Manoj Arora's Blog, page 12

26 Inspiration Lessons from the book 'Ikigai' by 'Hector Gracia & Francesc Miralles'

Ikigai is a Japanese concept that means "a reason for being." The word "ikigai" is usually used to indicate the source of value in one's life or the things that make one's life worthwhile. The word roughly means "thing that you live for" or "the reason for which you wake up in the morning." Each individual's ikigai is personal to them and specific to their lives, values and beliefs. I,

Treasury, Outstanding, Floating and Restricted Shares

A thing as simple as number of shares of a company can get as complicated as understanding the different types of shares company is reporting viz Treasury, Outstanding, Floating or Restricted Shares. Let us understand the difference between all these types of shares and their significance. INTRODUCTION Finance has a knack of making simple things complicated, and vice versa. So, you always

10 Insightful Lessons from the Documentary 'Inside Bill's Brain'

We have been publishing life lessons from various best selling books for a long time now. Acknowledging that we must change with changing times, this is our first attempt on publishing lessons from a Netflix documentary.  For those who have missed out reading some of our posts which captured lessons from some of the best selling books, they can click here to read the book lessons. This

Statement of Cash Flow and Free Cash Flow

A Cash Flow Statement gives a good clue on company's financial health. But understanding Free Cash Flow (FCF) is even more penetrating. Read on.. Background Every business organization, irrespective of the size, structure, and nature, needs cash for running the business smoothly. In the absence of sufficient cash, the business may not be able to fulfill long term and short term

Analysing Promoter Shareholding Patterns for your Stocks with Real Examples

It makes sense to keep track of what promoters are doing with their shares. It may give you a clue about where the company is headed. Let us see how to look at promoters shareholding patterns (and beyond just the data) with real life examples. Background We looked at promoter pledging of shares and how it impacts the quality of management for the stock that we are trying to analyse. 

7 Reasons why Kalpavriksha is one of the World's Most Transparent Organisations

This was a dream project, and one of my strongest reasons to take Financial Freedom. Started in 2016 with 2 trees in a nearby park, today we have reached close to 2,000 trees spread across the length and breadth of this great nation - with donations landing from across the globe. What makes Kalpavriskha one of the most trusted and transparent organisations, not only in India, but across the

What is Economic Moat and 5 Ways to Spot Companies with Moat

You can crunch all the numbers, but numbers will always represent history. Ironically, you are buying Stocks for future gains. And history can never guarantee future. Fortunately, MOAT is one of the factors that tries to defend the historical numbers - in the future. Background If numbers only represent history, and we are investing in Stocks for future gains, then what are the tools

Inflation - A Destructive Reciprocal of Compounding

Albert Einstein once defined Compounding as the 8th Wonder of the World. 100% agreed.  I would define Inflation as a 'Destructive Reciprocal of Compounding'.  Inflation is as powerful as Compounding (assuming you understand the power of compounding) - just that it is destructive in nature, and is ignored even more than Compounding.  If you think that you understand Inflation even today,

Repo Rate vs MCLR linked Home Loans

Banks give money to individual seekers like us, as well as to businesses - as a loan.  From where do Banks get the money to give us such loans? They get it through various deposits that their clients (like us) make. And from where else? Major chunk of the money that the bank gets, comes from the federal bank i.e. RBI in our case. What is the rate of interest that RBI charges from the banks?

The Cost of Lost Opportunity

During vacations, you may decide to visit a hill station, but it comes at the cost of losing the charm of a serene beach. Alternatively, you might decide to go and explore the historical monuments to marvel at their architecture, but it also comes at the cost of losing the fun and awesomeness of visiting a modern theme park. Here is another one. You might not take any decision, or decide not