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.

Sunday, August 12, 2018

Robert Kiyosaki Inspirational Quotes part2


I would love to share today with part 2 of inspirational quotes from Robert T. Kiyosaki, Author of best selling book "Rich Dad Poor Dad". If you would like to know more about him, please do visit part 1 of Robert Kiyosaki Quotes
Robert Kiyosaki Inspirational Quotes subramoneyplanning.blogspot.com
Robert Kiyosaki Quotes


Below are the ten inspirational quotes from Robert T. Kiyosaki Part 2 that will transform your life towards creating money & wealth:

Wednesday, September 20, 2017

What is Bitcoin | Explain about Bitcoin

You might have heard a lot in recent times about "Bitcoin" as I did, so I thought of throwing some light on What is Bitcoin (which is a  first cryptocurrency), how Bitcoin works, Bitcoin Mining, how to buy & sell Bitcoin in Exchanges, how to earn free bitcoins (Bitcoin Faucets) and much more about everything you need to know about Bitcoins in the coming blog posts.

Bitcoin is an Open Source Peer-to-Peer Currency which uses peer-to-peer technology features that operates with no control of any Government or Central Banks or Central Authority, Issuing new currencies or tracking transactions.

What is Bitcoin
What is Bitcoin? | Explain about Bitcoin

Thursday, August 24, 2017

What are Cryptocurrencies | Explain about Cryptocurrency

One of the most significant revolutionary impact over the last two decades are Innovation of "Cryptocurrencies", as many experts have predicted, Cryptocurrencies are the future of Financial Transactions which will impact Financial Industry a lot.

Sunday, September 28, 2014

Robert Kiyosaki Quotes Part1

I would like to share through Saving Sunday series from this week, some of the inspiring quotes from notable key personalities in the areas of Finance, Personal Money Management, Financial Planning & Business.

Robert T. Kiyosaki Quotes
Robert Kiyosaki Quotes
Today let us start with inspirational quotes from Robert T. Kiyosaki. Just an introduction about him, Robert Kiyosaki is a world renowned financial literacy activist, motivational speaker and self help author of New York Times Bestsellers: Rich Dad Poor DadRich Dad's CASH FLOW Quadrant and Rich Dad's Guide to Investing;






Below are the five inspirational quotes from Robert T. Kiyosaki Part 1 that will transform your life towards creating money & wealth:

Friday, September 26, 2014

Modi's Launch of Make in India initiative

The Prime Minister Mr. Narendra Modi launched his "Make in India" initiative to boost manufacturing sector on Thursday 25th September 2014 at Vigyan Bhawan in New Delhi in presence of 500 top corporate CEOs across the world.

The "Make in India" campaign program includes initiatives to facilitate investment, protect intellectual property and build best-in-class manufacturing infrastructure.

Wednesday, July 23, 2014

Personal Income Tax Slab & Benefits:Budget 2014-15

Budget 2014-2015: Taxpayers have some reason to smile… 

The following is the gist of most important announcements presented by the Finance Minister Mr. Arun Jaitley in his maiden Budget speech on Thursday 10th Jul 2014:

 # Tax Rate is not changed compared to last budget 2013-14 (i.e., 0% as minimum, 10%,20% and 30% as maximum slab rate is maintained)

# Personal Income Tax exemption limit is increased by Rs 50,000/- (from Rs. 2 Lacs to 2.5 Lacs) for individual taxpayers below the age of 60 years irrespective of men or women. The individual tax exemption limit of Rs 2.5 lac has no gender segregation.

# Personal Income Tax exemption limit is raised by Rs 50,000/- (from Rs. 2.5 Lacs to 3 Lacs) also for individual senior citizens in the range of 60 to 80 years of age.

# As a big push towards to small savings among people, Investment limit under Section 80C instruments has been increased from Rs 1 Lac to Rs 1.5 Lacs which will encourage long term savings among people. This will result in a savings of Rs 5,000 per year for individuals.

# Public Provident Fund (PPF) deposit limit has also been increased to Rs 1.5 Lacs per annum from Rs. 1 Lac per annum.

# To revitalize investments into realty sector, the cap on interest on home loan with respect to self occupied house property has been raised from Rs 1.5 Lacs to Rs 2 Lacs.

