Investing in a company just because they are earning profits is a bad idea. In our previous article, we learned about Warren Buffett’s investment strategy. We understood that analysing financial statements is not enough. To make a better decision, we need to check qualitative aspects too. There are various tools […]
How to Use Return on Capital Employed (ROCE) to Select Superior Stocks?
Return on Capital Employed (ROCE) is a type of profitability ratio used in analysing stocks. It analyses how much return a company generates for its investors. But wait… isn’t that what Return on Equity (ROE) tells you? No. This is the main difference between ROE and ROCE. As we know, […]
7 Books Warren Buffett Says is a Must Read (for beginners)
Warren Buffett is an avid reader. He reads almost 500 to 600 pages every day! His annual letters to his shareholders always include a couple of book recommendations. He once told a group of MBA students at Columbia Business School in 2000 – ‘Read 500 pages like this every day. […]
How to Use Price to Book Value (PB Ratio) for Stock Analysis?
Warren Buffett is the sixth richest man in the world. His net worth is a whopping US $100.6 Billion! That’s roughly Rs 74,27,85,13,00,000. Do you know what’s more shocking? It’s that a majority of this net worth is from the stock markets. One would think he has a magic stone […]
What is Rights Issue of Shares in India – Types and Meaning
In this article: 1. What is Rights Issue? 2. Different types of Rights Issues 3. Understanding with an example – Reliance Industries Rights Issue 4. Rights Issue advantages and disadvantages 5. How to apply for Rights Issue in India? What will a company do if they need extra funds to […]
Warren Buffett: Investment Strategy, Portfolio and Books – Biography
In this article: 1. Warren Buffett’s background 2. About Buffett and Graham 3. Buffett’s two investment rules 4. Warren Buffett’s Investment Strategy 5. Buffett and Coca-Cola 6. Best books about Warren Buffett 7. Warren Buffett’s Portfolio 8. End note Warren Buffett is one of the most respected investors of all […]
What is Interest Coverage Ratio? Formula, Meaning and Analysis
What is Interest Coverage Ratio? Formula, Meaning and Analysis Why do you invest in stocks? To make money, right? But wouldn’t you agree that there’s an equal chance that you can also lose money? After all, there is no mathematical formula to decide which stock will make money and which […]
What is ROE (Return on Equity)? – ROE Formula & DuPont Model
What do you look at while analysing a company? Do you invest in a company because of its sea facing office? Or because the CEO drives luxury cars? I believe the answer is a loud No! Return on Equity (ROE) is the first thing an investor must look at while […]
ICICI Bank Full Form, Ratio Analysis, Brief History & Other Details
What is the full form of ICICI Bank? – ICICI Full Form The full form of ICICI is Industrial Credit and Investment Corporation of India. It was established in 1955 at the initiative of the World Bank, the Government of India, and representatives of Indian industry. The principal objective was […]
Porter’s Five Forces – Explained with Examples!
As an investor, we read and analyse financial statements before investing in a company. We use various financial ratios to check a company’s financial health. But is that enough? Does it provide us a complete picture of the company? How do you decide if a company has a sustainable competitive […]