Why Titan and other Jewellery stocks are going up - Titan share latest news

 

The News Cover: Hi, the leading company of watches, jewelry, and eyewear categories, TITAN's share price increased by 9% today i.e, 7th of Oct. It touched its 52-week high. So, in today's article, we will tell you the reasons behind the rally in Titan's share price. 

The first is that the company recorded good sales in Quarter 2 of the Financial year 2021-22. In quarter 2 of FY22, Titan India Ltd.'s jewelry business increased 78% year on year. The company added 13 new stores in this quarter as well. Also, in the watches and wearable segment, we saw 73% year-on-year growth. Also, in the eyewear segment, 74% year-on-year growth. 

The second reason is the recovery in demand for the company's products. After Covid 2nd wave, a strong recovery in all consumer business has been seen. The companies' sales are touching or crossing pre-pandemic levels. Titan said that except for a few towns, the rest stores were fully operational. Overall, the store operational days recorded 90% more in this quarter. 

The third reason is the upcoming wedding and festive season. Hence the demand for Titan's jewellry and watches may increase in the next quarter. Apart from this, gold prices have been stable in the past few months. Hence, strong festive and wedding season demand will accelerate Titan's growth trajectory. So, investors can be positive about the company's performance. 

Also, increasing vaccinations and unlocking along with upcoming weddings and festive season, investors are positive about overall jewellry sector stocks. Around 11.30 am today, the stock price of Kalyan Jewellers was also 9.43% up. Also, by 11.30am today, Rajesh Exports Ltd- 0.63% up, Vaibhav Global- 1.95% up and Goldiam International- 3.93% up. This was a small update on Titan. 

We would like to remind you that this article is for educational purposes only, and is not a buy or sell recommendation of any kind. Also, we have launched our new trading channel. Here we will explain trading concepts like charts, indicators, futures & options, etc. to all our viewers in a simple manner. 

Why is the share price of Indian Overseas Bank (IOB) going up?

 

The News Cover: Hi, today at 9.20 am, Indian Overseas Bank’s share price increased by almost 20%. Talking about till 11.40 am, the share price of IOB was up by 12.96%. Central Bank’s share price was also 10.14% by 11.40 am. 

In today’s article, we will tell you the reasons behind the sharp rise in these 2 PSU banks. On Wednesday i.e, 29th Sept 2021, the Reserve Bank of India took out Indian Overseas Bank from its Prompt Corrective Action (PCA) framework. The lending curbs and restrictions over IOB will be removed. 

Due to deterioration in IOB’s weak asset quality and operating matrix, in Oct 2015, it was included in the PCA framework. On the decision of removing IOB from the PCA framework, RBI said that the financial superficial board reviewed Indian overseas bank’s previous financial year’s results. They found improvement in asset quality of IOB and not breaching PCA norms. 

Also, RBI said that IOB has given a written commitment to comply with Minimum Regulatory Capital, net NPA, leverage ratio norms. Before this, on 8th Sept 2021, RBI took UCO Bank out of the PCA framework. You must be wondering what PCA framework is. Generally, RBI puts those banks in this framework whose financials are risky. 

This framework judges banks based on 3 parameters. Capital ratios, Asset Quality, and Profitability. Other than IOB, the Central Bank of India is the only PSU bank which is included in the PCA list. After the news of taking out IOB from PCA, investors are speculating that the Central Bank of India can also be removed from PCA. 

This can be a possible reason for the increase in the share price of the Central Bank. These are the reasons why the share prices of IOB and Central Bank went up. I hope you found today's article informative. Remind you that this article is for educational purposes only and there's no buy or sell recommendation.

Do you invest Post Office Small Savings Scheme? Then you must know it

 The News Cover: If you invest in small saving schemes of Post Office, you have to pay different charges for different services. Post office savings schemes are considered to be quite a safe option for investment. Good returns as well as customers' money will be protected. Most people invest money in post office savings schemes. But service charge has been imposed in the post office savings scheme. This charge is taken for new checkbook, account transfer, account statement.

Post Office Savings Scheme-

The post office currently has 9 small savings schemes. These include Post Office Savings Account, National Savings Recurring Deposit Account (RD), National Savings Time Deposit Account, National Income Monthly Account (MIS), Senior Citizen Savings Scheme (SCSS), Public Provident (NFC), Public Provident Fund ), Kisan Bikash Patra (KVP), Sukanya Samridhi (SSY). All schemes have different features.

- It will cost 50 rupees to issue a duplicate passbook.

- There will be a charge of Rs. 20 for issuing account statement and deposit receipt.

--If the certificate is lost or damaged, 10 rupees will be taken as registration fee for issuing passbook.

--There is a charge of 50 rupees for canceling or changing the nomination.

- There will be a charge of 100 rupees for account transfer.

--There is no fee for 10 checks in a financial year for issuing check book in savings account. But after that it costs 2 rupees per check.

- If the check bounces, you will be charged 100 rupees.

Post Office Savings Scheme-

- There will be a charge of 100 rupees for account transfer.

- If the check bounces, you will be charged 100 rupees.

Bank Holidays: The bank will be closed for 12 days this month, see the full list of holidays

 

The News Cover: Coronavirus bans all citizens from going out of the house unnecessarily. But if you have important work in the bank, you must check the bank holiday list every month before going to the bank. There are several festivals in the month of May, including Eid, and Buddha Purnima. Banks in more than one state will be closed these days.

The Reserve Bank of India (RBI) has uploaded the list of bank holidays for 2021 on the official website (rbi.org.in). According to the list, there are 12 days of bank holidays in May this year. This includes the second, fourth Saturday and Sunday of the month.

May 1: Banks will be closed in Kolkata, Kochi, Mumbai, Nagpur, Panaji, Pune, Patna, Chennai, Thiruvananthapuram, Hyderabad, Guwahati, Imphal, Bangalore and Belapur in several states due to Maharashtra Day and May Day.

May 2: Sunday - Banks closed 

May 6: Jamut-ul-Bid - Banks closed in Jammu and Srinagar 

May 7: Second Saturday 

May 13: Eid-ul-Fitr. Banks will be closed in Belapur, Jammu, Kochi, Mumbai, Nagpur, Srinagar and Thiruvananthapuram on this day. 

May 14: Lord Sri Pursuram Jayanti, Eid-ul-Fitr. Banks will be closed in Belapur, Jammu, Kochi, Mumbai, Nagpur, Srinagar and Thiruvananthapuram on the day. 

16 May: Sunday 

22 May: Fourth Saturday 

23 May: Sunday 

26 May: Buddha Purnima. Banks will be closed in Agartala, Belapur, Bhopal, Chandigarh, Dehradun, Jammu, Kanpur, Kolkata, Lucknow, Mumbai, Nagpur, New Delhi, Raipur, Ranchi, Shimla and Srinagar. May 30: Sunday

Customers will get online banking services even if the bank branch is closed these days.

What are Mutual Funds and How to Select and Buy Mutual Funds in 2021?

