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 […]
Gold is under tremendous pressure internationally, so India may also see Rs. 25000 (just speculating, actually no clue) but Swaminathan A Aiyar says so in Economic Times. http://economictimes.indiatimes.com/opinion/columnists/swaminathan-s-a-aiyar/gold-to-be-a-lousy-investment-in-the-next-decade/articleshow/19537567.cms I am not commenting on the price of gold at all. I do not think that to be a good investor you need to be playing the […]
How many of you know what is the Wimbledon effect? It is a tennis tournament played in England. The crowds come from all parts of the world, but is largely English. The ball boys, girls, commentators etc. are mostly English (well well these days things are changing!), but one thing is certain, the winner […]
I do not know much about the other industries, but the financial services industry has a lot of interesting behaviour… The life insurance industry had a product called Classic Endowment Policy. This was a compulsory saving and risk cover product where the returns were a function of how well the fund was managed, how the […]
If you are a Tata Motors watcher, the sales of Nano should worry you, right? Well, not so fast. The sales of Nano will not do any great magic to the sales of Tata Motors. Nor will it affect the margins. To make an impact on the books of Tata Motors, Nano has to sell […]
You have heard this many times…right? The rich get richer..why do you think this happens? Well it is because whenever we buy something we pay a price, right? Well let us say you go to a hotel where a ‘masala dosa’ is sold to you for Rs. 75. Immediately your mind goes to the costing […]
From times immemorial banking has been a fantastic business. Ask the Marwaris and the Chettiars. It is a simple business too. Borrow money at 3%p.a. lend it at 6%p.a. and keep the 3% margins. If I am not wrong it used to be called the 3-6-3 rule of banking. This rule said borrow at 3%, […]