Ladakh self Driving Trip 2026 ~ Kargil to Baralacha

 “You dream of driving to the top of India and god make it possible.... so you can assume, what my feel will be.... a milestone adventures memory of my lifetime……  exactly this happened with me in September 2026, when my DREAM of self driving with our group of friends & SUVs came true and we friends did adventure trip of Indian boarder peaks with Pakistan, China and Tibbett. 

We did patriotic driving to Kargil, zero degree driving in Drass valley, dangerous driving to Khardungla Peak, frozen weather Pangong Lake, SnowTrekking in Baralacha Top, thrilling driving to Changla pass, speedy driving in Meta Plains, Tricky driving in Gata Loops, Amazed driving in MoonLand peaks and nature trail driving in Leh manali highlway....... 2100 kms in Himalaya in 9 days

~Altitude : upto 19,682 feet height

~Temperature : -7 degree to +14 degree, almost frozen to chill winds

~Oxyzen : very low oxyzen and saturation may fall below 78% without any pre-symptoms

~Major attractions covered : Sonmarg, Kargil War Memorial, Kargil Town, Mulbek valley, Moonland Peaks, Pathar Sahib Gurudwara, Magnetic Hills, Leh mall road, Thiksey Monastery, Khardungla peak, Changla Peak, Galwan Ghati, Hunder Camel Zone, Nubra Valley, Dikshit Monastery, Indus River Sangam, Worlds highest rafting point, Shyok River, Pangong Lake, MetaPlains desert, Gata Loops, Baralacha snow peaks, Namik la peaks, Tanglang La peaks, Suraj taal, Vijay taal, Jispa cauliflower farms, Sissu valley, Solang, Rohtang, Manali, Kullu, Chandigarh   etc. real natural beauties with diversity of terrains.

~Food : Indian vegetarian Pahari food easily available

~Accommodation : Good Hotels, Homestays easily available on a call

~Clothing : Strict warmest clothing with hot water bag

~Fitness : Medical fitness must, Low Oxygen level advisory from doctor, keep all medicines and oxygen cylinder

~Permits : need to obtain ILP and boarder permits in advance

~Solo or Group : Group of friends makes this toughest journey easy

~Luggage : try your best with minimum luggage as a backpacker

~Shoes : Trekking and all weather Sport Shoes 

~Roads : Mountains not having bitumen roads, be ready for rough & toughest off roading and water crossing..... and believe me, its super fun for us with crossing 07 water passes

~Time : Minimum 09 days

Jab bhi mann kare, SUV uthao aur dosto ke sath Pahado me chale jao...... nothing better than this. Apne Bharat me itna kuch hai, life is short to do adventure in India. Sea to sand to sky to mountain to snow treks.

MoonLand.... a different experience driving

ThikSey Monastery....one of its kind

Indus River Sangam...highest rafting point in the world

Scenic Leh City

Pangong colourful water....5 times colour changing with Sun movement

Our SUV in Pangong Lake... lifetime experience

Khardungla Peak 17982 feet... Patriotic feeling

Kargil War Memorial....a must visit and Salute to our brave Army

aankhe bhar aati hai, jab ye documentary dikhate hai

Enjoy Yak Push-up Challenge

amazing Ladakh

Indus River Sangam Flag Hoisting

sir shraddha se jhuk jata hai, Gurudwara Pathar Sahib

Shanti Stupa, Leh

Shyok River

Flag Hoisting at Pangong Lake China Boarder

Driving back on Kareena's Scooter, left there after 3 idiots movie

TangLangla top 17842 feet

Baralacha Snow driving is a must experience

Jab bhi time milta, ham sabhi friends apni Fortuner, Thar Roxx or Scorpio se nikal kar Biking hobby bhi puri kar lete and pahado ka har tasteful drive ka anand lete hai.....

Life is incomplete without hobbies. Please take out few moments to enjoy hobbies of Biking, Driving, Trekking, Hiking, SnowTrekking, Solo travelling..... it just not travel, but its must to refresh our life, friendship and brainstorming for business assignments with serene feelings, with Bonefire & Karaoke Nights.......

Disclaimer : This is purely a knowledge sharing blog, not offering or influencing any deal or transaction or commercials and not responsible for any travel based on the contents.

