Finmazing

What is a Profit and Loss Statement (P&L)? The profit and loss statement is a financial statement that summarizes the revenues and costs incurred during a specific period. The P&L statement is synonymous with the income statement. These records provide information about a company’s ability or inability to generate profit by increasing revenue, reducing cost or both.   Understanding how to analysis P&L Statement The P&L statement is one of the three financial statements every company issues quarterly and annually. It is often the most popular statement that investors analyses before investing in a company. But how should one analyze P&L statement? The book “Warren Buffet and Interpretation of Financial Statements” guides us how Warren analyzes P&L Statement to identify company with durable competitive advantage. Without further ado, here is a summary of the book   1) Revenue : Where money comes in The first line of P&L Statement tells us about total ...

What is a 100 bagger stock?  These are the stocks that return Rs 100 for every Re 1 invested. It means your Rs 10,000 investment turns into Rs 1,000,000. Sounds interesting right? The real question is how can one identify the next 100 bagger. Luckily, Chris Mayer (CIO of Woodlock House Family Capital) conducted a research of 100 baggers between 1962 and 2014 and the result of his analysis is available in his book “100 bagger: Stocks that Return 100-to-1 and How to find them.” Without further ado, here is a summary of how to find next 100 bagger 1)Growth, Growth and more Growth Almost all 100 bagger in the history were substantially bigger at the end than they began. So, look for companies with growth and lots of growth potential. But be careful and looks for companies with ‘good growth.’ There is no use of investing in a company which has doubled its sales but also doubled its outstanding shares. Likewise, if a company generates lots of sales by cutting prices and driving down its ...