House – Buy vs Rent
For many buying a house is one of the most important goals. Lot of people have a significant portion of their wealth in their house. There are many reasons to buy a house – the sense of security, being able to build memories in a house where one lives, price appreciation, etc. In this article […]
Real cost of your loan
All of us intuitively understand that if we borrow to purchase something we are paying more than if we paid fully up front, but we may not look into the actual numbers. This article is an attempt to present a case to do so. When we borrow, we have the convenience of enjoying something we […]
Source of Value
When I teach valuation in a B-School, I ask them how they would value the business of the tea vendor who is operating just outside their school. I always start the course with this example as most students are familiar with it (based on the number of hours they spend at that tea shop). Initially […]
Life stages and asset allocation
I have been catching up with a few friends who have been working for a couple of decades, earning good incomes and are now considering starting their own businesses or becoming consultants in their fields of expertise. One common theme for all of them has been that they have invested a large part of their […]