Always ready to guide you for this trip (contact on email)

CA Yogesh Birla

Director
Birla WP Management Co.
read my blogs : www.YogeshBirlaCA.Blogspot.com

Linkedin Profile Link : https://www.linkedin.com/in/yogesh-birla-323821229?utm_source=share&utm_campaign=share_via&utm_content=profile&utm_medium=android_app

Kailash Parvat ~AdiKailash ~OmParvat ~21840 ft ~FrozenTemperature ~Motoring ~Biking ~Trekking ~Hiking ~China ~Tibbett ~Nepal

“You dream of something very Tough and God award you that so Easy” and it becomes a milestone adventures trip memory of your lifetime……  exactly this happened with me in October 2024, when my DREAM of Motoring, Biking, Trekking and Hiking trip came true and we friends did adventure trip of Indian boarder with China, Tibbett and Nepal. 

We did dangerous Spiti Valley, toughest Lahoul Valley, SnowTrekking Anjaneshwar, driving Rohtang and thousand of Kilometers in Himalaya (in last 15 years).......but Kailash peaks nahi kiya, to fir life me kya kiya ???

~Altitude : upto 21840 feet height

~Temperature : +14 degree to -12 degree frozen, very chill winds

~Major attractions covered : Kailash Parvat, Adi Kailash, Om Parvat, Parvati Sarovar, Gauri Sarovar, NabhiDang, Lipulekh peak, Kalapani, VedVyas Caves, KalaDhola Sangam, JolingKong, RongKong, Tavaghat etc. real natural beauties with diversity of terrains.

~Food : Indian vegetarian pahadi food easily available

~Clothing : Strict warmest clothing

~Fitness : Medical fitness must

~Permits : need to obtain ILP and boarder permits in advance

~Solo or Group : Group of friends makes this toughest journey easy

~Luggage : try your best with minimum luggage as a backpacker

~Shoes : Trekking and Sport Shoes 

~Roads : Mountains not having bitumen roads, be ready for rough & toughest off roading and water crossing..... and belive me, its super funn for us, crossed 14 water passes

~Time : Minimum 08 days

Jab bhi mann kare, SUV uthao aur dosto ke sath Pahado me chale jao...... nothing better than this. Apne Bharat me itna kuch hai, life is short to do adventure in India. Sea to sand to sky to mountain to snow treks.

Biking starts.........

DharChula Water falls

Boarder Military Permit checking starts

Its 32 loops mountain road, super funn in driving Pin-bends with snow mountains, greenery, crystal clear green water river, zero pollution and serene Mount Kailash on the top....

Golden Sunrise from our tents in Himalaya.....

I am very lucky to celebrate Sharad-Poornima night.... (having moon-blessings by offering Kheer-Prasad) on Himalayan Peaks Nabhidang army area.... approx. 14800 ft, never seen such a clear moon and colours of sky, serene feeling on auspicious Sharad-Poornima.... its my lifetime memory

Sharad Poornima night stay in Himalaya

enjoying time with my travel buddie.... nature clicks

Colours of Sky and 3 different colours of terrains, ye sab dikh jaye....aur me photography naa karu, ye kese ho sakta hai...

Entry gate to trek Adi Kailash peaks

Lifetime memory of India Flat Hoisting at Kailash peaks..... happiness and serene feelings cannot be expressed in words...... its just Om Namoh Shivay at 20718 ft. frozen temperature

Fill up Parvati Sarovar holy water to home

Om Parvat..... see sharp on the top of my hand, word OM written in Hindi on the top of Mountain at 21810 ft, in minus temperature. Super Salute to Indian Army taking care of Boarder in super harsh conditions in frozen temperature and heavy chilling wind

Panchshul Gunners Army welcome you at Kali Mata Temple. Kali river origin from this temple. Very tasty food at Mumbai Choupati cafe by India Army.

Kailash Mansarovar peak........ ab kuch bhi kehna baki nahi hai. 

You are welcome at the home of LORD SHIVA

Jab bhi time milta, ham sabhi friends apni Scorpio SUV se nikal kar Biking hobby bhi puri kar lete.....

Life is incomplete without hobbies. Please take out few moments to enjoy hobbies of Biking, Driving, Trekking, Hiking, SnowTrekking, Solo travelling..... it just not travel, but its must to refresh our life, friendship and brainstorming for business assignments with serene feelings, with Bonefire & Karaoke Nights.......

Disclaimer : This is purely a knowledge sharing blog, not offering or influencing any deal or transaction or commercials and not responsible for any travel based on the contents.