The News Cover: Property prices are too high, FD Interest Rates are too low and you don't want to buy jewellery. But what if I tell you there is a Solution! Yes, I am talking about Mutual Funds. The same ones that are... 'Subject to market-risk. So you need to read the scheme related documents carefully before investing.' But what is this risk? How are people still making money with Mutual Funds? So Ladies & Gentlemen, it's okay if you don't know anything about Mutual Funds because in this article we are going to see... 

1. What are Mutual Funds and what are the different types? 

2. 4 Rapid-Fire facts that you must know before getting started. 

3. A step-by-step tutorial, where I'll show you how to buy a Mutual Fund using Zerodha's Coin app. 

4. And towards the end, I'll give you a Bonus Tip that'll help you convert your time into actual money. 

Just so that we are clear, no Mutual Fund is sponsoring this article. So I don't care which Mutual Fund you choose. I'll just give you the right information as if I am talking to my younger siblings about investments and I hope it helps you learn something too.  

Let's begin. If you are a new investor, welcome to the club! Let's quickly first understand what are Mutual Funds. A Mutual Fund collects money from people like us, say Rs.500/- from me, Rs. 500/- from you and makes a money pool. Then a Fund Manager, uses this pool to invest in Stocks, Bonds and other assets so that your money can grow. You don't have to worry about where it is being invested because the Fund Manager takes care of all of that and in return, they charge you a commission anywhere between 1% to 3%. And the returns/profits of those investments are then redistributed among people depending on who invested how much and for how long. If you want to invest long-term, then Mutual Funds can be great because instead of sitting idle your money will go out and make more money for you. But how do we know that a Mutual Fund company will not run away with our money? Because Mutual Funds are regulated by SEBI. So running away is highly unlikely. But yes, all of us tend to trust some Mutual Funds more than others. 

I'll show you how to look out for such funds in the next section. First, let's have a look at the 3 major types of Mutual Funds that are available. 

1. Equity Funds. These Mutual Funds invest in stocks, shares of companies. They are considered moderate to high risk, but they can also give high returns. 

2. Debt Funds. These MFs invest in Debt Instruments like government securities, bonds, debentures etc... These are for people who want low risks, but steady returns. 

3. Hybrid Funds. As the name suggests, they are a hybrid. They invest in both Equity and Debt. May be 50-50 or 70-30. Their aim is to give you moderate returns at moderate risk. Then there are other funds, like... Sector Funds, Liquid Funds, Tax-Saving Funds ... which you'll understand on need-per basis. But for now, let's stick to the basics and remember that these are how they are majorly classified. Now before I show you how to buy a Mutual Fund, here are some Rapid-Fire facts. 

1. Equity Mutual Funds can be further classified into.. Large-Cap, Mid-Cap and Small-Cap. Large-Cap schemes invest in big well-established companies, so naturally the risk is less. Mid-Cap is moderate risks and moderate returns. And Small-Cap Mutual Funds invest in smaller companies. So the risk is high, but the returns can also be high. If you are new to investments, then LargeCap Mutual Funds can be a good place to start. 

2. If you want to invest short-term, say 1 or 2 years then instead of Equity Mutual Funds, look for Debt Funds. They have low risk compared to Equity Funds, plus they can give more returns than a bank. There is a third category of Mutual Funds called Index Funds. They are passively managed funds, which means they don't have a Fund Manager in between and hence the expense ratio, which is the commission you have to pay for Index Funds is very less (<0.1%). Even Warren Buffet recommends Index Funds as a safe haven for long term savings.

 I'll show you how to invest in an Index Fund in the next segment. And finally, there are 2 ways to invest in a Mutual Fund... LumpSum and SIP. LumpSum is when you invest a huge amount, say Rs. 1 lakh at the same time. And SIP is Systematic Investment Plan, where you choose say Rs. 500, Rs. 1000 or Rs. 2000 and that amount every month from your Savings Account will move to your Mutual Fund account. If you are new, then instead of putting all of your money LumpSum, starting a monthly SIP is a safer option. But wait! Who decides how much money should be invested every month? You get to decide it, depending on your goals and using this SIP calculator. 

For example, suppose my goal is.. in the next 20 years, I want 1 Crore Rupees and I am expecting a rate of return of say 12%. Now Mutual Funds are expected to give better returns than 12, but I am being a little conservative here. So I am expecting a 12% rate of return. As you can see, for that I need to start a SIP of Rs. 10,000 per month. Similarly, depending on your long-term goals, you can use this SIP calculator to help you decide how much you need to invest every month. 

 I have left the link of this calculator, Here. So make sure you keep these 4 Rapid-Fire facts in mind, before you start your Mutual Fund research. Now let me tell you a step by step procedure of buying a Mutual Fund. If you want to start investing in Mutual Funds through the Zerodha's Coin app, then the first step is to open a DEMAT account through Zerodha. Let me tell you this.. you don't need a DEMAT account if you are investing in just Mutual Funds. But, I use Zerodha for Stocks and even though I have used other apps in the past for Mutual funds, now I want all my stocks and Mutual Funds in the same account. But you don't have to hurry. 

Wait read till the end of this article where I'll tell you it's Pros and Cons and if you think this is the right platform for you, then you can use, which is India's number 1 discount broker. So the first step is to enter your phone number and the Zerodha team will help you with the DEMAT account opening process. It's all online and takes about 15 minutes. Anyway, after you have opened your account, go to your PlayStore and search for Coin by Zerodha and install it. And login using your KITE details that Zerodha provides you after account opening. Once you login, go to the 'Discover' tab. Here, you can search for Mutual Funds based on the types we discussed earlier... Equity, Debt, Hybrid, Index Funds... In Equity also, you can select say.. Large-Cap and see the various options available. As you can see, there are so many Mutual Funds listed. Now know this... There is no one SUPREME LEADER Mutual Fund that is BEST for everybody. The advantage of all of this variety, is that you get to pick, which Mutual Fund is best for you. Here are some parameters that can help you decide. 

 #1: AUM - Asset Under Management which is the total market value of investments that a fund manager is managing on behalf of his/her clients. For some investors, larger AUMs serve as a function of trust. And to make your job easier, the COIN app currently displays Mutual Funds, in decreasing order of their AUMs. 

 Next, you MUST check if the fund is 'Growth' or 'Dividend Interim Payout'. In Dividend Payout, dividend, which is any profits the company shares with you, are transferred to your bank account. But 'growth' means, you are telling the fund company to invest back these dividend payments. I prefer 'Growth', especially for long-term investments because I don't need any money now. I would rather re-invest and get more money later, thanks to the power of compounding. 

 The third parameter to check, is if it is a 'Direct' plan or a 'Regular' plan. Some apps mostly sell 'regular' plans where the expense ratio i.e the commission you have to pay are higher. But on the Zerodha's Coin app, I have mostly found 'Direct' plans in which you are buying the fund directly from the Asset Management Company, so you don't have to pay additional expense ratio to any intermediary advisor or broker. 

 So before buying, double-check that it is a 'Direct' plan. Some other parameters you need to check that'll help you decide whether a Mutual Fund is good for you or not are... 

