MBA degree and expectations – Back to School

Is doing MBA a good option? I think the answer is yes.  Two things have to happen. You should go to a college whichblog has good faculty, and attracts good students. So if you are good enough to get into an IIM A who is to even question “should you go and do your MBA?” The answer is obvious, is it not?

For the not so good / great student the decision is far more difficult to make. Should an ordinary student get into a “d” grade MBA? Again the answer seems to be yes. No, not because they will learn too many things, but because it is almost impossible to get any job with just one basic degree.
Continue reading “MBA degree and expectations – Back to School”

Some Great Examples of Good Investment:

Warren buffet: A good business that can be purchased for less than the discounted value of its future

George Soros: An investment that can be purchased (or sold) prior to a reflexive shift in market psychology/fundamentals that will change its perceived value substantially.

Benjamin Graham: A company that can be purchased for substantially less than its intrinsic value.

Some other examples are:

The Corporate Raider: Companies whose parts are worth more than the whole. Continue reading “Some Great Examples of Good Investment:”

Welcome the Uncertainty

Prof Aswath damodaran is an authority on Corporate Finance, sharing his latest post where he defines why we should welcome the blogUncertainty. If you can value companies early in the life cycle, you cannot do so with any degree of confidence. I concede that point, but that is exactly why I would try to value them!

I know that statement makes little sense, but to solidify my argument, take a look at the following list of five assets/entities and rank them on the basis of the confidence you will feel in valuing each one.     Continue reading “Welcome the Uncertainty”

What is Private Equity?

Recalling the movie Other People’s Money . as I was more curious to know about the heated debate in US whether Private Equity to be termed 813530as Hero or Villan. Those of you who has seen the Wall street series and remember Gordon Gekko,a character resembling popular culture for unrestrained greed (with the signature line, “Greed, for lack of a better word, is good”), often in fields outside corporate finance.

Let us try to understand Private Equity (PE) :

Private equity generally make investments in the operating companies through a variety of loosely affiliate investment strategies leveraged buyout, venture capital and growth capital.Typically, a private equity firm will raise pools of capital, or private equity funds that supply the equity contributions for these transactions. Continue reading “What is Private Equity?”

The Power of Passive investing

Guest post: The Power of Passive Investing

images-1Investing in the stock market is a bit counter-intuitive. It would seem that the investor that puts in more time and effort managing his investments should have an edge over other investors. However, this extra effort actually can create serious problems. A more hands-off strategy typically works out better for most investors. This is the power of passive investing.

Active vs. Passive Investing

An active investor is trying to get above average market returns by constantly buying and selling stocks. He hopes to find the most profitable stocks on the market through research and market timing. The problem with this is that only half of investors in the stock market can be above average each year. Continue reading “The Power of Passive investing”