Always ready to guide you for this trip (contact on email)

CA Yogesh Birla

Director
Birla WP Management Co.
read my blogs : www.YogeshBirlaCA.Blogspot.com

Linkedin Profile Link : https://www.linkedin.com/in/yogesh-birla-323821229?utm_source=share&utm_campaign=share_via&utm_content=profile&utm_medium=android_app

Corporate Office Success Mantra

As a Team Leader, my success mantra to the team, always:

1. Resolve the problem

2. Report the problem

3. Skip the problem (at time on priorities)

Let me explain:

1. RESOLVE :

First, attempt to resolve the problem yourself. This makes employees think on their own, problems get solved quickly, they develop courage to take decisions, and drain on the company working is reduced. It is important to make employees feel empowered and responsible. It is also important to allow mistakes made in good faith with the intention to learn from them and not repeat the same mistakes.

2. REPORT :

Next, if you cannot resolve a problem, then it is your duty to report it to your senior. If non-cooperation or non-completion by someone else, then email and cc the seniors. A problem may become problematic if you fail to report it. An escalation ensures things move towards the solution

3. SKIP THE PROBLEM :

Resolve and Report are for meaningful problems. Then, there is always going to be a long tail of problems in any organization. Learn to skip those, as the ROTI (Return on Time Invested) is not worth its while. Solving these problems will not move mountains. Hence priority is very critical.

Initially in my career I was very enthusiastic to solve every problem, but this realization dawned upon me; knowing which problem to skip for later is equally important to remain focused on the game. Hope this helps my colleagues and team mates in the industry, across the globe.

Disclaimer : This is purely a knowledge sharing article, not offering or influencing any deal or transaction or investments.

CA Yogesh Birla

Director
Birla WP Management Co.
read my blogs : www.YogeshBirlaCA.Blogspot.com

Women Entrepreneurship Schemes in India

 

We keep on talking on Women Empowerment initiatives to create a hype in our thought process, but logically not making them avail existing easy funding mechanism to fulfil their dream of getting really empowered. In USA 41.8% of all businesses are owned by women, alongwith 46.8% female labour force participation. Irrespective of all these schemes by Indian government, women comprise only 14% of the total entrepreneurs in India, with only 9.32% female labour force participation. We are hereunder summarising few of Government and Banking schemes to provide venture funding for women. Bring this awareness to make Nari Shakti on entrepreneurial platforms:

(1). Women Entrepreneurship Platform (WEP):

Mentorship, network, funding, skill training, Incubation, and acceleration program offered by NITI Ayog for women to support in their entrepreneurship journey.

Upasana Taku(MobiKwik) received support from WEP, their current valuation is ~₹5700 Cr.

Kavita Shukla(FRESHGLOW Co) received support from WEP, now has customers in over 35 countries.

Shradha Sharma(YourStory) received support from WEP, is one of the leading media platforms for entrepreneurs.

Radhika Aggarwal(ShopClues) received support from WEP, their current valuation is ~₹1,000 Cr.

(2). Mahila Udyam Nidhi Yojana

MUNY Offers loans upto 10 lakh to be repaid in 10 years for supporting women entrepreneurs to set up a new MSME / SME scale venture. It is offered by Punjab National Bank and Small Industries Development Bank of India (SIDBI) and the rate of interest better than prevailing in the market.

(3). Bharathiya Mahila Bank Business Loan

This scheme offer loans up to ₹20 crores to female entrepreneurs looking to start a manufacturing business. Ease of collateral free loan upto certain amount is big attraction of this scheme. The Bharatiya Mahila Bank merged with the State Bank of India, the loan programme is still active.

(4). Dena Shakti Scheme

Offers loans upto ₹20 lakhs at an interest rate 0.25% below the base rate for building a business in sectors like Partnership firm, business, Retail stores, Manufacturing sector, Microcredit organisations, Housing, Education, etc.

(5). Stree Shakti Yojana

Offers loans upto 20 lakh for industrial sectors such as housing, retail, and education. Also allows women to avail of an interest concession of 0.05% on loans more than Rs. 2 lakh.

(6). Stand-Up India Scheme

This initiative offers composite loans between 10 lakh and upto 1 Crore to women in SC/ST categories.

Kanika Tekriwal started JetSetGo with this initiative, their current valuation is ~₹100 Cr.

Rashmi Daga started FreshMenu with this initiative, their current valuation is ~₹210 Cr.

(7). Mudra Yojana Scheme

MYS offers loans of ₹50,000 to ₹10 lakh and ideal for setting up beauty salons, starting a small shop, home-based business, or starting your dream company.

Shanti Mohan started LetsVenture with this initiative, their current valuation is ~₹270 Cr.

