Skip to main content

Posts

Showing posts from April, 2013

START A ELEPHANT POO PAPER MAKING

    START A ELEPHANT POO PAPER  MAKING Animals which eat a lot of vegetable matter and have poor digestive systems generate poo that is suitable for making paper. The animal droppings are washed and boiled for many hours. The solution is then blended or spun to soften and cut the fibers. Other things such as dye and/or other fibrous materials may be be added to give the solution the proper consistency. The slurry is then sifted onto rectangular sieves and allowed to dry. When dry, the thin layer of plant fibers is peeled off the sieve and made into paper and paper products The method used for making elephant dung paper is more or less the same as making other varieties of handmade paper. There are minor changes we have had to make because of the fibrous nature of the raw material. Making sure that the paper is not harmful for the papermaker as well as the user was our biggest challenge… so disinfectants are used to make the paper as bacteria free as possible. 1. COLLECTING THE POO Dung

Investing in Insurance Companies

Insurance is often described as banking without money given it engages in a risk management business model using other people's money. But is it wise to invest in such insurance companies? Definitely Yes ! Many analysts say the insurance market is in better shape than banking, and it may be an ideal time to invest in companies with better fundamentals and history. Insurance is the transfer of risk from one party to another in exchange for the payment of a premium. The premium, in turn, is invested and used to pay out future claims and to operate the insurance company. In short, insurance companies are engaged in two primary revenue streams: 1. the assumption of other people's risk in exchange for money/premiums. 2. the management of such premiums (asset management). What should investors look for when investing in insurance companies? As with traditional metrics of investing stocks, there are some things that investors should look at while investing in insurance companies. The

Don't Follow Them Blindly

Any veteran shall say, just blindly following the big guns of the capital markets will leave you nowhere. And the same comes true when we look at the performance of the big bull Rakesh Jhunjhunwala’s portfolio in the fourth quarter of the last fiscal. For the aforesaid period Nifty- the benchmark index of the National Stock Exchange, was declined by just 4.5% while some stocks from the Big B’s portfolio declined as much as in the range of 40-70% for the same period. Small investors often overlook the rationale behind investment, the entry price of the investment and the time-horizon envisaged by these capital market honchos and blindly start buying shares and eventually end up repenting. Rakesh Jhunjhunwala had recently bought shares of Titan Industries at a price which was about around 150 times of his first purchase(of the same stock).  This means, the first batch of shares had given him a whopping return of 15,000 % and this is why even a major price-drop from the last purchase pric

Why interest rates in India are not going down?

Indians are highly perturbed with high interest rates prevailing in the country. From corporates to individual loan subscribers, all are feeling the heat of high interest rates. Earlier all eyes were on the RBI to cut policy rates but even after it slashing the repo rate by 50 basis points (or .5 %) in this calendar year banks and other financial institutions were unable to cut the lending rates significantly.  Higher interest rates are resulting in piling NPAs (Non Performing Asset or bad debt) besides lower NIMs (Net Interest Margin). Why banks are not slashing interest rates significantly? Mere RBI slashing policy rates shall not enable banks to drop interest rates significantly but for that deposit rates too need to be slashed. Deposit rates refer to the interest payable on the deposits of the customers- time deposits (FD, RD etc) or demand deposits (saving account etc). Now the question becomes- why banks are not reducing the deposit rates? And the answer is-Sluggish growth in b