Showing posts from June, 2018

The secret benefit of Diversification #IntelligentInvestor

BasicsLet's say you invested all your money by picking 10 different stocks in the automobile sector. If the government announces any policy like changes in taxes, upgraded crash norms, new engine standards etc., this can have a huge impact on the company's performance, at least in short term.

Imagine, if you had diversified your investments across sectors like automobiles, IT, agriculture, construction, Retail, Oil & Gas etc. you wouldn't have got affected as much as you have in the first case.

In simple words, Diversification means spreading your investments across different companies/sectors/countries.

FYI, there are some mutual funds which invest in countries like United States, China, and other emerging markets. You can take advantage of these funds for diversification across countries as well.

Known Benefit
Common sense tells us that diversification helps us reduce the risk of our investments.

Thus, the probability of you losing your capital is reduced drastically as yo…

Fundamental Analysis of Maruti Suzuki #StockScoreCard

IntroductionMaruti Suzuki is the manufacturer of the most popular cars in India. It is a subsidiary with ownership of 56% by its parent Suzuki Motor Corporation (A Japanese firm). Maruti Suzuki has given some of the best selling cars in the past including Maruti 800, Omni, Alto, Swift, Swift Desire, Ciaz and Baleno.

Fundamental Analysis1. Growth StoryMaruti Suzuki is a true  market leader with a lion's share of 50% (source) in Indian Passenger Vehicle (PV) segment. This simply means that one in two cars sold in India is made by Maruti Suzuki! 

In the last five years, the company has doubled its revenue and profits which is an incredible performance. 

Recently, Suzuki also announced a partnership with Toyota on various aspects to improvise the capacity utilization, improving sales and global expansion (Africa).

Maruti Suzuki is definetly posied for growth looking at the long term.

2. Shareholding PatternPromoter (Suzuki Motor Corporation) holds 56.21% of the company shares which is a ve…