Ananya Jain started Chai Break with this initiative, their current valuation is ~₹50 Cr.

Dream of Indian government of USD 10 Trillion$ economy in the next 10 years can happen true only if women contribute desired portion of per capital income with men. Wish all these initiatives bring women on a new horizon, with ease of funding and strengthen your entrepreneurial dreams to come true, and wish good luck to all the incredible women, who are making this world a better place to live.

Disclaimer : This is purely a knowledge sharing article, not offering or influencing any deal or transaction or investments.

CA Yogesh Birla

Director
Birla WP Management Co.
read my blogs : www.YogeshBirlaCA.Blogspot.com

Financial Independence and Retire Early - F.I.R.E.

This isn’t another one about Buffett’s wisdom on investing or life. It is about the relationship between time, health and money using Buffett’s wealth and age as clickbait. The author begins with “Would you rather have $0 and be 20 years old, or have $100 billion and be 90? Most people respond to this hypothetical with a resounding “Of course not, there’s no amount of money I would take to fast-forward to being 90 years old.””

“There’s a popular movement called F.I.R.E. (Financial Independence, Retire Early), where followers are devoted to living as frugally as possible so that they can retire as early as possible. While I agree with a lot of the merits of F.I.R.E. (namely the F.I. part), I disagree with the R.E. part. Retiring 10 years early at the expense of a considerable portion of one of the most valuable periods of life (your 20s/30s) seems absurd. 

For one, what is 10 years in the grand scheme of your life? On the back end, the last 10 years are almost negligible (besides, you don’t know if you’re going to live to 90 or 100 anyways). But on the front end, they’re considerably more valuable.

Secondly, work can (and should) be a large part of what drives fulfillment. Progress with whatever we're pursuing (whether we call it work or not) is one of the key drivers of happiness, so we shouldn't discount the value of work and its impact on our overall well-being.

Would you give up 10 years on the tail end of your life if it meant that you would have a more fulfilling 20s/30s? I think most of us would take that rather than the opposite — optimizing solely for wealth early-on to get an extra 10 years of retirement at the end.”

Buffett and Munger are perhaps the best example of deriving fulfilment from their work well into their 90s.

He then ties health, time and money together:

“Certain experiences that require peak physical health might only be possible in the 20s and 30s phase. For example, say you want to run your fastest marathon, or you’re like these two friends, Phil and Carter, and you want to journey from Beijing to Barcelona by bike. Sure, no one needs to do these things, but they’re experiences that would be incredibly enriching and novel.

And sometimes, physical health isn’t the constraint. If you have children, they will only live with you for 18 years of their lives, and before you know it, they’re gone. Any experiences you want to have with your kids, you have a limited time window to do those things. So, it makes sense that at this phase (the roughly 20 year period where you have children at home), most people would find the greatest fulfillment by optimizing for time spent with their kids — earning those experience points while that window exists.

A bonus of having richer experiences earlier in life is that you not only get experience points, but these early experiences pay “memory dividends” in the value of the stories they create — stories that can be retold time and time again.

Experiences yield dividends because we humans have memory. We don’t start every day with a blank brain… We wake up every morning preloaded with a bunch of memories that we can access at any time.

When you add in this concept of a memory dividend to the net fulfillment equation, something becomes clear: it pays to invest in experiences early.

Compounding works not only with money, but also with experiences.”

The author concludes with some brilliant graphic illustrations on why ‘Net Fulfilment’ over ‘Net Worth’ is a better pursuit in life.

Disclaimer : This is purely a knowledge sharing article, not offering or influencing any deal or transaction or investments.

CA Yogesh Birla

Director
Birla WP Management Co.
read my blogs : www.YogeshBirlaCA.Blogspot.com

Long Term Investors & Stock Market - 8 Lessons

"If you are a long-term investor, you should own high- quality stocks and close your ears to the siren song of those who say a rate rise will cause you problems.*

If you are not a long-term investor, I wonder what you are doing in the stock market at all, and so will you one day."*

- Terry Smith.......The "Buffett of Great Britain"

Terry Smith, often known as the English Warren Buffett, has once again shared his annual letter encompassing ideas on investment strategies positioned to do well, views on specific stocks and thoughts on the current financial world. 

Well-known in the UK among retail investors, Smith’s Fundsmith Equity fund returned about 18.6% in 2021 and holds 28.9 billion pounds ($39.4 billion).

