earnings that I have from your account. I wish they had said that mutual fund houses should […]
Last week I bought some auto, and telecom stock. In case of Infra I am seriously looking but cannot decide what to buy. Have met a few promoters and know a couple of big companies too well – so touching becomes MORE difficult. The toughest part of investing seems to be to change gears. Last […]
It is not easy to give simple advice. It is ever more difficult to follow them. Simply because if you do follow them and make money, your MAIN assumption in life ‘what is complicated is good’ is shattered. Ok here are some old nuggets which I have said in the past, saying it now, and […]