# Proposal to reintroduce Kisan Vikas Patra (KVP) which was discontinued from Dec 2011 was one of the major encouragement towards long term saving habits;

# A special National Savings Certificate scheme for parents with the objective of saving for the purpose of education and marriage of the girl child was announced;

# Tax benefits to continue in the Rajiv Gandhi Equity Savings Scheme (RGESS) under section 80CCG which can be claimed as tax benefit for a period of three years;

# Skill India, a national multi skill school program to be launched to develop, train the skills of the youth towards employability and entrepreneur skills;

The below table will compare the tax slab for Individual Tax Payers with previous budget of 2013-14 and current budget of 2014-15:

Personal Tax Slab Comparison 2013-14&2014-15
Individual Income Tax Slab 2014-2015 comparison with 2013-2014

Friday, July 11, 2014

What's gone up and down: Union Budget 2014-2015

The Finance Minister of India, Arun Jaitley presented his maiden Union Budget 2014-2015 on Thursday 10th Jul 2014.

Following is a brief list which will display which product/item gets costlier or cheaper (what goes up and what goes down) according to current tax proposals at budget 2014-2015:

What goes up (Achche Din

# Cigarettes / Cigars

Friday, May 30, 2014

Modi's mantra: top 10 priority agenda in 100 days

Prime Minister Modi has listed out his mantra of top 10 priorities to be kept in mind by all new cabinet ministers for their first 100 Days agenda; 

The 10 point agenda for first 100 days is listed out here: 

Friday, May 23, 2014

India Election Results 2014

Modi, the next Prime Minister

As a turn around in the history of Indian Politics, a non-Congress government has pulled off a stunning landslide victory for the first time as a single majority Government;

Yes it is BJP who have made historic win in the Lok Sabha Election Result 2014 released on 16th May 2014 with 52% of MPs out of 543; And BJP allies have made it up to 10% of MPs

As default, History has proved that who wins Uttarpradesh (U.P) constituency will be the Government who rules India; It is now again proved that BJP who has won 71 seats out of 73 seats in U.P will be the Government of India who rules the country;

Thursday, April 24, 2014

RBI extends deadline for exchanging Pre-2005 currency notes to Jan 2015

The Apex Bank of India (RBI) on Monday 3rd Mar 2014 announced that they are extending further nine (9) months from existing deadline of Apr 2014 for exchanging bank notes issued prior to 2005 which don't have year printed on the reverse side of the currency note.

Wednesday, April 16, 2014

Pepsi IPL T20 2014 Schedule

The seventh edition of the Indian Premier League (Pepsi IPL 2014), the biggest cricket event kick starts today 16th Apr 2014 at Abu Dhabi and continued in India after Election till 1st Jun 2014 ;

To make sure you don’t miss it, here is the Pepsi IPL T20 2014 schedule for refreshing your mind to earn more money in coming days…

Update: Excel file can be downloaded to save in your desktop to see the Pepsi IPL T20 2014 Schedule @ 

http://downloads.ziddu.com/download/23717045/Pepsi-IPL-2014-Schedule.xlsx.html

http://downloads.ziddu.com/download/23717046/IPL-2014-Schedule.jpg.html

Wednesday, February 19, 2014

Highlights of Interim Budget 2014-15

On Monday 17th Feb 2014,  Finance Minister P Chidambaram presented the Interim Budget for the year 2014 in Parliament focusing mainly on indirect tax, expenditure details & achievement of UPA Government in these 10 years tenure;

Here is  the list of major highlights pertaining to Indian Interim Budget 2014-2015:

1) The fiscal deficit for 2013-14 has been contained at 4.6 percent (below the red line of 4.8 percent) and the revenue deficit stood at 3.3 percent.
2) Eight (8) National Investment and Manufacturing Zones (NIMZ) have been announced along Delhi Mumbai Industrial Corridor (DMIC). Nine (9) Projects had been approved by the DMIC trust.
3) Three (3) more Industrial Corridors connecting Chennai and Bengaluru, Amritsar and Kolkata
& Bengaluru and Mumbai are under different stages of preparatory works.