Sunday, February 6, 2011

Of Strippers, stock markets, dating and everything under the sun..


If you've read any of my previous blogs, I'm guessing by now you have an idea of what the topic is gonna revolve around. Plus, I must tell you...I'm really bad at writing down stuff...I'm just better at talking about it..

So whats common between stocks and strippers. Well apart from the fact that they both start with an "s".....a lot more. In any case, this blog is not about strippers in particular...I just put the word in there to make it sound "sexy". But, yes it is about stock markets and value investing.

Someone once told me "It takes potential to recognize a potential", and yes that's true in everything we do. Right from the point when as kids we pick who our friends would be...till the time we choose our life partner.

My theory is that at any time you need to make a choice, you should think like a good stock picker. You need not pick the most glamorous stock or the one that is expected to give the highest return, but you need the one that has the "potential" to give the highest returns.

Hope you get the point...!!!

PS: Use the above theory at your own risk....

Saturday, February 5, 2011

You might wanna get a life..If....


1. You call your friend list on facebook your "portfolio", and adding/removing friends is called "re-balancing the portfolio".

2. When you borrow money from friends you call it "raising capital"

3. When you lend money to friends you actually plan to charge interest

4. When you do someone a favor you record it under "goodwill" and plan to test it for impairment at-least annually

5. When you purchase groceries, you plan to "depreciate" them over their useful life so that you don't have to record an immediate expense

6. You are not interested in dating because you think the NPV of the project is negative, and you have somehow managed to calculate it.

7. You think marriage is like an IPO and you actually conducted due diligence on your partner

8. You dream of a world where they have 3-D excel

9. You think stock charts are "sexy" and you get aroused at the mention of candlesticks

10. When you go out to party you "capitalize" your bill and create an intangible asset instead of recording an expense.

11. You've thought about opening a clothing brand and calling it "GAAP"

12. You can classify people into assets and liabilities, both current and non-current.

13. Going through a 10-K is called "light reading"

14. When you hear the word "models", Excel comes to your mind.

15. You can relate anything in the world to finance.

And the biggest sign you might be need to get a life: You laughed at at-least 5 of the above points.