Investment solution for US and Canadian NRIs
Mutual funds, AIFs etc. are not tax-efficient solutions for the USA and Canada-based NRIs. There are more straightforward options to...
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WACC, the most debatable topic in Finance
Any asset can be valued by discounting its future cash flow via a discount rate. This discount rate is called the weighted average cost...
Why equity investing can’t be taught but only learnt?
Recently I completed 10 years of running my investment firm. I carried a long history of big corporate baggage when I started my work....
How to identify consistent compounders?
Before we understand how to identify consistent compounders, we need to know what consistent compounders are. These are those companies...
What is the margin of safety?
The margin of safety is the difference between the fair value of a stock and its market price. Warren Buffet says, ‘price is what you...
What should be the price?
After you have studied the business and industry, you understand the prospects. Once you are confident of the prospects of the business,...
Does the company have a suitable organizational structure and management depth?
An organization's culture is the personality of a company just like individuals have personalities. What is organizational culture? An...
Does the company have a rational capital allocation policy?
What is capital allocation? In simple terms, it is how intelligently capital is invested. When a promoter starts there is a certain...
What is the company’s growth plan?
One must understand the opportunity size and look at the company’s growth plan to tap into the opportunity. Capacity expansion If a...
What are the addressable market opportunity and their key drivers?
This is a very important aspect to research the kind of themes that can play out in the future. Someone who had invested in Colgate in...
Does the company enjoy an Economic Moat?
An advantage that the company enjoys in comparison with the competition. What is an Economic Moat? A term given by Warren Buffett means...
What is the competitive landscape?
As the level of competition and regulation in any sector increases, the fortune of that sector gets impacted. Type of competition Perfect...
How to calculate the return of a company?
There are many ways to assess the return profile of a company starting from readily available data to a more complex calculation. Return...
What are the company’s cost and margin structure?
The investor must understand the past cost and margin structure and changes in the same. The purpose is to look at the long-term trends...
Are the company’s terms of trade favourable? Is Cash flow healthy
The investor must assess whether the company has reasonable bargaining power with its customers and suppliers. Additionally, ensure that...
Is the company profitable? If not, is it expected to emerge?
You allocate capital to make a return on it. This is applicable to any business irrespective of size. Let’s say someone selling food on a...
Is the company’s business model understandable?
In simple terms how does the company makes money? Unless you understand what generates cash for the company, you cannot think of...
What is the history of the company and management?
Before starting the analysis, you have to look at the company’s background and management. You need to know what is the business of the...
Special situation investing
Joel Greenblatt’s book “You Can Be a Stock Market Genius…” beautifully explains event-driven investing also called Special situation...
Turnaround investment strategy
Investing is all about the unknown future. More unpredictable the future, the better maybe the investment returns. Often an investment...
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