Here are 8 lessons that we must take from his vision :

*1) No investment strategy will outperform in every reporting period and every type of market condition. So, as much as we may not like it, we can expect some periods of underperformance.*

*2) In investment, as in life, you cannot have your cake and eat it, so it is difficult if not impossible to find companies which are resilient in a downturn but which also benefit fully from the subsequent recovery.*

*3) In our view, it would be a mistake to sell some of these good businesses in order to invest temporarily in companies which are much worse but which have greater recovery potential.*

*4) Someone once said that no one ever got poor by taking profits. This may be true but I doubt they got very rich by this approach.*

*5) We invest in companies, not indices or countries and in our view, the country where a company is listed is largely irrelevant.*

*6) We continue to apply a simple three step investment strategy: Buy good companies, don't overpay, do nothing (i.e., minimising portfolio turnover to minimise costs)*

*7) You may have heard a lot talked about the so-called 'rotation' from quality stocks of the sort we seek to own to so-called value stocks, which in many cases is simply taken as equating to lowly rated companies.*

 

*8) Inflation: It is a bit like trying to light a bonfire or a traditional BBQ on a damp day. If you put an accelerant like gasoline on it you can go from no fire to a loud ‘Whoosh!’ and find that you have also set fire to the garden fence.*

The good news is that we do not invest on the basis of our ability to forecast inflation or any other macroeconomic factor. We invest in companies not countries, indices or macroeconomic forecasts.*

Disclaimer : This is purely a knowledge sharing article, not offering or influencing any deal or transaction or investments.

CA Yogesh Birla

Director
Birla WP Management Co.
read my blogs : www.YogeshBirlaCA.Blogspot.com

Getting Wealthy vs Staying Wealthy

This weekend brings a valued book reading and sharing learning from The Psychology of Money, few bullet points:

#Good investing is not necessarily about making good decisions, It’s about consistently not screwing up.

#There are a million ways to get wealthy, and plenty of books on how to do so…..But there’s only one way to stay wealthy: some combination of frugality and paranoia.

Even if “wealthy” is not a word you’d apply to yourself, the lessons from that observation apply to everyone, at all income levels.

#Getting money is one thing………#Keeping it is another.

#If I had to summarize money success in a single word it would be #Survival

#Capitalism is hard. But part of the reason this happens is because getting money and keeping money are two different skills.

#Getting money requires taking risks, being optimistic, and putting yourself out there.

But #Keeping money requires the opposite of taking risk. It requires #humility, and fear that what you’ve made can be taken away from you just as fast. It requires frugality and an acceptance that at least some of what you’ve made is #attributable to #luck, so past success can’t be relied upon to repeat indefinitely.

#Michael Moritz, the billionaire head of Sequoia Capital, was asked by Charlie Rose why Sequoia was so successful. Moritz mentioned, We assume that tomorrow won’t be like yesterday. We can’t afford to rest on our laurels. We can’t be complacent. We can’t assume that yesterday’s success translates into #tomorrow’s good fortune.

Not “growth” or “brains” or “insight.” The ability to stick around for a long time, without wiping out or being forced to give up, is what makes the biggest difference. This should be the cornerstone of your strategy, whether it’s in investing or your #career or a #business you own.

#Compounding only works if you can give an asset years and years to grow. It’s like planting oak trees: A year of growth will never show much progress, 10 years can make a meaningful difference, and 50 years can create something absolutely #extraordinary.

#But getting and keeping that #extraordinary growth requires surviving all the unpredictable ups and downs that everyone inevitably experiences over time.

Disclaimer : This is purely a knowledge sharing article, not offering or influencing any deal or transaction or investments.

CA Yogesh Birla

Director
Birla WP Management Co.
read my blogs : www.YogeshBirlaCA.Blogspot.com

Why Willful Defaulters are laughing away from Banks ??

New RBI data shows wilful defaulters are laughing all the way away from banks

The saying goes if you owe the bank $100 that is your problem; if you owe the bank $100 million, that's the bank's problem.

Banks put all their might to get the money back from retail borrowers if they default on a car or an auto loan. Delay one instalment and banks come knocking on the door. They even resort to naming and shaming tactics, using third parties. The tactics seem to work in most cases and the borrower pays back.

But it is an entirely different game when it comes to corporate loan default, which is at a much bigger scale. Banks seem to forget their drill when faced with powerful defaulters, who have a battery of lawyers which drag the lenders from court to court for years on end. And in the end, banks have little to show by way of recovery.

The numbers game...Ugly numbers are already popping up. The Reserve Bank of India data, shared with Parliament, on December 19 shows that the country’s top 50 "wilful defaulters" owed Rs 92,570 crore to Indian banks as of March 31, 2022.

