A statement that you can’t spend profits, might surprise you! Individuals might think that this is a very odd statement and perhaps incorrect. It is a correct statement and should be made as an investing proverb to be used by any type of investor. Let me present my case.
Companies make profit by selling or exchange of their products or services. At a very basic fundamental level, this can be done by making those products or services at lower associated cost (or expenses). In the end, what we all want is to somehow convert those profits into cash so that we can spend it. Some might argue that this is just semantics of words. I say, it is not! If that were the case than how can we explain the fact that many times companies report profits that are more than cash flow from operations? Take a pause and think for a moment. How can we have more profit when we are not getting that much of cash transactions? In one of my earlier post Cash Flow is Important Financial Statement, I discussed how cash flow is what ultimately drives the value of any given business. Continue reading rest of this article…
How do I Manage My Time?
I receive questions and comments on my posts and many times in emails. I am actually surprised how often “Contact” on Menu Bar is being used. It receives third most popular clicks.
I try to respond to almost all of these questions and comments as honestly and as timely as possible. I also know that I may not be able to meet some the expected answers. If that’s the case, then it’s because of my misinterpretation or may be I did not communicate properly. The questions I receive can be classified into three distinct groups, viz., (1) questions related to my time management; (2) questions on my stock holding and my portfolio management; and (3) why am I blogging?
In today’s post, I will discuss about questions related to time management. There are subtle differences but in the end they all are related to how I manage my time. Continue reading rest of this article…