Finance – plain & simple

Finance delivered to you in a way you can appreciate better

The World of Finance

The working of the Financial system in whole – the analysis, reporting, reading, understanding – the making of sound investment decisions – they have for most parts been very altruistic to most on a day-to-day as well as on a long term decision making...

So, what I propose to offer in this blog is this – I say it as it is – in simple and plain terms – with complete independence – now, stop right here – this is not an investment analysis bulletin board – I do not advice you – I simply share. As a lot of us in Finance already are aware – no financial opinion is completely independent though we claim the same – all our opinions, decisions and analyses with conclusion all are affected to a certain degree by our preconceived notions and induced or latent opinions which were concreted subconsciously for a really long time and given that my sharing here is for free beware that they are layered with my preconceived notions and opinions and hence genuinely not independent. So, what does independence generally mean – well that we are no way in a relationship with the Company we are commenting on and also that they are in no way a relative or otherwise first, second or a third cousin of mine.

Otherwise put in a sense that a consultant you pay for would say – Independent Valuer means a Person with no material current or prior business or personal relationship with the Advisor or the Directors and who is engaged to a substantial extent in the business of rendering opinions regarding the value of Investments of the type held by the Company.

So, we might still be an acquaintance who loves the work they do and hence overprice it and try any substantiate the price we believe should be their worth or just be a grumpy Mr Grinch when it comes to the Company because there was a compulsory acquisition of my land by them and undervalue them because of personal innuendos. In reality, most times it is the median of the two scenarios pegged above. So, the next time you read an analysts opinion, understand the facts on which he is basing his / her opinion and discount his opinion by forming your own conclusion and that way you will be more ready and be more aware of what you are deciding and hence not just be reliant but sometimes even a bit defiant.

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