Fortune and Finance

  The Value of Synergy “Many acquisitions and some large strategic investments are often justified with the argument that they will create synergy”   There are various types of Synergies like financial synergy and operational synergy. We then examine how best to value synergy in any investment and how sensitive this value is !!!   Synergy can be quoted as an increase in value that is generated by combining two entities to create a new and more valuable entity, which is the magic ingredient that allows acquirers to pay billions of dollars as a premium in acquisitions.   Operational synergies: Operating synergies are those synergies that allow firms to increase their operating income from existing assets, increase growth, or both. Eg. Economies of scale, Greater pricing power, Combination of different functional strengths, Higher growth in new or existing markets, etc.   Financial Synergy Financial synergy leads to either higher cash flows or a lower cost of capit...

  How to calculate a country default spread? For countries that don’t issue dollar-denominated bonds or don’t have a CDS spread, you have to use the average spread for other countries with the same sovereign rating .   With the above approach have calculated country default spread for 80 countries using the sovereign rating. link below :    https://github.com/spai45/fortuneandfinance/blob/main/Country%20Default%20spreads.xlsx

Are there some things which cannot be valued using a valuation model ? As we all know Assets can be valued , commodies can be valued ,etc But there are 3 things currently which cannot be valued 1. Currency Currency Cannot be valued but it  can be priced against other currencies 2. Collectables / Antiques Collectables are priced based on emotions scarcity and desireabilty . 3. Crypto currency Valuation of crypto is quite mysterious,  since these does not generate any cash flow . It has a possessed value. Anyone with any approach to value above ?

  An investment is called to be risk-free if the below two conditions are satisfied: 1)   1)  No default Risk 2 )  2)  No Reinvestment risk   So what does default risk mean? Default risk is the risk that a lender takes on in the chance that a borrower will be unable to make the required payments on their debt  obligation   And Reinvestment risk? This is the chance that the  cash flows  from an investment might have to be reinvested in a way that does not match the proceeds of the original, for example at a lower  interest rate .

  How winning is done mentally? “An Investigation into a Winning Mentality “ It starts with a question: You want to do this, right? This may seem like a very simple question, but, my friend, there is a difference between wanting to do something and having to do something. Most people in this world are doing what they do, not because they want to, but because they have to. Having to do something becomes a duty you have to fulfill. Wanting to do something is a choice. Therefore, to win, the very first thing you need to clarify in your mind is, do you really want to do this? When it’s a choice, there is an ownership of doing that thing. You want to do it. Here’s a very simple thing, if you don’t care, if you don’t take what you do seriously, then forget about winning, ever. So, decide right now in your mind, do you want to do this or not? That’s the first step. what are your thoughts?

  It’s all right to feel pain!!! There are no great secrets hiding behind the doors of happiness, except that everything is great and is supposed to be great for you to remain happy. You find out a lot about life, yourself, and others when you don’t mind stepping outside of feeling happy. You find out what your limitations are, what you can take, what you can come back from, and what you can become. None of that can be learned and actualized by wishing to be safe and happy all the time.

  *Virat Kohli steps down from test captaincy* A shocking news One of the most successful Indian test captains with a high win percentage of 59%, steps down from captaincy unexpectedly. But there is a learning from the same, Everything has to come to a halt at some stage and its important to take a break for figuring out what's going wrong? And to bounce back with a greater intensity And this is what we expect from the best batsman in the world We will miss you Captian Kohli :)