 CAGR which is the Compound Annual Growth Rate, 

 Exit Load: Fees you need to pay incase you exit the scheme, before a certain time period. Expense Ratio: How much the Fund Manager will charge you for maintaining your account. As discussed earlier, it can be between 1 to 3%. Next, check out who the Fund Manager is and feel free to read more about this fund manager's history.  And ofcourse, Fund Holdings will help you see what companies or sectors this Mutual Fund is invested in. 

On the Zerodha's Coin app, you'll also find some videos like these which tell you more about that Fund House. And at the bottom, you'll find the Disclaimer and those infamous, 'Scheme-related' documents. Make sure you check these out. Now, let'd do some buying. Let's assume I want to start a SIP for Rs.1000 and I want to invest in an Index Fund. Now, I'll go back to 'Discover', select 'Index Funds' and let's say I want to go for ICICI Prudential Nifty Index Fund-Growth. 

I am in no way recommending you to buy this fund. Just for this demo I am. I like that the expense ratio of this fund is 0.1% which means I am paying very less commission on this fund. Now, before we go ahead, your homework is to explore the Zerodha's Coin app and tell me what other Mutual Funds have Expense Ratio lesser than 0.1% in comment box. I'll be waiting to read your comments. Going back to buying... Just a less expense ratio is not the only factor to buy a Mutual Fund. So I'll check the other parameters as well. After that, if you want to invest just one-time in lump-sum then select 'Buy'. But I want to start a SIP of Rs.1000, so I'll select 'SIP'. It says that the minimum amount is Rs. 100. But first you need to add some funds. 

You can use GPay, UPI or NetBanking. You can even withdraw money from your account here. After the transfer, it may take some time for the amount to reflect here. Since, I want to start a SIP of Rs. 1000, I am going to enter 1000 here. Frequency, monthly. 1st of every month and yes, start SIP today. Until I cancel it. Now, this feature, 'Automatic Step Up' as of today you'll only find on the Zerodha's Coin app. But what does it do? Let's assume that you are starting a SIP of 1000 rupees today, but every year you want to increment this amount by a certain percentage. Because your salary will increase, so your investments should also increase. You can enter that percentage here, say 5% or 10%. I'll enter 10. your SIP amount will increase by Rs.100 on... you need to select the month, say... 1st of March every year. And every year on 1st of March, your SIP will increase by that much percentage. 

If you want more clarification about this feature, then you can click 'Learn More' to know more about it. And if you don't want the Automatic step-up option then just uncheck it. But in my opinion, it's a good option to have for long-term savings, because you don't have to worry about modifying your SIP every year. So everything is Set. All I need to do is.. hit the 'Create SIP' button. But before you do, remember... Mutual Funds are subject to market-risk, so read the scheme related documents carefully before investing. I click on 'Create' and my SIP is created. Now, if you place your order within the cut-off time on Market Days, then it takes around T+1 days for the units to reflect in your portfolio. 

 Meanwhile, I'll go back... Go to 'Investments', go to the 'Orders' tab and I can see that my order is in 'Pending' right now. But once the units are allocated to me, I can see them here under the 'Portfolio' tab of 'Investments'. Suppose, after a few weeks or months or years, I decide that I want to modify my SIP. Then I just need to go to the 'SIP' tab, select the SIP and I can either Modify, Delete or Pause it depending on what I want to do. And that's it. 

 That's how you can buy your first Mutual Fund. Now before I give you the Bonus Tip, Online, every Investment Guru is telling you... POWER OF COMPOUNDING!! The sooner you will invest your money, the more returns you'll get, the more money you'll make exponentially. So invest NOW! The 8th wonder of the world... COMPOUNDING! Relax. It doesn't mean that you'll put all your hard-earned money in any random mutual fund. The purpose of this article, is to not make you buy your first Mutual Fund today. Before you invest your money, you need to learn... the Basics of Finance, you need to open your account, explore the mutual funds present on the home page, compare their parameters, invest little amounts, say Rs. 100 or Rs. 200 and observe the market first. 

So today's Bonus Tip is this... Before investing your money, invest your time to learn first. Please don't be like those people who waste their precious time on... Instagram Reels or Twitter Wars and when it comes to investing their hard-earned money, they want some random advisory platforms to give them 'tips' or they wait for some 'top-rated' mutual funds video. That is a sure shot way to lose money. But YOU have read this article so far, so you know how to use your time wisely. I hope the information we've shared today helps you in figuring out which Mutual Fund is best for you. Because remember, your money is your responsibility.. Nobody else cares.

Says Letter "This Is Just A Trailer" Found Along With Explosive Outside Mukesh Ambani Residence

The News Cover: we're shifting focus now a car with 20 gelatin sticks that was found near Mukesh Ambani's house in Mumbai has triggered a big security scare what's added to this mysteries and note left by the suspects.

 who said that this was just a trailer for Mukesh bhaiya security has been beefed up at Antalya and the investigation currently underway takes a look is there a threat to India's richest man is someone looking to scare him at his home if not then what explains this suspicious suv a load of dangerous explosives and a threatening handwritten letter found outside.

the billionaire's Mumbai home the disturbing threat on wheels unfolding in the shadow of Antilla the towering residents of India's wealthiest family but let's first traceback for you how it,

began it started at 1 am on Thursday when this vehicle was detected suspiciously positioned not far from the Ambani home the man inside the vehicle but he remains unidentified at this time, two vehicles can be seen in the footage a Scorpio and an Innova the driver parks the Scorpio and leaves in the Innova,

who is this man in these images heavy security and dog squads were rushed to the spot an unusual scene in a locality otherwise posh and protected we are present outside the anthill and you can see how Mumbai police officials are present for security also the whole road leading to the bungalow is completely sealed and also there is a heavy presence of Mumbai police official let's get you closer now to the suspicious vehicle in question where on Thursday the bomb squad carefully opened it and exposed the scary contents

a Mahindra Scorpio inside it a package with 20 gelatin sticks explosives that need a detonator to work but disturbing nonetheless but perhaps most damningly a letter recovered from inside the car placed in a Mumbai Indians bag a letter with a scary script of threat addressed to Neeta bhabhi and Mukesh bhaiya. 

The letter says this is just a trailer of what is yet to come but who could this letter be from and why this threat to Mukesh Ambani and his family disturbingly the Mumbai police has said they have found number plates inside the SUV matching number plates used in Mukesh Ambani's security vehicles a dangerous indicator that the Scorpio may have intended to attempt entry. 

into the antelope compounds foreign reliance industries reacting to the threat has said that they have confidence that the Mumbai police will carry out a thorough probe quickly as the investigation continues and while it is too early for conclusions of any kind Mukesh Ambani's name has echoed in the political landscape recently first at the farmer's agitation and then by Congress leader Rahul Gandhi to attack the Modi government but the biggest question now remains the details of the investigation

who brought the SUV who is this man in the driver's seat who wrote the letter what is this entire threat really all about the Mumbai police investigating a threat to industrialist Mukesh Ambani have learned that the green Scorpio in which gillington sticks and the letter was found was stolen from vikrali on February 17th a case was registered by the car owner on February 18th while the accused involved tried to remove the chassis number of the vehicle it was somehow retrieved by police officials Mumbai police has formed over 10 teams to investigate this case.

