Friday, November 15, 2019

20 Warren Buffett Quotes on Stock Picking, Risk & Leverage


Warren Edward Buffett (popularly known as Warren Buffett) is an American based Investor, Business Magnet, Chairman and CEO of Berkshire Hathaway. 

Warren Buffet is considered one of the most successful investors in the world, also one of the top 10 wealthiest person in the world for the last few decades and currently he is ranking third among top wealthiest person in the world with $82.5 Billion Net worth. His Investment wisdom and his Investment Quotes related to Investing are most popular among all Investors for almost half century and so on.

Here we will list down famous Warrant Buffet Quotes on Stock Picking, Risk and Leverage:

1)      “Rule No. 1: never lose money; rule No. 2: don’t forget rule No. 1” ~ Quote by Warren Buffet
2)      “Risk comes from not knowing what you’re doing.” ~ Warren Buffet
3)      “Never invest in a business you cannot understand.” ~ Warren Buffet
4)      “When forced to choose, I will not trade even a night’s sleep for the chance of extra profits.” ~ Warren Buffet
5)      "If you like spending six to eight hours per week working on investments, do it. If you don't, then dollar-cost average into index funds." ~ Warren Buffet
6)      “Keep all your eggs in one basket, but watch that basket closely.” ~ Warren Buffet
7)      Charlie and I view the marketable common stocks that Berkshire owns as interests in businesses, not as ticker symbols to be bought or sold based on their "chart" patterns, the "target" prices of analysts, or the opinions of media pundits. ~ Warren Buffet
8)      “Diversification is a protection against ignorance. It makes very little sense for those who know what they’re doing” ~ Warren Buffet
9)      Buy into a company because you want to own it, not because you want the stock to go up. ~ Warren Buffet
10)   We believe that a policy of portfolio concentration may well decrease risk if it raises, as it should, both the intensity with which an investor thinks about a business and the comfort-level he must feel with its economic characteristics before buying into it. In stating this opinion, we define risk, using dictionary terms, as “the possibility of loss or injury.” ~ Warren Buffet
11)   "If you don't feel comfortable making a rough estimate of the asset's future earnings, just forget it and move on." ~ Warren Buffet
12)   "Buy companies with strong histories of profitability and with a dominant business franchise." ~ Warren Buffet
13)   “It’s only when the tide goes out that you learn who has been swimming naked.” ~ Warren Buffet
14)   "We want products where people feel like kissing you instead of slapping you." ~ Warren Buffet
15)   "It's better to have a partial interest in the Hope diamond than to own all of a rhinestone." ~ Warren Buffet
16)   "In the business world, the rear view mirror is always clearer than the windshield." ~ Warren Buffet
17)   “The best chance to deploy capital is when things are going down." ~ Warren Buffet
18)   "It's been an ideal period for investors: A climate of fear is their best friend. Those who invest only when commentators are upbeat end up paying a heavy price for meaningless reassurance." ~ Warren Buffet
19)   “When you combine ignorance and leverage, you get some pretty interesting results.” ~ Warren Buffet
20)   “I’ve seen more people fail because of liquor and leverage – leverage being borrowed money. You really don’t need leverage in this world much. If you’re smart, you’re going to make a lot of money without borrowing.” ~ Warren Buffet

Feel free to share more famous quotes of 20 #Warren Buffet on Stock Picking, Risk and Leverage.  


Friday, November 1, 2019

Scope and Functions of Management Accounting


J. Batty defines Management Accounting as “the term used to describe the accounting methods, systems and techniques which coupled with special knowledge and ability, assist management in its task of maximizing profits or minimizing losses”.

Scope of Management Accounting

The Management Accounting includes the following fields / scope of activities:

       1)      Financial Accounting: Financial accounting is the basis for Management accounting. Therefore, there must be a properly designed financial accounting system. Otherwise, the management cannot obtain full control and co-ordination of activities.

       2)      Cost Accounting: The costing techniques like standard costing, budgetary control, marginal costing, opportunity costing etc., play a vital role in the creation of policies and the operation of the undertaking.

       3)      Statistical Methods: The statistical tools like graphs, charts etc., help the management to understand the facts clearly. The statistical methods are also useful for drawing up plans and conclusions without waste of time and energy.

       4)      Internal Control: Internal control systems like internal check, internal audit and inventory control etc., ensure accurate information which is useful for making correct decision.

       5)      Office Operations: The office services which include maintenance of proper data processing and other office management services are also useful to the management in carrying out its functions.

       6)      Legal Provisions: The management decisions depend on various rules and regulations.

Functions of Management Accounting

The basic function of Management Accounting is to help the management in carrying out its function effectively. This basic function involves the following other activities:

       1)      Providing the Data: The management accountancy provides the necessary data for the drawing up of it plans.

       2)      Modification of Data: Th management accountancy compiles and classifies the data properly for decision making.

       3)      Analysis and Interpretation of Data: In order to make the data more meaningful to the management, the accounting data is analyzed by means of comparative statements, ratios and percentages, cash flow and fund flow statements.

       4)      Means of Communication: The Management accountancy serves as a means of communication by expressing the effectiveness of organizational capabilities and methods of carrying out plans.

       5)      Facilitating Control: The Management Accounting enables the management to control the organization by fixing the goals and the time limits for their attainment. In any system of control, the standard of performance and the analysis of variations therefrom are essential. This is made possible in management accountancy through budgetary control and standard costing.

