Posts

Showing posts from August, 2022

Warren Buffett's Investment Strategy.

Image
Image source: Stock Basket 1. Put quality first: Regardless of their low valuation, Warren Buffett never invests in struggling companies and only does so in companies with good financials. "It's far better to buy a wonderful firm at a fair price than a fair company at fabulous price," said Warren Buffett, sums up this idea. 2. Don't follow the herd:  According to Buffett, the best approach to investing is to completely disregard the herd and concentrate on identifying value on your own. The most crucial trait for a successful investor, according to Buffet, is a disposition that doesn't enjoy going with the flow or going against it. 3. Don't be afraid of a market correction: Buffet actually enjoys it because it offers the chance to purchase stocks at a discount. Buffet enjoys purchasing the dip and claims, "Opportunities are few and far between. Put out the bucket when it starts to rain gold, not the thimble." 4. Long-term perspective:  Bu...

Is Titan's share overvalued? Titan Company overview.

Image
Is Titan's share overvalued/overpriced?  Image source: GoodReturns The company has given 7.64% returns in the last month,17.8% returns in the last 3 months, 38.91% returns in one year, 129.78% returns in three years, and 321.63% returns in 5 years.  The company's yearly sales increase of 33% exceeded its three-year CAGR of 13.16%.  The stock returned 129.89% over three years, compared to a return of 60.42% for the Nifty 100. The data completely indicate that the company's growth and return that they generate for the investor are massively outstanding. Can we invest from this point?  let's figure out the expenses of the company. In the fiscal year that ended on March 31, 2022, the company spent 4.68% of its operating revenues on employee costs and less than 1% on interest charges.  This indicates that companies' internal expenses are very well managed and comparatively very low. Titan Company Ltd. is the fifth-largest watch manufacturer in the world a...

BNPL vs Credit Cards. is BNPL a scam?

Image
 Image source: Connective payments  BNPL ( Buy Now Pay Later) is one of the biggest scams happening with users. People think BNPL and credit cards are the same, but no, there is a lot of difference between them. It just looks similar to working. Let's clear that, how credit cards work. Credit cards are directly issued by the banks and they lend you their money. Simply, you are using the bank's money directly. Banks give you a specific 30 to 45 days period to return/repay that money without zero interest or you can also pay money in EMIs. If you didn't repay the money in that period then banks charges interest of about 24% to 48% p.a. as fees. But this bank's money when you use it shows in the bank's loan book. For example, if you use the credit card of XYZ bank and purchase RS5000 worth of anything then it will be recorded in the bank's loan book that RS5000 is lent to this specific person. Now you might get understood how credit cards work. Let...

Adani Group Also bought one more News Company.

Image
The media division of Adani Enterprises, AMG Media Networks (AMG Media), acquired a 49% share in Quintillion Business Media, which runs the business news website BloombergQuint. The transaction's value has not been made public. Quint Business Media and Bloomberg joined together to become BloombergQuint in 2016. Quintillion Media was established in 2014 as a digital media business by husband and wife Raghav Bahal and Ritu Kapoor. Bloomberg Media announced its intention to end its joint venture with Quintillion in March of this year. Bloomberg said that it would no longer co-produce content and instead distribute it in India under a licence. Quint Digital Media's subsidiary Quintillion Business Media, which owns BQ Prime. The agreement won't cover additional Quint Digital, such as Quint, Quintype Technologies, the News Minute and Youth Ki Awaaz. Source: law.asia 

Adani Group bought the 29.18% stake in NDTV but how did they do it?

Image
Adani Group bought the 29.18% stake in NDTV but how did they do it? Let's see.    This was the shareholding of NDTV before the Adani acquisition. Adani Group acquires NDTV indirectly. But how? Firstly, let's clarify who is RRPR and VCPL. Radhika Roy and Prannoy Roy is the founder of NDTV and they also named their company on their name RRPR Private Ltd. Here is the role of VCPL in this: In 2009, VCPL ( Vishvapradhan Commercial Pvt Ltd ) had given a loan to RRPR and in exchange for that, RRPR had given a convertible warrant to VCPL.  Convertible warrants are those which can be converted later into shares.    Adani Group bought 100% share in VCPL and VCPL had those convertible warrants of RRPL. This is how RRPR-owned by VCPL and Adani group took 100% share in VCPL so indirectly RRPL is owned by Adani Group. And RRPL has a 29.18% stake in NDTV. So indirectly Adani Group got a 29.18% stake in NDTV.  So your doubt may be cleared now. ...

Why is Retracement important and how to identify it?

Image
While trading, you might be aware of the breakout of support and resistance in the stock market. Here is a brief explanation of support and resistance in case you don't know: - Resistance is the level at which a stock can no longer rise. Support is the level below which a stock can no longer decline. If the stock prices continued to rise or fall, the resistance or support is referred to as a breakout. Many seasoned traders advise waiting for a retracement if the stock makes a breakout. (A retracement is a brief reversal of an overall trend in the price of a stock.) Retracement allows you the opportunity to buy, sell, or hold a position in that specific stock. There will then be a possibility that the trend will continue. Consequently, you can also reduce risk by lowering your losses and hence your risk-reward ratio will be perfectly balanced.  Thank you.

Why does the share market go up in the long run?

Image
It's a cyclic game. When you see a stock's price move up or down on a chart, that's supply and demand in action. If more people want to buy a stock (demand) than sell it (supply), then the price moves up. Conversely, if more people wanted to sell a stock than buy it, there would be greater supply than demand, and the price would fall.  Another detailed economic reason: The government prints money and this money comes into the market. So the peoples have more money than earlier and they start to spend more than earlier. As people start to spend more so the prices of goods rises. Hence, due to this inflation rises.  The rate at which inflation rises is on average 6% p.a. so the price of the goods also rises at the level of 6%p.a. Hence, the goods get costlier than the earlier so the profit also increases. If the people buy more, so the profits of the companies increases. And if the government is increasing the rate at which they print money so people have more and they invest...