Mukesh Ambani, the richest man in Asia, left behind the Chinese industrialist

 

The News Cover: Mukesh Ambani again tops the list of richest people in Asia. Late last year, Mukesh lost the top spot to Chinese industrialist Jung Shanshan. Mukesh, the head of El Reliance Group, has once again emerged as the richest man in Asia as the value of his assets plummeted to 2.2 billion.

For the last two years, Mukesh has been the richest man in Asia. However, at the end of 2020, according to Forbes, Jung 'sname came up at number one in the list of richest man in Asia. Mukesh came down three steps. But within two months, Mukesh took over his old place.

Jung is the head of Nongfu Spring, a beverage company in China. He became the richest man in Asia, surpassing Chinese technology companies like Jack Ma. In January 2021, Jung was also the sixth richest person in the world. Nongfu Spring's share price peaked in January. However, in the last one week, the share price has suddenly dropped by 20 percent. According to Bloomberg, the agency that calculates the wealth of the world's billionaires, Mukesh's wealth is now worth $8 thousand Crores US dollars. And Jang's property is $7660 US dollars.

How Amazon's Super-Complex Shipping System Works

 

News Cover: About 13 million times per day, someone clicks the order button on amazon.com. Some days later, all, or at least almost all, of those 13 million orders arrive at their destination. But what happens in between? How does Amazon get a package to you? Well, it depends… a lot. In fact, Amazon’s fulfillment system, their shipping system, is more complicated and convoluted than that of almost any logistics company. 

It’s far more complicated than that of UPS, or FedEx, or DHL, or any other major delivery company. In a counterintuitive way, this complicated and convoluted fulfillment system is a crucial component of the secret sauce that’s driving Amazon’s success. They’re striving to make the consumer experience simple through behind-the-scenes complexity. 

So, back to the question: how does an Amazon package get to you, and the answer, it depends. It depends first on who’s fulfilling the package—Amazon or the seller. About one fourth of sales in the US are fulfilled directly by the seller, as most products on Amazon are listed there by a third-party, which can send packages directly through UPS, FedEx, the postal service, or another consumer delivery company if they choose. 

Amazon has nothing to do with the fulfillment of those orders, and the process looks largely the same as with any other e-commerce company. What’s different is how the other three quarters of Amazon packages in the US get to you—the ones that are fulfilled directly by Amazon. The path that these take depends first on how big the package is. 

You see, Amazon’s fulfillment centers are more-or-less split into three categories: small sortable, large sortable, and large non-sortable. That first category, small sortable, represents the bread and butter of Amazon’s business. These are items that are less than 12 by 16 by 6 inches or 30 by 40 by 15 centimeters in size, and about 25 pounds or 11 kilograms in weight. 

The next category, large sortable, is basically anything larger than this up to a weight of about 60 pounds or 27 kilograms. Now, the reason for the split between large and small is because the fulfillment operations of smaller items is much easier to automate—they can fit on conveyor belts and automated robots and other tools that lower the company's reliance on humans. 

For example, Amazon uses a robot called the Kiva which fundamentally changed the way the job of the company’s pickers, the people who find and grab an item out of storage, worked. Previously, pickers would walk some 10 to 12 miles or 16 to 19 kilometers a day through cavernous rows of shelves. 

Now, at least in their most advanced fulfillment centers, a robot picks up an entire mobile shelf, on which a required product is located, and transports it to the picker, who picks it. Essentially, rather than the picker going to the shelf, the shelf goes to the picker. 

With these robots, one person can pick three to four hundred items an hour rather than the one hundred or so that was possible on foot. Of course, fewer humans in the mix is good for Amazon, given the amount of criticism it receives for its treatment of workers, and also because humans, even low-paid ones, are expensive. The fulfillment process for larger items, though, is just tougher to automate cheaply, so the company chooses to segment the two processes out, and runs a far more manual and distinct fulfillment system for larger items. However, in most, but not all cases, the fulfillment centers for large and small items are under the same roof, even if they’re operated completely independently. 

Of course, the ideal scenario for Amazon would be to have every single item they sell in every single warehouse, but that’s not realistic. Therefore, they use predictive modeling to try to put items closest to those who are likely to buy them. The US is far from homogeneous, so demand for different products varies from place to place. 

For example, in Miami, people probably aren’t looking to buy many ice scrapers for their cars. Meanwhile, in Fargo, North Dakota, demand for this item is almost certainly quite high. It’s therefore no wonder why that, if you look at the data, the colder the city, the faster you can get an ice scraper on Amazon. That is Amazon’s predictive stocking at work. 

While most examples of this system are far more nuanced and far less intuitive, the concept is simple: their algorithms put products closest to the consumers most likely to buy them—something only possible at this scale thanks to modern big-data analytics. Of course, there’s then that third category of products—large non-sortable. The distinction here is because Amazon likes to aggregate products together into as few packages as possible—unsurprisingly, fewer packages equals lower costs. 

So, both the sortable categories include anything that could possibly be packaged together in a single box. The largest items—say a 70 pound beanbag, for example—are shipped from the large non-sortable fulfillment centers. 

These facilities are even less automated than the large-sortable ones, and even include workers who create custom boxes for odd-sized items. In Colorado, for example, this is a completely separate facility, located in Aurora, from the sortable fulfillment center in Thornton. Now, some large items will go directly into the system of a third-party provider, typically XPO Logistics, which would deliver these bulky items to their final destination, while others will continue on in Amazon’s system. 

The portion of large non-sortable items not sent to a third party logistics provider, plus all the large and small sortable packages would next be sent to a regional sortation center. In Colorado, those two fulfillment centers send their packages to a single sortation center, located just minutes away from the Aurora fulfillment center. This is a massive facility, almost half a million square feet in size, with robots running around, dropping packages into different chutes, which each represent a different grouping of zip codes. 

Now, not all the sortation centers are quite so automated, but each outputs the same thing—pallets of packages going to roughly the same place. What happens next, though, once again, depends. A package heading to Miami, for example, would end up on a pallet with other packages for Miami, which itself would end up on a truck carrying pallets for Tampa, North Carolina, Houston, Baltimore, New York City, Connecticut and a few other cities and states to the east. This truck would then drive the 15 minutes to a waiting 767 cargo plane at Denver International Airport branded in “Prime Air” livery. Now, Amazon Air started in 2015 with its lease of about 20 aircraft from Air Transport International and has since grown to almost 70 aircraft—all leased from other airlines. 

However, the company recently announced the purchase of their first 11 aircraft—also 767, bought from Delta and WestJet—meaning they’ll soon both own and operate their own aircraft. Those eastbound pallets would all be loaded around 4:00 am, before the aircraft’s scheduled departure time of 4:54 am. 

