Monthly Archives - February 2017

Reinventing profit numbers

Traditionally profit numbers have been investigated only from accounting profit perspective and there has not been any cautious efforts made to associate profit numbers with the risk. Economic profit calculated through residual income approach is obviously an improvement as profit numbers are evaluated on a risk-adjusted basis. Net profit or comprehensive profit numbers do assemble numbers which are either non-synchronous with the business model or which are not sustainable in the longer run. Obviously comprehensive income is an improvement over [...]

February 25, 2017 By BMBA 0 Comments Read more...

Is Cash really the king?

Traditional finance textbooks talks about the supremacy of cash flow based accounting. Cash flow based accounting considers time value of money, it considers the quality of cash flow and it is supposed to be less vague a concept. There are a number of allegations often raised against accrual based accounting; at times regulators did not allow to depict the business reality; at times while preparing the book of accounts one needs to make too many estimations. So, even though [...]

February 22, 2017 By BMBA 0 Comments Read more...

India: Development and Injustice

India’s rapid economic growth has lifted 140 million people out of poverty in the past decade but many of its people still lack access to electricity and toilets, as per OECD (Organisation for Economic Cooperation and Development). GDP per capita has risen by more than five percent per year since the mid-1990s and reforms introduced since Prime Minister Narendra Modi’s election in 2014 have “brought a new growth impetus and improved the outlook”, OECD said. But this impressive growth rate [...]

February 17, 2017 By BMBA 0 Comments Read more...

Becoming Warren Buffet

It was a HBO documentary that I recently saw. It was based on true incidents on Mr. Warren Buffet’s life. The documentary’s basic focus was not only on Buffet’s investment choices but also on his personal life. When you generally watch an average movie, you do not carry much with you to home. But on several aspects that documentary is remarkable and will remain close to my heart. Investment is a knowledge driven game. Buffet focuses on buying mispricing (undervalued [...]

February 8, 2017 By BMBA 0 Comments Read more...