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Comparison between two retail companies picked are Walmart and Costco

The two retail companies picked are Walmart and Costco whose 2017 Financial statement links are provided below: WALMART https://www.nasdaq.com/symbol/ wmt/financials?query=income- statement COSTCO https://www.nasdaq.com/symbol/ cost/financials?query=income- statement Both organizations are well known brands and position themselves well with their customer base. Walmart’s value proposition is “We save people money so they can live better”. On the other hand, Costco’s value proposition is “All-in-one convenience and everyday affordability”. Both retailers focus on cost saving for their customers. Looking at their financial statements and by analyzing them a few key areas are evident when comparing the two organization. Looking at the current ratio and quick ratio we can determine the short-term solvency of each organization. The current ratio can be determined by dividing the assets by the liabilities. Walmart’s current ratio sits at 0.86 while Costco’s sits at 0.99. The quick ratio is c...

INVESTMENT GUIDE PART ONE (FOR THE YOUNG BUDDIES)

I have a son, last year he grabbed his B.Tech degree and a job with a coveted company. Like any father I was happy to see my son being successful in getting degree as well as a job with software industry. Knowing nothing; about the software industry. It was ok, till I saw his job offer letter. I was surprised to find the amount of initial remuneration as a trainee with that company. After serving for no less than 37 years in a nationalize organization, which was reputed as one of the best pay master when I joined; what I get now, my son is likely to get little less than that amount. His mother was too happy finding her only son starting with such a thick pay packet. I thought what goes so high that falls with more acceleration and may get crushed! Naturally I started enquiring about the industry where he found a berth. My enquiry with my contemporaries did not yield much. After all, at the time when they joined the industry, then the software industries was never heard off! However, for me they gathered the information from the people of their next generations and who are engaged with the same. I am told that people associated with these industries do not make it to the age of superannuation. Either they fall sick or they are frustrated. In both the cases, by the time they quit the jobs, mostly at their 40s, they make enough money to enjoy a good living. Though I cannot imagine how the life would be, had I retired with enough of money, at my forties…./
However, this is the reality and what I felt it is my duty only to pass my experience for the benefit of next generations. May be the time for them is not that tougher as we faced being born after Second World War. May be there would not be any great depression as our father faced during 1930s! May be there won’t be any more cold war, any more sanction; the world would be more livable. However, our old schooling reminds us the old adages like “trust in friends, but keep your power dry” or “have faith in God , but keep your camel tied.” So , I think our current progenies of” would be high net worth individuals” should take a lessons on managing their money from their college days. Here I try to offer them some tips what I have gathered during past 28 years with watching the mood of the markets.
(Investment guide Pt. I…..to be continued)

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Unknown said…
No matter what type of investment you are looking into, when you learn to invest money knowledge will be the key to success. These short tip lists are just the beginning to understanding investing and how to maximize your return. Keep learning and trying.

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