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Should You Buy A New Car In December?

December 20, 2012 Leave a comment

wealthymatters.com Savvy car buyers always wait for the month of December to buy new cars as the manufacturers and their dealers offer exciting discounts during the year-end to clear inventory. This year, it is even better thanks to a depressed economy and sluggish car sales. For example, you can pocket a discount of close to Rs 75,000 on Ford Fiesta, Rs 75,000 on Fiat Punto, Rs 25,000 on a Wagon R, Rs 30,000 on Mahindra Verito, Rs 60,000 on Chevrolet Spark and so on.Interestingly, due to the rise in petrol prices, there is a huge demand for diesel cars this year. That is why the discounts are mostly on the slow-moving petrol models with little or no discounts on the diesel variants. Here is a list of the best deals in town: http://www.bsmotoring.com/storypage.php?autono=6110

So should you grab one of the current offers?Your decision should be based on how long you plan to use the car, how much you drive daily and after calculating whether the current discounts work in your favour. Read more of this post

Filed under Alternative Assets, Theory, Tool Kit Tagged with best car deals in Mumbai, buying a car, buying a new car, buying a new car in December, Chevrolet Spark, depreciation of car, Fiat Punto, Ford Fiesta, Honda City 1.5 SMT, Mahindra Verito, Maruti Sx4, petrol vs diesel car, postday, resale value of car, should you buy a petrol or diesel car?, Wagon R

Reasons Why Start-Ups Fail

December 16, 2012 2 Comments

1 Give up

When it comes to business success stories,a common trend you’ll hear is that the founders never gave up.

2 Ideas Alone are Worthless

Ideas themselves aren’t worth much, its the people behind the ideas that matter,and how committed they are to executing their vision.

3 Overbuild

Too few start-ups focus on creating the minimum viable product,or MVP.Creating the MVP means developing a product that’s easy to understand. Don’t overbuild. Read more of this post

Filed under Entrepreneurship, Tool Kit Tagged with postaday, start-up, start-up failure, why start-ups fail

Divine Solitaires Price Index

December 16, 2012 Leave a comment

wealthymatters.com Ever since http://www.diaprices.in stopped publishing prices in the old format I mentioned before and switched to the current one with no details of smaller stones and better colour grades I have found the price list here of more use to figure out what sort of deals I am being offered on my diamonds.Hope you find it useful too.

Filed under Alternative Assets, Tool Kit Tagged with Diamonds, Divine Solitaires Price Index, investing in gemstones, postaday, price of diamonds, solitaires, Solitaires Price Index

The A-Z of LBOs

December 15, 2012 2 Comments

WHAT IS AN LBO?
During mergers and acquisitions, when the buyer borrows money by keeping assets of the target company as collateral to fund the acquisition, it is known as a leveraged buyout (LBO). The borrowed funds could include junk bonds or traditional bank financing. Often a leveraged buyout does not involve much committed capital, as reflected by the high debt-to-equity ratio of the total purchase price (typically an average of 70% debt, 30% equity). In addition, any interest that accrues during the buyout tends to get compensated by the future cash flow of the acquired company. Read more of this post

Filed under Entrepreneurship, Paper Assets, Theory, Tool Kit Tagged with Aditya Birla Group buying out Columbia Chemicals, GMR acquiring Intergen, LBO, mergers and acquisitions, postaday, Tata Steel’s acquisition of Corus

How To Calculate The Returns From Your Mutual Fund Holdings?

December 12, 2012 2 Comments

wealthymatters.com If you have made a one time lump sum investment and opted for the growth/dividend reinvestment options here is the formula: CAGR = [(final amount/amount invested)^(1/tenure)] – 1

In case you have a SIP and have opted for the growth option,then use the IRR feature in excel to calculate your returns.

In every other case use the XIRR feature in excel.

Remember that money out of your pocket is marked”-” and money into your pocket is “+” while calculating IRR and XIRR. For worked samples see this link.