Alternative Income Streams

ist1_7925369-flock-of-dollar-fly-awayAlmost all of us have full-time salaried jobs where we work hard. We offer our knowledge and/or time to work for any given company. In return, we get compensation and recognition, and many of us eke out an excellent career from it. This is an active form of generating income. When we look at any company, how many times have we asked what are different types of products or market segments it sells into? It is good to have a company that has multiple products for continued profitability. Similarly, wouldn’t it be nice to have multiple streams of income? A multiple streams of income will provide us a safety net against our jobs!

There is a very popular notion of “passive income” that floats around the blog-o-sphere. The essence of passive income is; it is the money earned with or without our involvement. Once it is setup, the recurring income will flow in continuously. In my vocabulary, there is no such thing as passive income. Just because we do not see the effort does not mean it is passive. Instead, I like the term “alternative stream of income”. I am always curious to understand how individuals can create alternative streams of income and how they execute it. Following are few alternatives that I have thought about and tinkered with in recent past.

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Stock Buying Process

One of the dilemmas long term investors may face is, when buying for first time, how much worth of stocks one should buy in a given company. This question is from long term perspective and not for trading approaches. There are few different schools of thought on this issue. In my view, each of the thoughts, methods, and approach is valid depending upon investor’s objective.


One thought says buy at once in one go, because if one has spent time following it, researching it, then why wait for other occasions. The fact that an investor has questions (or doubt), that means this individual has doubts, or not confident about it. One is questioning own analysis. It could be lack of proper understanding of the stock, or lack of research.

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How to Execute Asset Allocation – Yale Fund Example

01319109We all investors try and maintain a diversified asset allocation in our investments. In my discussions with many folks, I have seen that many use different ways of executing this diversification. Many use combination of real estate, equities, gold, etc. In case of equities, quite a few enterprising ones long term portfolio in combination with trading portfolio. Many of us, including me, are aware of different types of asset class and investment vehicles. Unfortunately, for most of us individual investors, we fail to understand how to execute effectively. We really do not know how to engineer our portfolio such that it has optimum asset allocation for our risk profile. We think we allocate little bit of capital to all assets and we should be good to go without any worries.

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Value of Dividends – A commentary on Article by Krishna Kant of ET Bureau

On this blog, I continue discussing about my thoughts about dividend investing using value approach. My interest in dividend investing is driven by my objective of generating increasing cash flow (coupled with long term capital appreciation).

Recently, there was a very good article in the context of disinvestment of PSUs. The author, Krishna Kant, presented a very good perspective about significance of dividends from PSUs and its implications on government’s fiscal needs. I am discussing few take ways from that article:

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GE Shipping: Stock Analysis for Long Term Investment

The Great Eastern Shipping Company Limited (GESHIP) through its subsidiaries, engages in the shipping business in India. The company’s shipping business involves in the transportation of crude oil, petroleum products, gas, and dry bulk commodities. It operates with a fleet of 31 tankers. Most recently, it divested the exploration and offshore services business. My objective in this analysis to see if GESHIP is a good fit for my long term portfolio


Trend Analysis

The whole reason for any business to exist is to generate sales revenue and make more profits. At a minimum, the parameters listed below should have continuously increasing trends. All the data below is based on last 8 years i.e. from 2000 to 2008.

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Carnival of Indian Stocks – July 15, 2009

Welcome to Carnival of Indian Stocks. It is likely that readers may find posts that are not representative of the Indian Equity Markets. However, the concepts presented by authors can very well be applicable to Indian Investors.

This edition of the carnival includes 12 articles for fellow bloggers.

While you are here on my blog, I encourage you to read few posts to get a feel of India’s Investing scene. For your ease of navigation, the popular posts are listed on side bar on left hand side. I am sure you will enjoy reading!

Stock Analysis

puneetkapoor2000@gmail.com presents ANNUAL REPORT UPDATE : ADOR WELDING posted at KuberKhana -Indian Stock Fundamental Analysis, saying, “A Ben Grahamian analysis of a company.”

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Introducing TIPBlog.in

picture1Today, I am pleased to announce that “The Income Portfolio” blog has moved to a new domain. When I started this blog in February 2009, I did not think about the importance of simplicity of blog domain. I went along with the topic and hence picked the domain name as www.theincomeportfolio.com. Since then I have received few sporadic messages highlighting the fact that it is very descriptive, long, and needs effort to type blog address. Normally, I would not make a change until I receive overwhelming feedback (or critics?). But then I decided to do a little experiment.

I picked three domain names and asked my dad, mom, wife, sister, brother, and three friends to vote on which is easiest (and simpler) to identify and type. The choices I gave them were (1) theincomeportfolio.com; (2) TIPBlog.in; and (3) NewCash.in. To my surprise, TIPBlog.in received 7 votes, NewCash.in received one vote, and theincomeportfolio.com received zero vote. That made me think there is some merit behind the feedback I received on my blog. So I decided to make a change to TIPBlog.in

I have selected tick mark as logo for this blog. Tick mark signifies correct. Even to make a tick mark, one needs bring it down first, and then go up. The tick mark logo and color combination demonstrates that in short term it may appear that dividend and value investing is negative (in red), but in long term it is always up (in green).

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