Now, anyone familiar with UPS or FedEx’s operations will know why this departure time is strange. If UPS was transporting this package to Miami, at least at its fastest speed, it would have departed on an aircraft the previous night at 9:40 pm, been flown to Louisville, sorted through the company’s hub, then flown to Miami, arriving at 5:50 am. FedEx would have done roughly the same, just through Memphis instead. 

That’s because FedEx, UPS, and most other major delivery companies are oriented towards overnight delivery—they make a big chunk of their money charging big rates to take a package from one part of the US one day and deliver it to another the next day. Amazon, meanwhile, built their Prime brand off of the promise of two-day delivery—ordering a package on a Monday and getting it on a Wednesday, for example. 

While they’ve since strayed from the rigidness of that system, the fastest shipping they’ll offer for an item not stocked at a local fulfillment center is two days, meaning they don’t have to worry about being able to get a package from Denver to Miami overnight. That’s why UPS and FedEx’s planes take off in the evening, while Amazon’s leave in the morning. 

So, that means it’s about 9:00 am by the time that Amazon Air plane from Denver gets to Cincinnati airport each day. Through the morning hours, a dozen or so aircraft land in Cincinnati, and this timing gives the company a major advantage. Cincinnati airport is also home to DHL’s main Americas hub, but DHL, like FedEx and UPS, conducts its operations primarily overnight starting at around midnight, when dozens of their aircraft from all around the world land and unload. 

Over the next few hours, packages and pallets are sorted and loaded onto other aircraft, which all tend to take off by 8:00 am. That means DHL only really uses their facility during the overnight hours, so Amazon leases it for daytime use. 

While Amazon is building their own, larger facility at Cincinnati airport, this partnership gave them a huge head-start. So, each day, between 8:00 am and 4:00 pm, Amazon’s there, turning their planes around, and sorting pallets from where they come from, like Denver, to where they need to go, like Miami. That Miami flight takes off each weekday at 2:15 pm, and then it lands in Florida just before 5:00 pm eastern time. Now, not every Amazon Air itinerary looks like this. 

In fact, while UPS and FedEx route almost all of their flights through their Louisville and Memphis super-hubs, or through some of their secondary hubs across the country, only 20% of Amazon Air’s flights go through their main Cincinnati hub. That’s because, with the orientation towards two-day delivery versus one, they just have more time. The more time means that, in order to service the entirety of Florida, Amazon only needs to fly to three destinations—Miami, Tampa, and and Lakeland. That’s because Amazon’s flights to these airports typically land by 5:00 pm, meaning there’s a whole twelve hours before packages have to be at the local delivery center for the final destination. 

The entirety of Florida is within an eight-hour drive of Lakeland, meaning Amazon can deliver to all of Florida by only serving effectively one, but in practice three airports. Meanwhile, FedEx, for example, flies from Memphis to Fort Lauderdale, Fort Myers, Jacksonville, Tallahassee, Tampa, and Palm Beach, then, from Fort Lauderdale, it operates feeder flights on smaller aircraft to Key West and Marathon. 

So, in summary, in order to serve all of Florida, this is what FedEx has to do and this is what Amazon has to do. The required number of destinations for full coverage is greatly reduced by orienting for two-day delivery, and this also means that Amazon doesn’t have to route every flight via one main hub. 

Because they operate to far fewer destinations, it’s much easier for Amazon to fill a plane from California, for example, exclusively with packages destined for Florida, since while a given UPS or FedEx flight carries packages from or to just one city, a given Amazon Air flight likely carries packages from or to a whole state or region. 

Therefore, Amazon Air has flights from all these airports to Lakeland, meaning that, while a package from Denver would have to route via Cincinnati, one from Los Angeles or Dallas or Chicago could fly direct. With a full hub-and-spoke strategy, like that of UPS or FedEx, a package would have to be loaded and unloaded from aircraft twice, and sometimes more, while Amazon Air’s nonstop flights only require loading and unloading once, which reduces cost, and can fly packages direct, which also reduces cost. This is how Amazon can transport packages by air more efficiently than UPS or FedEx. 

The airplane, however, is just one of five routes that an Amazon package could take onwards from the Denver sortation center. For those that are to be delivered locally, in the Denver area, they’ll be driven to one of four delivery stations for Denver. There, they’ll be loaded into smaller delivery vans, operated by independent companies or individuals contracted by Amazon, which will take the packages to their final destinations. 

This is the one and only case in which an Amazon package is handled by Amazon logistics from start to finish, and it’s generally how their packages are delivered within major urban and suburban areas. Only a slim majority of their overall package volume is delivered this way, though, as when you leave major urban areas, things get a bit more complicated. 

Now, a package heading outside the Denver area with a later delivery date, or with a destination within the greater Rockies region, would end up on an Amazon-branded, but independently operated semi-truck. For example, packages to the Aspen area, about a three to four hour drive into the mountains, leave at around 1:00 am each night. Early in the morning, however, at around 5:00 am, they arrive at the local post office and from there, they’re fully transferred into the United States Postal Service system for final delivery. 

You see, in less populous areas, like the mountains of Colorado, it just doesn’t make sense for Amazon to operate their own last-mile delivery. They need a certain amount of scale for that to be cheaper than the alternative, and, at least right now, that scale is only possible in major metro areas. 

Therefore, they need alternatives for smaller cities, towns, and rural areas, and that alternative is more often than not the USPS. That’s because the postal service charges very low rates for last-mile delivery, assuming Amazon transports the packages to the local post office themselves. 

While exact numbers aren’t publicly known, estimates indicate the USPS charges Amazon about $2 per package for last-mile delivery—about half of what other delivery companies would for the same service. After all, the USPS services every address in America, so wherever Amazon needs to deliver, the USPS is going there anyways. 

That’s why for smaller places that still have a decent volume of packages, like mid-sized towns and cities, USPS delivery is often the cheapest option for Amazon. But then there’s that next step down—the most rural places in America. Everything that can’t be cheaply delivered by Amazon or the USPS, typically because they’re destined for low-density areas where you couldn’t even fill a truck to send to the local post office, or because of capacity or speed reasons, is sent through UPS. 

Right now, it’s believed that about 20% of Amazon’s packages end up delivered by UPS. In Colorado, a package destined for the most rural areas, like the western edge of San Miguel County, for example, would take this route. It would cost Amazon far more, and they’d likely end up losing money on the cheapest items, but it’s what’s required for them to be able to service every address in the US quickly. 

No matter which of these routes a package takes, the end result is, at least hopefully, the same—UPS, the USPS, or Amazon itself drops off a package at its final destination, after a few days of travel across the US. It’s a very simple process from a consumer perspective, but the behind the scenes is incredibly complex. The complexity is what’s needed, though, for a business who’s whole value proposition is to get anything to your door quickly and cheaply. 

The core of Amazon, their competitive advantage, is now logistics, to the point where many experts believe that the company will start offering delivery as a service to other companies in the coming years. They believe that they’ve perfected their system enough that they’re going to take on UPS and FedEx. 

