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What Is Your Free Cash Flow Per Month?
Introduction Have you ever wondered what the financial health of your personal life looks like? In the world of business, companies use a key metric called Free Cash Flow (FCF) to measure how much money is left after covering all necessary expenses. But what if we applied this idea to personal finance? Understanding your “free…
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What Is Your Moat?:
What Is Moat? “A truly great business must have an enduring ‘moat’ that protects excellent returns on invested capital. The dynamics of capitalism guarantee that competitors will repeatedly assault any business ‘castle’ that is earning high returns. Therefore, a formidable barrier such as a company’s being the low-cost producer (GEICO, Costco) or possessing a powerful…
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How to Use the Earnings Yield Yardstick?
What is Earnings Yield? Earnings yield is the ratio of a company’s earnings to its market price. In essence, it shows what percentage of your investment in a stock is ‘earned’ back annually in profit. The formula is : Earnings Yield = (Earnings per Share (EPS) / Stock price) × 100 For example, if a stock is priced at…
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Margin of Safety: An Engineering Perspective
“The margin of safety is always dependent on the price paid. It is available for absorbing the effect of miscalculations or worse than average luck.” — Benjamin Graham, The Intelligent Investor Source: https://www.sciencedirect.com Introduction I recently attended a seminar on compressors, where we discussed anti-surge control and its implementation through control systems. Compressors are critical…
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Camel vs Elephant: A Comparison Through Capex:
I love elephants as animals because they are huge and look majestic. I’ve heard many good things about elephants, such as their ability to walk long distances daily and their exceptional memory. On the other hand, camels might not look as impressive, with their thin legs, uneven backs, and large lips. But camels are renowned…
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Pizza A vs. Pizza B: A Simple Way to Understand Outstanding Shares:
The picture above shows two pizzas, Pizza A and Pizza B. Both are the same size, but Pizza A has 8 slices, while Pizza B has 16 slices. Pizza A can be shared among 8 people, and Pizza B can serve 16 people, though with slightly smaller portions. Which would you prefer: Pizza A or…
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Striking Rate vs. Batting Average in Investing:
I was born in India in the 80s, so cricket has always been close to my heart. Like many, I grew up idolizing Sachin Tendulkar, praying he would stay on the pitch longer than anyone else. If Sachin got out, it often felt like India’s chances of winning were fading. He was a model of…
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Don’t Lose Your Thumb:
Everyone in life needs a teacher to learn and thrive. We fondly remember some of the teachers from our school days, but as we grow up, marry, and have children, we often think we’re ready to guide the next generation ourselves. But are we truly prepared? Don’t we still need guidance as adults? I believe…
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