tips by warren buffet /investment/financial awareness

TIPS BY WARREN BUFFET

NO SAVINGS- Do not save what is left after spending, but spend what is left after saving.

ON SPENDING- If you buy things you do not need, soon you will have to sell things you need.

ON EARNING- Never depend on single income, make investment to create a second source.

ON INVESTMENT- Do not put all eggs in one basket.

ON EXPECTATION- Honesty is a very expensive gift. Do not expect it from cheap people.

ON TAKING RISK- Never test the depth of the river with both the feet.

·         When something bad happens, you have three choices. You, let it destroy you, or you can let it strengthen you.

·         Past is a waste paper, present is a newspaper, and future is a question paper, control the present, and secure the future.

·         We used pencil when we were small but now we use pens. Do you know why? Because mistakes in childhood can be erased but not now.

·         Our eyes are placed in front because it is more important to look ahead to look back.

MAS Financials Servies Limited IPO

               IPO Details
Application for Retail 32Shares | ₹ 14,688/-Price Band & Lot Size₹ 456 - 459Net Issue Size₹457 Cr - ₹460 Cr 

Company background: 
MAS Financial Services (MAS) is a Gujarat based NBFC, which is two decades old. It is active in 6 states including NCT of Delhi. It primarily lends to Micro Enterprises (ME) and SME, which contribute 60% and 23% of its AUM respectively. Company’s business and financing is in five categories i.e. micro-enterprise loan, SME loans, two wheeler loans, commercial vehicle loans and housing loans.

Company Insights
1. MAS had begun its journey with a clear focus to lending Micro Enterprise and gradually expanded its offerings to two wheelers & CV, SME, Housing finance and recently extended loans to the agricultural input and equipment segment.
2. Focused approach helped AUM to grow at 33.4% CAGR over FY2013-17.
3. Company has been delivering healthy average ROE (28%)/ROA (3%) over the last five years.
4. MAS is well capitalized with strong internal capital generation ability, present high CAR and IPO proceeds

Five strategies to maximize returns/defensive investor/enterprising investor/stock market/analysis.

                                    

                                                        Types of investor-

DEFENSIVE	ENTERPRISING
Create a Permanent portfolio	Continuously research
Not decision making	Decision making
Emotional, fear.	Risk taker, patience.
Average return	More than average return

             Five strategies to maximize returns

                     Strategy 1. Invest in index fund. For defensive investor

                     Strategy 2. Company analysis, company having

·         Minimum 500$million revenues

·         Current assets twice more than current liabilities.

·         Long term borrowing not more than net current assets.

·         Company should have positive net profit from last 10years and should have never missed dividend payout in 10 years.

·         Minimum one third increases in EPS over 10 year basis.

·         Price of the stock should not be more then 15 times of earnings and not more than 105 times of book value.

·         No. of stock 10-30

·         This strategy is also for defensive investor.

  Strategy 3. For enterprising investor

·         Current assets minimum 105 times of current liabilities.

·         Debt not more than 1.1 times of current assets.

·         No loss in 5 years

·         Regular dividend paying.

·         Some growth in earnings

·         Stock price should be less then 1.2 times of fixed assets.

·         No. of stocks minimum 20.

                   Strategy 4. More risk more reward

·         Stocks trading below their  NCAV (Net current asset value)

·         Avoid those who are not profitable in last 2years

·         Number of stocks 30

                   Strategy 5. Situation investing

·         Smaller company acquired by larger one.

·         Companies involved in legal troubles

·         Snip off

·         No. of stock 2-3

·         Strategy should be used in combination with other strategies.

                   SOURCE-THE INTELLIGENT INVESTOR   

                                     BENJAMIN GRAHAM             

*investment on market risk before investment financial advisory mandatory.

Interconnect user charges (IUC): telecom sector

                                #IUC

 Interconnect user charges (IUC) what is it??????

If we talk about simple language Jio user call to Airtal user so Jio pay some charges to Airtal.

This charges start in 2002-03 it is a 0.50 paisa then decries charges after some year 0.20 paisa. In 2014-15 this charges is renew it is a 0.14 paisa. In 2017 TOI thing to renew this charges it will be .6 paisa and in 2020 it will be zero.

Why IUC introduce?????

IUC is introducing for recover the cost and charges. But companies convert this charge in to profit.

Who have a profit????

Small company and new company they inter into the market they have a profit. Because if charges is decrease small company paying money is also decries. Loss to large company because their revenue is decrease.

What is current scenario?????

First position on the Airtel, then Vodafone, then Idea or Jio. If decries the IUC more benefit to jio. Because jio user call to other network jio pay IUC to other network is decrease. Vodafone and Idea merger complete in December. It is a largest market share and customer base company after merger. So they have loss in revenue  

Benefit

·         If new company inter into the market they have a benefit.

·         Small customer base companies have a benefit.

·         Customer have a profit tariff is available on cheap prices.

SBI Life Insurance Co Ltd IPO

         IPO Details
Minimum Application for Retail21 Shares | ₹ 14,700/-Price Band & Lot Size₹ 685 - 700Net Issue Size₹8,220 Cr - ₹8,400 Cr.