Of course, Amazon still has competitors, which are going after the company as aggressively as ever. Target, for example, has been able to build a delivery system with similar speed through completely different means—ones that are far simpler. They’ve essentially turned each of their 1,900 stores across every US state into a fulfillment center. 

They send employees out into the aisles who pick, pack, and ship online orders. That means that their packages never have to travel very far at all, and so they can take advantage of cheap and quick ground shipping from UPS, FedEx, and other more traditional providers. Some 80% of the company’s orders are fulfilled directly from its stores and now Walmart is also adopting this direct-from-store fulfillment system as well. 

So far, though, Amazon believes in their system of simplicity through complexity, and they’re making moves to further expand the system within the US and emulate it in Europe, where they recently opened their first air hub in Leipzig, and put their first two freight aircraft online in November, 2020. 

UPS, FedEx, and the other major consumer delivery companies are already well aware of just how big a threat Amazon poses to them. Amazon has managed to build a 21st-century logistics network using 21st-century techniques and technologies, and, of course, part of the threat comes from the company’s market dominance, but most is because Amazon is innovating in a way others aren’t. 

The way FedEx and UPS move packages today is largely the same way they did decades ago, but Amazon’s system is only possible through innovations that allow them to manage such a massive, complex, and convoluted system. 

This is all to say: if you’re worried about Amazon’s growing position as the one-stop-shop for the world, be worried, because they’re only getting better at it. What Amazon’s rise proves more than anything is that, like it or not, online is the new main street. 

Therefore, just as you’d be concerned with what your store-front looks like on main street, you should be concerned about how your web presence looks. Now, in the case of email, having a non-custom address is the equivalent of having a dirty sign—it works, but it’s not pretty. 

That’s why you’ll notice that most professionals use custom email addresses—something that ends in something like @wendover.productions. 

That’s a domain that I bought through Hover, made possible thanks to their over 400 unique domain extensions that let you go way behind .com, .org, or .net. After getting that domain, it took about two minutes to set up a custom email address for myself and everyone else who works on the channel. 

I can’t count the number of times when someone has complimented our email addresses, as weird as that sounds, and so whether you run a business, or just want a better email for yourself, it’s worth getting a custom one with Hover. So, head to hover.com/Wendover to get 10% off your first purchase of a custom domain or email address, and you’ll be supporting the channel while you’re at it. 

Ratan Tata Visits Pune To Meet Former Ailing Employee

 

News Cover: Social media users are full of praise for Ratan Tata. This is because Ratan Tata quietly travelled to Pune to visit an ailing former employee. Social media users were surprised at his kindness and praised him. 

83-year-old Ratan Tata had quietly travelled from Mumbai to Pune. In Pune he visited the 'Friends Society' to meet an ailing former employee who was not well since 2 years. Yogesh Desai clicked his picture and shared it on LinkedIn on 4th January. 

Since then, his post has gone viral with comments praising Mr Tata for being kind and humble. Everyone thought that since Mr Tata is such a famous businessman, he would be accompanied by bodygaurds. However, he visited Pune without any reporters. He went alone and returned back to Mumbai. Desai said there is no other businessman in India as humble and kind as Mr. Tata. 

Desai also said that all entrepreneurs should learn from Mr Tata being a millionaire is not important. But one should be kind and humble. Some social media users thought that Yogesh Desai had met Mr. Tata. 

Yogesh Desai said he had not met Mr. Tata. His friend resided in the same building where Mr Tata visited his ailing employee. Desai said, "I just saw Mr. Tata and clicked his photo and shared it on social media. 

The post garnered approximately 1,70,000 reactions in two days of being posted. One user commented that Mr. Tata is truly an inspiration for everyone. He always helps his current and ex-employees. He empathises with his employees. In difficult times, he does not abondon them and helps them out. Another user commented, "We are proud of him and we salute him!!” 

Have you also received notice from Income Tax Department?

The News Cover: Most people get a notice from the Income Tax Department. With technology, now it has started coming on people's emails instead of registered letters. Although people are uncomfortable with the notice coming from the Income Tax Department, but do not panic by seeing this notice.

A taxpayer will no longer have to go round the tax office to answer the income tax notice. The government has started the National E-Assessment System, giving relief to the taxpayer. The taxpayer can now reply to the income notice right from home.

After the introduction of the e-assessment system, no taxpayer will have to present himself personally in the income tax office. 

 If you have not filed your return by the deadline, in such a situation, you can get an automatic notification from the Income Tax Department. You get this notice before the end of the assessment year for which the return is due.

What should taxpayers do?

Taxpayers need to verify the information provided and verify it with the Income Tax Department. You will also have to file an answer on the income tax website. The response needs to be filed within the stipulated period which is generally 30 days from the issue of such notice to avoid automatic adjustment by the Income Tax Department. 

Documentation ID number required on every communication

CBDT has said that it will have to be carefully checked before giving any information in the e-assessment system. Document Identification Number (DIN) will be present in all communications and notices for e-assessment. By looking at the documents based on these numbers, it will be known who has issued them. This will record of every communication. Without this, any kind of communication will be considered wrong. The Central Board of Direct Taxes (CBDT) launched DIN on October 1, 2019. 17,500 numbers were generated on the very first day of launching the system. 

Yes Bank Founder Rana Kapoor Arrested | News Cover

News Cover: Yes Bank is in a very big financial crisis. Last week the RBI imposed a withdrawal limit of Rs 50,000 for a month. This was due to all the bad loans given by the bank. 

     Yes Bank Founder Rana Kapoor has been questioned by the Enforcement Directorate (ED) for more than 20 hours. Friday night the ED raided Kapoor’s house. The ED officials said that Kapoor was involved in a money laundering racket where he set up 20 shell companies. 

    There were many companies that wanted loans. A prominent company such DHFL gave a Rs 600 crore kickback to kapoor's wife, through one of the shell companies. After this Yes Bank gave them a loan of Rs 4,450 crore. 

Read More: Bollywood Cancels Many Films Due to Coronavirus | News Cover

     Giving out loans like this is completely illegal. The ED even raided the houses of his three daughters. Officials say that the entire family is involved in this scam. Kapoor has been arrested by the ED. Kapoor's daughter Roshini Kapoor was leaving for London yesterday at the Mumbai International Airport. However she was stopped from leaving the country. 

     

     The State Bank of India is now trying different options to save the Yes Bank. 

Why Big Dairy Companies Struggle In India? | News Cover

Why Big Dairy Companies Struggle In India:

News Cover: You know who's got milk? India. India is the world's biggest producer and consumer of dairy. In 2018 alone, India produced 186 million metric tonnes of milk — about 410 billion pounds and 22 percent of the milk produced globally. Almost all of that is consumed domestically thanks to India's dairy-heavy diet — think creamy curries, yogurt drinks, and a popular type of butter called ghee. 

      A quick note before we proceed: this includes milk from buffaloes, which are an important source of milk in many developing countries. the point is that India loves milk. In 2011, the French dairy company Danone hoped to capitalize on this by opening a division in India. Danone opened its own processing plant in Haryana and tried to capture some of India's 1.2 billion dairy lovers. 

