What are the different types of dividends?
What are the different types of dividends?
All things equal, investors generally prefer companies that pay regular dividend, going by the idiom “A bird in hand is worth two in the bush”.
Simply put, a dividend is the distribution of profits by a company to its shareholders.
Explained: What is activist investing?
Activist Investors are advocates of change in organisations by taking stakes in listed companies.
The strategy undertaken by the Activist Investor to achieve their goal is to take a smaller stake in the...
Why are investors psychologically uncomfortable with booking losses?
Why are investors psychologically uncomfortable with booking losses?
Loss Aversion Bias: “Holding on to the loser but getting rid of the winners”.
Simply put, the tendency to avoid losses is what drives the majority of investment decisions. Based on the...
The 80/20 rule has the power to explain your investment returns
The 80/20 rule has the power to explain your investment returns
Principle states that 80 per cent of the results come from 20 per cent of efforts.
20 per cent of your investment will dominate (80 per cent or so) of your portfolio returns. However, it is...
Index Funds or ETFs: Where should you put the money?
Index Funds or ETFs: Where should you put the money?
Both Index Funds and ETFs have performed well historically. Before deciding where to invest your money, it...
Explained: What is operating leverage and its impact on the margins of companies
Explained: What is operating leverage and its impact on the margins of companies
Operating leverage is a useful metric to find out how well a company can squeeze out more profit from the same amount of fixed cost.
Operating leverage is a useful metric to find out how well a company can squeeze out more profit from the...
ABC of ESG Investing
ABC of ESG Investing
ESG simply stands for Enviromental, Social and Governance.
ESG simply stands for Enviromental, Social and Governance. Investors are increasingly applying...
ROIC vs ROCE: Decoding the difference between key performance ratios
ROIC vs ROCE: Decoding the difference between key performance ratios
Which one is a superior metric? Let us find out.
Return on Invested Capital (ROIC) and ROCE (Return on Capital Employed) are financial ratios to understand...
Economic Moat: Learn Warren Buffetts investment style
Economic Moat: Learn Warren Buffetts investment style
A moat is a deep, broad ditch, either dry or filled with water, which is dug and surrounds a castle, fortification, building or town, historically to provide it with a preliminary line of defence.
Every successful business recognises that its biggest threat will come from competitors and that keeping...
What should be your stock picking strategy?
What should be your stock picking strategy?
The recent dream run on the stock market has lured investors across demographics, occupations to taste the myriad flavours of stocks on display on the bourses.
Every strategy has the potential for yielding desired returns provided the strategy is well researched,...