Company background: 
SBI Life Insurance was established as a joint venture between the state bank and BNPPC in 2001. It has a leadership position with 20% market share in New Business Premium in FY17. It has also increased our market share of New Business Premium generated among private life insurers in India from 15.9% in FY15 to 20% in FY17

Investment rationale
1. Among the Pvt insurers, SBI retained its No.1 position since last 8yrs in New Business Premium.
2. SBI Life has been reporting strong growth in New Business Premium, with 38.9% growth in FY17 and 3yr CAGR of 28.3% v/s industry growth of 26.2% and 13.5% respectively
3. SBI’s network of 24000+ branches gains strong AUM growth of 17.1% while ICICI prudential is 10.7% and HDFC life gains 16.9% over FY15-17
4. SBI Life has a well balanced portfolio consisting of ULIP: 50.5%, Non participating: 34.7% and Participating:15.4%
5. SBI Life is well capitalized with a solvency ratio 211% (mandatory -150%)

Six basic tenets of Dow Theory

1. The market has three movements.
2. Market trends have three phases.
      * Accumulation
      * Public participation
      * Distribution
3. The market discounts all news.
4. Stock market average must confirm each other.
5. Trends are confirmed by volume.
6. Trends exist until definitive signals prove that they have ended.

How to Invest in an IPO????????

                       

An Invest in Initial Public Offering (IPO) some steps are their.

·         Open DEMAT Account from Broking Company.

·         Then your Bank Account linked with DEMAT Account.

·         Login to your Net Banking Account.

·         Select e-services of the Bank.

·         Then select DEMAT then IPO

·         Select one of the IPOs you want to apply.

·         Enter your depository details. NSDL or CDSL

·         Fill some other Information like DEMAT Account Number, mention up to 3 bids, etc

·         Place and confirm your order.

IPO - ICICI Lombard General Insurance Co Ltd

Retail22 Shares | ₹ 14,542/-Price Band & Lot Size₹ 651 - 661
Net Issue Size₹5,651 Cr - ₹5,700

Company background: 
ICICI Lombard is the largest non-life private sector insurer in India. It is a JV between ICICI Bank and Fairfax Financial Holdings Ltd of Canada. Backed by strong parentage, and under penetration of non-life insurance business in India.

Investment rationale
1. It has leadership position among private general insurers
2. It has higher share of business from the low loss ratio segments
3. Growth driven by strong parentage & wide distribution network
4. It has a strong solvency ratio as compared to prescribed by IRDA

DRIP MODEL MARKETING

                DRIP MODEL
*Differentiate - Be different from the competitors.
Example - MC Donalds vs burger King
*Remind- who are we? What do we stand for.
Example- more advertising and remember the customer by symbol, tagline, etc
*Inform- what's new? Features- benefit.
Example- Samsung and apple wireless charger.
*Persuade- what is it right for you?
Example- Maggi relaunched in advertising persuade the product.

what is mutual fund and NAV net assets value

                     UNDERSTANDING MUTUAL FUND

Mutual fund is the financial product of investment. A mutual fund is a professionally managed type of collective investment scheme that pools money from many invests and invests it in stock, bonds, short-term money market instruments and other securities.

Every mutual fund is managed by a fund manager. Fund manager using their management skills and research work to much better return then what an investor can manage on his own. Mutual fund investor is also known as a mutual fund shareholder or a unit holder. Investor receives a unit behalf of investment value.

If any changes in capital market instrument (shares, debenture, etc) its reflect in the NAV (Net Asset Value)

Example- 

·         Market value of a asset  Rs.500000

·         Total number of unit issued  25000

·         NAV of the scheme - 500000/25000 =20

·         If investor A invest Rs.1000 so allotted unit 50

TOP TWENTY INDIAN INSTITUTE OF MANAGEMENT, IIM

         TOP TWENTY INDIAN INSTITUTE OF                                                    MANAGEMENT

1             Indian Institute of Management Calcutta

2              Indian Institute of Management Ahmedabad    

3              Indian Institute of Management Bangalore         

4              Indian Institute of Management Lucknow           

5              Indian Institute of Management Kozhikode

6              Indian Institute of Management Indore

7              Indian Institute of Management Shillong             

8              Indian Institute of Management Rohtak               

9              Indian Institute of Management Ranchi

10           Indian Institute of Management Raipu

11           Indian Institute of Management Tiruchirappalli                 

12           Indian Institute of Management Kashipur           

13           Indian Institute of Management Udaipur

14           Indian Institute of Management Nagpur                              

15           Indian Institute of Management Visakhapatnam              

16           Indian Institute of Management Bodh Gaya       

17           Indian Institute of Management Amritsar            

18           Indian Institute of Management, Sambalpur

19           Indian Institute of Management, Sirmau

20           Indian Institute of Management, Jammu

RECENT DEVELOPMENT IN GLOBAL MARKET #FINANCIAL MARKET

                 RECENT DEVELOPMENT IN GLOBAL MARKET

• Money Markets- money market is short term investment market in this market include treasury bills, commercial papers, certificates of deposits, MMMFs, etc. Recent development in money market establishment of the DFI The Discount And Finance House Of India(DFHI),MMMFs money market mutual fund, electronic transaction, Development of new market instrument ex-MMMFs, bonds, etc
• Foreign Exchange Markets – The market where the commodity traded is currencies. Price of each currency is determined in term of other currencies. Rs. 64 per one USD. Major currencies USD, EURO, YEN, POUND, etc. foreign exchange market has emerged as the largest market in the world. New products and instruments, development of institutional and market, increase transaction volume, decline in transaction costs, efficient mechanisms of risk transfer.
• Equity Markets- Resent development in equity market is creation of market regulation, screen based trading, reduction of trading cycle, short selling, and research in security market.

·         Derivative Markets- Resent development in derivative market are

                                     i.            Index future contracts introduced 2000

                                   ii.            Index option  2001

                                 iii.            Stock option 2001

                                 iv.            Commodity future 2008

                                   v.            Currency option  2010

Steps in marketing communications program development

Steps in marketing communications program development
*Identify target audience.
*Determine objectives of communication.
*Design the message.
*Select communication channels.
*Established the budget.
*Select the marketing communications mix .
*Measure results.
*Manage the IMC process.