    But less than a decade later, Danone shuttered their dairy business in India. That same year, the company made 28 billion dollars worldwide and was in the top three global dairy companies. With all this success, elsewhere, why did Danone's dairy business sour in India? Let's start with some background on Danone. 

      Their business is broken down into three categories: specialized nutrition, like supplements and formula for babies; bottled waters and seltzers; and dairy and plant-based alternatives. That one makes up over half of their global sales, but it's also the one that failed in India. Danone does still sell specialized nutrition products in the country, but they don't break out those sales figures separately. Oh, and yes — this is the same company as Dannon in the U.S. The company decided to rebrand to make the spelling less confusing for American consumers. 

      Anyway, now for some background on India's dairy industry. There are about 75 million dairy farmers in India. Most of them are women who own one or two buffaloes or cows to supplement the family's income. Nearly half of India's milk is not sold but consumed by the farmer's household. This makes India's dairy industry far more fractured and localized than other countries where Danone operates. 

    Take the company's native France and one of its biggest customers, the U.S. Each has far fewer dairy farms with herds that dwarf India's one or two animal average. This was Danone's first big problem in India: sourcing milk is difficult. Of the half not consumed by farmers' households, only about 15 percent goes to big organized companies or government-run cooperatives. The rest goes to hundreds of small, local milk processors. Even the largest companies like Amul, Mother Dairy, and Nestlé have tiny percentages of the market, and they've been there for decades. 

    Market research firms Mintel and Euromonitor declined to release specific market share numbers to CNBC. However, a 2016 piece in The Economic Times of India citing Euromonitor put the figures at about 7 percent for Amul, 3.7 percent for Mother Dairy, and 2.9 percent for Nestlé. In short, tapping into the existing dairy infrastructure is effective but time-consuming. Imagine the effort of contacting dozens or hundreds of local and regional dairies, processors, or individual farmers. 

     But establishing a separate supply chain altogether is very expensive — a lesson Danone learned the hard way. And when Danone did get milk, the company focused on the wrong products. Danone pushed plain yogurt and flavored yogurt drinks — popular in places like the U.S. and France with high-profit margins to boot. But in India around the time when Danone arrived, yogurt comprised only 7 percent of the dairy consumed. The real money was in ghee, a type of clarified butter, and plain old fluid milk, a product with razor-thin margins dominated by those hundreds of local small-scale producers. 

     Analysts explained to CNBC the simple reason why Indian consumers shunned Danone's prepackaged yogurt. And if Indian consumers did want to buy premade yogurt, they had a slew of cheaper options than Danone. Dairy never accounted for more than 10 percent of Danone's sales in India, a far cry from its global 50 percent. Its specialized nutrition arm picks up the slack, and the company announced a renewed focus on that division when it shuttered its dairy operation. Meanwhile, two of their biggest competitors, Amul and Nestlé, made nearly five billion and 750 million from dairy, respectively. But not all hope is lost for Danone's dairy in India. 

       In January 2018, at the same time that Danone ended its dairy production there, the investment arm of the company announced its part in a 26.5 million dollar investment in Epigamia, an Indian yogurt startup. This could be a sustainable move for Danone in India's dairy industry because Epigamia offers consumers products that add value to the plain yogurt they can make cheaply at home. But perhaps most importantly is this: while much of the population still make yogurt the old-fashioned way, analysts predict that a growing number of consumers will want to buy premade options as they move into corporate jobs in developing urban centers. Very large numbers indeed. 

       If only 5 percent of India's 1.35 billion people decide to buy prepackaged yogurt, that's over 67 million consumers — more than the entire population of Danone's native France.

How Amazon Makes Money? | News Cover

How Amazon Makes Money:

News Cover: Amazon reported record profits in 2018, earning $10.1 billion in net income compared to just $3 billion in 2017. Considering the company hardly had any annual profit until 2016, this represents major growth. 

        Whether that's gap earnings, operating income, free cash flow, this company hit an inflection point at the beginning of 2018. It's one of the reasons that the stock materially outperformed the market. 

        Traditionally, Amazon has funneled most of its money straight back into the company itself, leading to meager earnings compared to other tech giants like Apple or Google. But in spite of this strategy, Amazon has been making enough lately that there's still money left after all of its expenses on inventory, fulfillment centers, and people. 

        Amazon still doesn't have the types of profits that other big tech companies do, say a Google or an Apple or a Microsoft. But significantly more than they ever have in the past and it really allows them to do much more experimentation with the core business. 

         So what's changed? Though Amazon has long dominated the U.S. e-commerce market, online sales are not actually the biggest moneymaker for the company. Its e-commerce division isn't even profitable internationally. Instead, Amazon Web Services, or AWS, has generated the majority of the company's operating income since 2016. 

How amazon earn money?

AWS is Amazon's cloud computing division, comprised of a huge network of servers providing processing and storage solutions for companies, government agencies, and individuals. 

      What that did for Amazon is it turned Amazon into a technology company as well as being e-commerce and retailer. Its clients, which include Netflix, Airbnb, and Yelp, are charged for their volume of usage, the features they subscribe to, and the services they use. 

         AWS really started to grow about four or five years ago and became a significant force in computing. Amazon Web Services continues to get bigger as a percentage of overall revenue and it's a highly profitable business by Amazon's standards but by most corporate standards. It's doing something like 30 percent operating margins. 

       In 2018, AWS brought in 7.3 billion dollars in operating income and 25.7 billion dollars in revenue which, for reference, is more than both McDonald's and Macy's. In this last quarter, AWS was 58 percent of the total operating profit for Amazon. So it's still clearly the profit driver for the overall company. In fact, in 2017, AWS was actually more than 100 percent of Amazon's operating profit. So without AWS, Amazon would not have been making any money. 

     But though it's a huge reason behind Amazon's recent profitability, other areas of the company are seeing major growth as well. The fastest-growing division of Amazon is its other category, comprised mainly of its advertising business. It grew 95 percent in the fourth quarter of 2018 and brought in $10.1 billion in revenue for the year overall. 

         As Amazon has become the center of commerce for a lot of businesses, it's becoming a huge advertising play as well. They don't break out the profits of this, but looking at comps like Facebook and Google, it's almost certainly also in that 30 percent operating margin range. 

        If advertising continues to grow at this rate, some analysts even predict it will be more profitable than AWS by 2021. The last segment experiencing major growth is the third-party marketplace. While Amazon traditionally buys products in bulk from wholesalers and sells them at a slight markup, in the third-party marketplace outside companies pay Amazon to sell their goods using its platform. 

          Amazon takes about a 15 to 20 percent cut of the sales, while also collecting fees for things like storage and shipping. While Amazon generates significantly less revenue from third-party merchants than from products it sells, margins are much higher, making it more profitable than the traditional model. 

     If you assume even a small 5 percent margin, you're talking about potentially two billion dollars in profit just from third-party contributing to overall Amazon. 

          Today, more than half of all goods sold come from third-party sellers, and more and more businesses are signing up. Sales of third-party seller services rose 34 percent in 2018 to 42.7 billion dollars. 