Wilful defaulters are those borrowers who have the means to pay back the banks but wouldn't do so. Banks ostracise such defaulters from the financial system. Gitanjali Gems, promoted by fugitive economic offender Mehul Choksi, tops the list with Rs 7,848 crore, followed by Era Infra, an exposure of Rs 5,879 crore and Rei Agro which has defaulted on loans worth Rs 4,803 crore.

Choksi, said to be an Antiguan citizen now, is beyond the reach of Indian law. The government and its several law enforcement agencies have, so far, failed to lay hands on any of the high-profile bank defaulters, which include former liquor baron Vijay Mallya, Winsome Diamonds & Jewellery promoter Jatin Mehta and Choksi’s nephew Nirav Modi, who is fighting his extradition from the UK.

But it’s not just about wilful defaults. Much of the Rs 10 lakh crore loan that banks wrote off in the last five financial years belongs to corporates.

Of the total loan write-off, banks could recover only a fraction—around Rs one lakh crore. The remaining Rs 9 lakh crore is as good as gone, though technically the process of recovery is always on.

It’s our money

Every rupee that a bank writes off has to be provided for—called provisioning in the bankspeak.

Banks' profitability thus takes a hit. Who are the real losers? Common shareholders and depositors. Banks are supposed to be the guardians of public money. They raise deposits from small and big depositors and use these to lend to businesses.

So whenever a loan is not repaid, it’s the shareholder of the banks (value erosion) and the depositors (as the bank turns weaker in terms of capital and profitability) who suffer.

The government has, time and again, reiterated its intent to clamp down on wilful defaulters.

Coordinated action by the government, RBI and other sector regulators is critical to tackling wilful defaulters as seen in the Kingfisher case.

Banks are sitting ducks for cronies and crooks. In most cases, banks haven’t made meaningful progress in the recovery from deep-pocketed and well-connected promoters. At the end of a long legal process, the value of underlying assets deteriorates and banks are left empty-handed.

The government’s intervention to speed up the recovery process is equally critical since each penny it feeds to state-run banks from the exchequer is public money.

A lot of ground needs to be covered and quickly, as the loan write-off and wilful defaulter numbers show. Do the government and the RBI have the will to clamp down on wilful defaulters?

(extracts of newspapers)

CA Yogesh Birla

Director
Birla WP Management Co.
read my blogs : www.YogeshBirlaCA.Blogspot.com

Is Paying Dividend, a Healthy Reinvestment favouring Shareholders

 

Paying dividend may not always be the best option. Many investors are very serious about dividends and they consider receiving Dividends is very important part of their Investing. They invest only in companies that have a good dividend history and avoid other that are not generous enough with their dividends payouts. But a high dividend-pay-out ratio may not always be the best take for investors. A healthy dividend pay-out is often lapped up by markets. The stock gets a thumps up and all parties, the company and its shareholders are happy about the outcome. But dividend largesse may not always be in the favour of investors value creation mechanism. Companies could deploy that cash into existing growth opportunities to remain competitive and best in the game. According to our investing matrix, a company can utilise its cash in four ways.

First, Reinvest the proceeds back into the business

Second, Go in for related acquisition

Third, Repurchase shares and…

Fourth, finally pay out dividends

See how paying no dividend could impact the fortunes of companies; If Infosys had paid no dividends and simply repurchased shares, or developed new software and IT centres, it would have created more value for its Stakeholders, since ROI of their funds / business management is much higher that money in the hands of shareholders. Since investors will use their dividend money to buy other shares, or to buy bonds or to make bank FDR or spending. Other than spending, all other modes of reinvestment by shareholders will be lower than using that money by companies for betterment of their businesses. This concept that Utilising cash for other than dividends, is not the standard thing that is taught in the corporate finance department of our major universities. Why do we debate negatively, rather than applying this simple idea to make business stronger with internal accruals. Fund manager’s preference for no dividends do’not mean that they disapprove dividends that they gets from their investments…. but they vote in favour of more deeper value creation for shareholders.

The one thing I will tell you is the worst investment you can have is Cash. Everybody is talking about cash being king and all that sort of things. Cash is going to be come worthless over time, but good businesses are going to become worth more and costlier over time.

Disclaimer : This is purely a knowledge sharing article, not offering or influencing any deal or transaction or investments.

CA Yogesh Birla

Director
Birla WP Management Co.
read my blogs : www.YogeshBirlaCA.Blogspot.com