Interesting Reads November 11, 2014

Modified on July 2, 2018

An interesting analysis of impact of Whatsapp acquisition on Facebook financials

http://www.bloombergview.com/articles/2014-10-28/whatsapp-gets-a-warm-welcome-into-facebook

The author has analyzed the half-yearly financial results reported by Facebook post acquisition of Whatsapp. He provides some amusing insights of the impacts Whatsapp acquisition had on Facebook. He provides analysis of per user revenue assumptions in the analysis and an accounting concept “Goodwill”.

In words of the author:

So Facebook did an acquisition

  • worth around 11 percent of its market value,
  • that increased its revenue by 0.3 percent,
  • that decreased its net income by 47 percent,
  • and that increased its book value by 67 percent.

China loosens it One Child policy but people are not interested

http://www.bloombergview.com/articles/2014-10-31/china-s-missing-babies

Finally, China seems to be acknowledging that it has gone too far with its One Child policy, which has become a social concern with decreasing social support for people in old age. Imagine the situation of a single child whose parents are also single child. He/she is responsible for caring six people (including two set of grandparents).

China has allowed the couples where either the husband or wife is an only child. However, the couples would have to seek formal permission before having the baby and the permission can be denied as well! It was interesting to read that people are no longer interested as costs of raising a child have gone up significantly and it is becoming unaffordable. Out of 11 million couples eligible under the scheme, only 0.70 million applied. Ironically, only 0.62 million got the approval.

Russia agrees to supply gas to Ukraine

Politics apart, business has to continue.

http://www.bloombergview.com/articles/2014-10-31/putin-loosens-the-spigot-but-not-the-reins

Join 30,000 subscribers & get our "Case Studies" e-book for FREE:

  • Get a Free e-book on "Peaceful Investing" case studies and learn by reading live company analysis
  • Get immediate notification on our future articles & company analysis delivered to your email
  • You will receive the e-book immediately by an email from vijay.malik@drvijaymalik.com.
  • If you do not find our email in the inbox within next 5 seconds, then please search in spam/social/ promotions folders

Follow My Portfolio with Latest Buy/Sell Transaction Updates

  • Historical annualized return (CAGR) of the portfolio 47.59% against CAGR of Sensex of 10.48%
  • We identified companies, which were later invested by Sanjay Bakshi, Mohnish Pabrai, PE funds, Mutual Funds
  • See details of stocks in our portfolio
  • Get updates of buy/sell transactions in our portfolio by email

Please share your comments here:

Bitnami