           You really have to be on Amazon, unless you are going to go it alone. Amazon is the only place where you can instantly get scale without having to do all of the marketing yourself. 

        Amazon smart speakers also have analysts excited. The last thing I find really interesting is Alexa. So you now have an installed base of over 100 million of these voice-activated devices. Over time, you'll find yourself increasingly turning to Alexa, and say "Alexa, order more coffee." And it's one of those things that will accelerate the move of Amazon into two places, the pantry and into the refrigerator. 

    The boom in all these categories, from Alexa to cloud computing, advertising, and third-party seller divisions, raises the question of how the company should be valued. At the size of the company now, well over 200 billion dollars in annual revenue, it's just really hard to grow at 20 plus percent. So that means these investors who have expected high growth repeatedly every quarter are now looking at a company with slowing growth but lots of profitability. There's clearly some consternation in the investor community as to how to value Amazon today.  That is how How Amazon Makes Money.

is vodafone shutting down in india? News Cover

is Vodafone shutting down in India:

News Cover: In India, there are many telecom companies. Vodafone, Jio, Airtel, Aircel, Idea, etc are different telecom companies. Vodafone is one of the largest telecom companies in India. They have suffered a very big loss. 

        Vodafone may shut down in India. However, this is not confirmed. If Vodafone shuts down, services for people with the Vodafone SIM may stop or their mobile numbers will remain the same but the service may be transferred to other companies such as Jio, Idea, Airtel, Aircel, etc. 

       Their service may shut down as well. This year Vodafone has suffered major losses. Ever since Idea and Vodafone's merger, the price of their shares has been continuously declining. During the three month period from April to June 2019, Vodafone suffered a loss of Rs 4061.01 crore. Last year between April to June 2018, they suffered a loss of Rs 2,757.60 crore. Their losses have been continuously increasing. 

        Vodafone has not released any statement about if they will shut the company or not. There are rumours that Vodafone will pay back their loans. We will have to see whether Vodafone remains open or shuts down.

how to become a successful businessman | News Cover

News Cover: A few years ago, Mar Cuban was asked in an interview, "What do you think is the single most important reason why businesses fail?". His answer was simple, but most people don't get it. 

In today's article, I'm going to be sharing with you, the single most important thing you can ever do as an entrepreneur. If you don't do this, you can't build a successful business. What it means to be a lawyer When I was a boy, I lived in the same house with a woman whose husband happens to be a lawyer. Whenever this man came to visit, his books were usually some of the biggest loads he carried. 

I thought it is because he was a lawyer, but as I grew up, I noticed that every single individual who does well in their field always remains in the classroom in their career. Whether you're an accountant, an engineer or a policeman, if you want to remain relevant for long in your career, you have to continue to study as long as you live. But there's one profession which many never consider requiring a lot of studies, even though this profession requires more studies than all other professions in the world, that profession is entrepreneurship. 

Most people I know who want to be entrepreneurs are not studious. Yes, some of these people may study hard in schools but when it's time to start a business most people simply don't think that they have to study, study and study even more. I don't like to be the carrier of bad news but here is one; you can never become a successful entrepreneur if you don't learn every day. If you don't have a conscious learning habit, there's no way on earth you can be relevant in the ever-evolving world of business because by the time your competitors know more than you do, in any important areas their business relies on, you're gone. 

Later in this article, I'll share with you some important areas I think you should study. For now, let me bust a common myth. The myth about capital About eleven years ago when I told my elder brother that I wanted to become an entrepreneur, the question he asked me was what everyone will ask you today; "Where would you get capital?" Over the years, I've met so many people who claim that they wanted to build a business. Their number one excuse is always; I don't have capital. 

I think these people don't know what capital is and what the most important capital is, in any business. Listen to this: by far, the most important capital you ever need is what I call knowledge capital. With knowledge capital, finance and every other thing you need to build a business will automatically follow. 

Whenever I say something like this, I know someone watching this article is likely to think that I'm a motivational speaker but I'm not. I was born in one of the poorest parts of the world and my parents only could struggle to feed us whichever food, just for us to remain alive. But from such a situation, I decided to build a company and I did it. Yes, nobody in my entire family ever gave me ordinary $200 for business, but I understood early in life that with knowledge, I could get anything else I wanted out of life. Napoleon Hill said, "Capital is too much in the world for those who know how to get it." Knowledge is the key that shows you how to get it. You need to learn every day of your life, study business, negotiation, human psychology, human relationship, and leadership. 

When you read biographies of great entrepreneurs and learn from them, how they built great companies, what happens is that you naturally know about business than most people in the world. When you know about any subject than most people in the world and you're willing to act, you naturally attract the attention of the people who have resources. It's very simple. You cannot become a successful entrepreneur if you don't wake up every day to learn. Scientists do it all the time. Think about yourself as a scientist who works hard to find a cure for HIV, cancer or any deadly disease. You sleep in the libraries and laboratories for two years and one day, you announce to the public that you've discovered the cure for all cancers but you don't have any money to produce the drug. What do you think will happen? Well, you'll get more money than you can ever use because everyone knows that you're about to change the world. 

A similar thing happens to entrepreneurs. I've raised capital again and again. I've got more than what I needed, simply by studying, knowing and acting. If you don't believe me, I recommend that you watch ‘Shark Tank’, a show that entrepreneurs use to get capital from investors. If you watch Shark Tank, you'll notice how some entrepreneurs can get far more than they ask for, even though most people get nothing. Those people who get more than they ask for are those who know what others don't. You cannot become a successful entrepreneur if you don't wake up every day to learn. 

The woe of business Whenever you ask people to take time for reading or learning, their usual excuse is, "I'm busy." If you've spent enough time on this planet as I do, you'll know that "I'm busy" is what people say for things that are not important. Whenever you think you're busy to do anything, it's simply because you don't think such a thing is very important. As we wrote this article, an average human being wastes more than 7 hours every day. Some waste such hours on TV, some waste such hours on social media, gossip or even computer games. These same people who waste so much time on little things will claim that they cannot read or study because they are too busy. 

What if your life depends on knowledge? What if knowledge is the oxygen that fuels your existence? But that's the truth. Knowledge is the oxygen that fuels your existence. You can remain alive for 100 years even if you don't know anything about anything but you cannot live a meaningful life as an entrepreneur if you don't wake up every day to learn Why Cuban thinks that ignorance kills businesses At the beginning of this article, I told you what Mark Cuban said in an interview when he was asked what he thought was the single most important reason why businesses fail. 

Cuban says that it's because of the lack of knowledge and why is this important? In that same article, Mark Cuban uses a simple analogy. The reason why you have to be studious, as an entrepreneur is because, if anyone knows what you don't know about your product, your market, or new technology, such a person can send you away from the market. 

If any of your competitors know more about human psychology than you do, if any of your competitors know more about branding, marketing or negotiation more than you do, if any of your competitors know how to attract quality people to work with him more than you do, you may be kicked out of the market very soon. You cannot become a successful entrepreneur if you don't wake up every day to learn. Thank You...!