March | 2011 | wealthymatters

Shri Yantra

March 8, 2011 Leave a comment

Shri means wealth.It is also a word used to show respect.Yantra means instrument.

The Shri Yantra is formed by nine interlocking triangles that surround and radiate out from a central point. Together the nine triangles are interlaced in such a way as to form 43 smaller triangles.

The Shri Yantra is considered to be very powerful and is believed to be the yantra of Goddess Mahalakshmi.Mahalakshmi is the Indian Goddess of wealth,prosperity and good fortune.She is believed to manifest herself in the place where this yantra is kept and worshipped.As a result all wishes come true and one’s life is changed for the better.This Yantra is believed to be helpful in getting rid of debt.

Many temples in India, including the Tirupati Temple,the richest one in India, are constructed on the basis of this sacred geometry.

Many people keep and worship a Shri Yantra at home and/or their place of business. Read more of this post

Filed under Tidbits, Tool Kit Tagged with get rid of debt, Goddess Lakshmi, Goddess Mahalakshmi, Goddess of Good Fortune, Goddess of Wealth, good fortune, Hinduism, Indian, Mahalakshmi Mantra, Mantra, postaday2011, prosperity, RandomBlog2011, Shri Yantra, Tirupati Temple, wealth, Worship, Yantra

9 Ways To Make Money On The Stock Market

March 7, 2011 6 Comments

Here are 9 ways listed by Whitney Tilson to pick diamonds in the stock market:

1. Out-of-favour blue chips. Even the world’s greatest companies encounter problems or otherwise fall out of favor. Correctly differentiating between those suffering temporary rather than permanent issues is the key to success here. As long as the positive fundamentals of the company’s business remain intact, and new management is willing and capable of bringing the company on track buying out of favour blue chips can be very profitable.

2. Distressed industries. Buying a good company in a distressed industry is often a great way to make money.

3. Turnarounds. Turning around a broken business is difficult and often takes much longer than expected — but when it occurs, a stock can rise many-fold.

4. Overlooked small caps. Among the thousands of publicly traded stocks that analysts don’t cover are fine businesses that are cheap because either no one is paying attention to them or their stocks are thinly traded. Read more of this post

Filed under Paper Assets, Theory, Tool Kit Tagged with activist, blue chips, cheap stocks, distressed industries, growth, growth investor, growth stocks, momentum investor, Money, postaday2011, RandomBlog2011, small caps, stock investing, stock market, stock share, turnarounds, valuation, value investing, Whitney Tilson

5 Ways To Lose Money On Stocks

March 7, 2011 Leave a comment

Here are 5 situations that Whitney Tilson lists where investors can lose money:

1. The game has changed.Bargain Hunters and Bottom Fishers Beware!There’s a fine line between opportunity and trouble when a once-strong business goes into decline.

2. High and rising debt. Value investors are naturally drawn to companies in trouble — that’s what makes stocks cheap if the difficulties prove to be temporary. But too much debt can ruin even the best-planned turnaround.

3. Consumer fads. When investors extrapolate far into the future what are highly likely to be impossible-to-maintain growth levels, trouble follows.

4. Serial acquirers or mega-acquisitions. Given the research showing that a significant majority of acquisitions are value destroyers for the buyers, it’s remarkable how frequently investors get excited about roll-up stories or big acquisitions.

5. Aggressive accounting. The gray areas in accounting leave managements considerable leeway in how aggressively or conservatively to represent company operations. When a company’s accounting treatment creates more questions than answers, something is usually wrong.

Filed under Paper Assets, Theory, Tool Kit Tagged with accounting, acquisitions, debt, fads, postaday2011, RandomBlog2011, Stock Share Investing, Whitney Tilson

Why it’s better to invest in stocks rather than buy a business

March 6, 2011 Leave a comment

The following is a repetition of material found here https://wealthymatters.com/2011/03/06/the-dhandho-investor/ . But I think the material is significant enough to bear repetition.This is a list of reasons why a Dhandho Investor who wants High Returns but Low Risk should prefer to buy stocks rather than businesses.

I am rather indiscriminate when it comes to businesses.I would rather make money from a whole bunch of businesses rather than content myself with one source.And as the Indian economy explodes and money is made in so many different ways it’s so hard to pick just a few businesses to focus on or to put money in.The list below is my way of consoling myself for all the businesses I will never own.

With an entire business, you have to run it, or find someone who can. To be successful, this requires an enormous amount of dedication.
In the stock market, you’re buying a business that is already staffed, yet you still get to share in the earnings.
With whole businesses, often the sellers know a lot more about the business than the buyers, and furthermore the prices offered are not usually as attractive as they can be in the stock market. Read more of this post

Filed under Paper Assets Tagged with buying a business, buying stocks, High Returns Low Rsk, Indian Ecoomy, RandomBlog2011, The Dhandho Investor

Advice on Buying a Business

March 6, 2011 Leave a comment

This is a repetition of material from the last post.I just think the matter is important enough to merit a post by itself.This is Mohnish Pabrai’s list of to-dos when buying a business.By paying attention to the following 9 principles of the Dhandho Framework you ensure that you bear the least risk and have the highest chance of a big pay-off.Of course, buying shares is buying parts of a business so you can apply the same criteria to come out ahead.

Buy an existing business: you get a defined business model and have to invent nothing new.
Buy businesses in simple industries with a low rate of change: buy businesses that are necessary and not about to be replaced any time soon.
Buy distressed businesses in distressed industries: the very best time to buy a business is when it is hated and unloved.
Buy businesses with a durable competitive advantage: this advantage can come from being low-cost to having a brand to having captive customers.
Bet heavily when the odds are in your favour: if you must, wait for several years till the right opportunity comes by, then invest big-time.
Focus on arbitrage: exploit any discrepancy between price and value.
Buy businesses at big discounts to their intrinsic values: the odds of a permanent loss are low when this approach is followed.
Look for low-risk, high-uncertainty businesses: the uncertainty leads to severely depressed prices.
It’s better to be a copycat than an innovator: “innovation is a crapshoot, but scaling carries far lower risk.”