Thank you 😊 you can find their financials on the NSE or BSE websites, just search the company name in the search bar, or check the investor section on each company’s website.
Marico and Tata motors don't have pricing power they don't create wealth for you. If you think % will get you wealth then you are wrong. Quit those two stupid companies
I respect your view but wealth creation is not just about pricing power. it is also about execution, capital efficiency, and consistent growth. Both Marico and Tata Motors have shown steady improvement in those areas.
Anyway, I just used these companies as examples....my main point was how to read an income statement of any company. You can pick any company you like; the idea is to understand the numbers behind the story 🙂
How consistent growth will come.. It's come from only two things product criticality and essentiality. Only monopoly operate in these domain give so called consistent growth. Nokia is a efficient company it failed because of absence of promoter. If you hire MBA to execute then every stock should be a multi bagger. Think beyond numbers to create wealth. Because you are educating investors so you should be ahead of management
You have made a fair point, product criticality and essentiality do play a key role in sustaining growth. But consistency can also come from adaptability, capital allocation, and management discipline, not just monopoly or promoter strength. Nokia is indeed a great example, it shows that even efficient companies can lose their edge if they fail to evolve with market shifts. That is why I focus on reading financials and studying business adaptability together. Numbers tell what happened, but management behaviour tells what is next.
You still don't get it... See during Californian gold rush the tool supplier and Levi's Jean maker always makes more wealth than the person who search for gold. That's the investing mental model. If the gold miner is efficient, adaptable, behavior is all great still can't beat the ROCE and cash flow compounding of Levi's jeans and tools supplier that's how industry work. One can't support human factor against scientific thinking.
You are absolutely right about the gold rush mental model... selling the tools often creates more predictable and higher-quality cash flows than digging for gold. It is a powerful framework, and it explains why businesses with recurring demand and low cyclicality compound well. But the key is: not every industry fits into a single mental model. Levi’s was the winner in that era, but in the smartphone era, the tool suppliers (chipmakers, OS owners, infra providers) and the gold miners (brands like Apple) both created massive wealth because the ecosystem evolved. That is why I try to study companies from multiple angles: efficiency, adaptability, capital allocation AND industry structure. Relying on only one mental model can oversimplify how wealth is actually created across different cycles. At the end of the day, the goal is to understand which role a company is playing (tool supplier, platform, or miner etc) and how durable that position really is.
Great article...
Thank you..I am really glad you liked it 😊
Hello Smita, Thank u for explaining this so nicely and in an easy way.
Also can u tell me where can i get the financial for Marico or Tata motors?
Thank you 😊 you can find their financials on the NSE or BSE websites, just search the company name in the search bar, or check the investor section on each company’s website.
Marico and Tata motors don't have pricing power they don't create wealth for you. If you think % will get you wealth then you are wrong. Quit those two stupid companies
I respect your view but wealth creation is not just about pricing power. it is also about execution, capital efficiency, and consistent growth. Both Marico and Tata Motors have shown steady improvement in those areas.
Anyway, I just used these companies as examples....my main point was how to read an income statement of any company. You can pick any company you like; the idea is to understand the numbers behind the story 🙂
How consistent growth will come.. It's come from only two things product criticality and essentiality. Only monopoly operate in these domain give so called consistent growth. Nokia is a efficient company it failed because of absence of promoter. If you hire MBA to execute then every stock should be a multi bagger. Think beyond numbers to create wealth. Because you are educating investors so you should be ahead of management
You have made a fair point, product criticality and essentiality do play a key role in sustaining growth. But consistency can also come from adaptability, capital allocation, and management discipline, not just monopoly or promoter strength. Nokia is indeed a great example, it shows that even efficient companies can lose their edge if they fail to evolve with market shifts. That is why I focus on reading financials and studying business adaptability together. Numbers tell what happened, but management behaviour tells what is next.
You still don't get it... See during Californian gold rush the tool supplier and Levi's Jean maker always makes more wealth than the person who search for gold. That's the investing mental model. If the gold miner is efficient, adaptable, behavior is all great still can't beat the ROCE and cash flow compounding of Levi's jeans and tools supplier that's how industry work. One can't support human factor against scientific thinking.
You are absolutely right about the gold rush mental model... selling the tools often creates more predictable and higher-quality cash flows than digging for gold. It is a powerful framework, and it explains why businesses with recurring demand and low cyclicality compound well. But the key is: not every industry fits into a single mental model. Levi’s was the winner in that era, but in the smartphone era, the tool suppliers (chipmakers, OS owners, infra providers) and the gold miners (brands like Apple) both created massive wealth because the ecosystem evolved. That is why I try to study companies from multiple angles: efficiency, adaptability, capital allocation AND industry structure. Relying on only one mental model can oversimplify how wealth is actually created across different cycles. At the end of the day, the goal is to understand which role a company is playing (tool supplier, platform, or miner etc) and how durable that position really is.