The most important requirement for a start up is not just PROFITABILITY, but also the availability of CASH. Cash flow is not the same as profitability – and many businessmen do not realize this. If you are a supplier of material which is not critical for a business, chances are your payment will be [...]
The perennial search for quick money takes us through lot of unknown routes. It takes a lot of hard work, luck, government lobbying, team building – to create companies like Tata Steel, Hdfc, TCS, Infosys, Reliance, Honda Motors. It takes years, if not decades to create good companies too! However a few people feel (and [...]
If you were not around to see the -46% of 1993, but were around to see 2008, then 2011 would have looked quite bad. Seeing your portfolio shrink by 25% (worse if you did not have Bharti, but had more of Reliance!!)…and if you were a $ investor, it was worse. Including the 19% fall [...]
The Sensex may have given 19% returns over 33 years, however it may not have given 19% in any particular year! This is fairly simple – the standard deviation is quite high, and good years are followed by bad years. Simple. In the year 2011 the sensex’s performance looks bad because of the poor [...]
Yesterday I met a guy who has been a bear for a long time…Last year Dec 2011 he had told me the following: 1. Volumes will shrink in 2011, and a few brokerage houses will go down. 2. I had asked him “Is Reliance a good buy at about Rs. 12oo”. He said why not [...]
For all those who have been reading about how badly the mutual fund industry, life insurance industry and the banking industry are suffering….please look at the results of all the banks! – Icici bank was more profitable because of the Rs. 350 crores from the life insurance arm – Hdfc mutual fund is the biggest [...]