       6)      Qualitative Information: The financial data alone is not sufficient for the management for decision making. It may require some other information which is not capable of being expressed in terms of money. Such information like statistical compilation, minutes of meetings, engineering records etc., are also collected in management accounting.

Thus, these are the scope and functions of Management Accounting for assisting management to maximize profit and control cost and loss.

To know more about Definition, Objectives & Tools of Management Accounting, you can have a visit @ https://subramoneyplanning.blogspot.com/2019/10/management-accounting-definition-objectives-tools-used.html

To know more about Advantages and Disadvantages of Management Accounting, please do visit @ https://subramoneyplanning.blogspot.com/2020/08/advantages-and-disadvantages-of-management-accounting.html

Saturday, October 19, 2019

Management Accounting – Definition, Objectives and Tools used


Management Accounting Introduction:

Management Accounting is the accounting technique helpful to the management in discharging its functions. In other words, it provides the accounting information which is useful for planning, directing and controlling the activities of an organization. It rearranges the accounting information provided by the financial accounts in such a manner to suit the diverse requirements of the modern management. In brief, it provides the information in a suitable form to the management for exercising its functions effectively. It includes all sorts of accounting analysis, costing and statistical and graphical techniques.

Management Accounting - Definition, Objectives and Tools Used
Management Accounting - Definition, Objectives and Tools Used subramoneyplanning.blogspot.com

Thursday, October 3, 2019

5 Important Functions of Management Lessons from Thirukkural


The Thirukkural (Sacred Couplet Verse) is one of the ancient non-religious Tamil literature and scripture that guides human beings (Society)and shows light on wisdom for better living in this universe. Though Tirukkural (Divine Couplet Verse) is written over 2,000 years ago by Saint Thiruvalluvar in Tamil (one of the oldest languages), the way of life advised in Tirukkural is still relevant for today’s modern life and will be relevant for future generations also. Thirukkural is praised as “the Universal Veda” and “ the Universal Code of Conduct”.

Let us see how Thirukkural provides five 5 important functions of Management Lessons through various Thirukkural couplets / verses (kurals). Management is well explained in Kural 381.
5 Important Functions of Management Lessons from Thirukkural (திà®°ுக்குறள்) Thiruvalluvar
5 Important Functions of Management Lessons from Thirukkural (திà®°ுக்குறள்) Thiruvalluvar subramoneyplanning.blogspot.com
குறள் பால்: à®ªொà®°ுட்பால். à®•ுறள் இயல்: à®…ரசியல். à®…திகாà®°à®®்: à®‡à®±ைà®®ாட்சி.(The Greatness of a King)

Thursday, September 19, 2019

Difference between Cheque vs Demand Draft (DD)

Let us understand the definition of Cheque and Demand Draft to have clear idea.

According to Section 6 of the Negotiable Instruments Act, “Cheque is a bill of exchange drawn on a specified banker and not expressed to be payable otherwise than on demand”.

Although Demand Draft is a pre-paid Negotiable Instrument, it is not defined under the act. Demand Draft is popularly known as DD in Banking Jargon. Demand Draft means an instrument drawn by one branch of a bank upon another branch of the same bank instructing the later to pay a certain sum of money to the person named therein or to his order.

Sunday, August 18, 2019

Definition of Banker and Customer

Banker

There are three different definitions of Banker which covers essential and secondary functions of Banker.
  1. Dr. Herbert L. Hart defines a Banker as, “one who in the ordinary course of business, honors cheques drawn upon him by persons from and for whom he receives money on current account”. As per this definition, the receiving of deposits of money from the public and repaying the same by honoring their cheques are their essential functions to be performed by a person to become a banker. But

Sunday, July 28, 2019

Difference between Cheque vs Bill of Exchange


Before analyzing the difference between Cheque and Bill of Exchange, let us understand the definition of both the terms to show some light on it.

According to Section 6 of the Negotiable Instruments Act, “Cheque is a bill of exchange drawn on a specified banker and not expressed to be payable otherwise than on demand”.

According to Section 5 of the Negotiable Instruments Act, “Bill of Exchange is an instrument in writing containing an unconditional order, signed by the maker, directing a certain person to pay a certain sum of money only to, or to the order of a certain person or to the bearer of the instrument”.

Below are the distinguish / difference between Cheque vs Bill of Exchange to understand more about these features of Cheque and Bill of Exchange:

Difference Between Cheque vs Bill of Exchange Subramoneyplanning.blogspot.com
Difference Between Cheque vs Bill of Exchange Subramoneyplanning.blogspot.com


Hope this will be clear enough to see the distinguish / difference between Cheque vs Bill of Exchange.

Sunday, July 7, 2019

Highlights of Union Budget 2019-20

Finance Minister Smt. Nirmala Sitharaman presented the maiden budget 2019-20 of newly formed Modi 2.0 government on Friday 5th Jul 2019 which was good for middle class.

She mentioned the budget was presented with 10 years vision in mind. Below are the 16 key takeaways and highlights of Union Budget 2019-20:

1) Indian Economy to achieve 3 Trillion Dollar Economy by 2019-20 and most likely to achieve as 5 Trillion Economy in few years. This would be great achievement.

2) Startup India Scheme to be continued till 2025. New programmes to be exclusively introduced for start-ups on DD Channel.