Good Investing reading – 25 December 2012

A picture is better than a thousand words. Cash flows of companies over the last few years.

Corporate India’s financial results have lead to not only a drop in profits, but investments are down too – Value Research

This article brings one point to my mind. No one is immune to investing fads and “themes”. In rising markets, people are willing to forget good corporate governance. I especially prefer to stay away from companies where material success is dependent on who is in power in the state government and central government, and how laws and regulations are twisted.

Private equity firms’ money stuck in Asian Genco projects – Business Standard

This article is from a good blog on investing called Manufactured Luck. It describes investing in the sugar sector which is famous for its cycles.

Licensed to speculate – Manufactured Luck

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  1. Akbar says

    Thanks Kunal,
    I do not agree with the Valuresearch article as the words are conflicting the chart. It is misrepresenting
    Cash flow from operating activities is the highest over the years as per the chart. What has slowed down is the growth in operating cash flows.
    The Cash flow to Investments (considered as Capex) figures are also higher than 2009, 2010. Yes, they are lower than than 2011, but having lower capex will only increase the Free cash flow, which is again positive.

  2. says

    Yes Akbar, you are right, I completely agree with you. Honestly, I too, was paying more attention to the graph and less to their text. I am going to add your comment in the main article. Thanks for pointing that out.

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