On April 16, 2016, I got the opportunity to address a group of investors in an event “Investor Club” organised by MoneyLife Smart Savers, courtesy Mrs Sucheta Dalal, Managing Editor of Moneylife and Mr Debashis Basu, Editor of Moneylife. The session focused on the assessment of management quality while buying stocks. Read: Finding Stocks that
Basic Concepts of Stock Analysis
Ecomonic Times covered our Investing Journey:
Must Read Article to Learn Stock Investing:How to Find Multibagger Stocks: A Step by Step Guide
On April 16, 2016, I got the opportunity to address a group of investors in an event “Investor Club” organized by MoneyLife Smart Savers, courtesy Mrs. Sucheta Dalal, Managing Editor of Moneylife and Mr. Debashis Basu, Editor of Moneylife. The session focused on the assessment of management quality while buying stocks. Read: Finding Stocks that
Buying a good stock at a cheap price, is one of the key pillars for making wealth in the stock markets. If an investor pays too much for the stock, then she may not make any money despite sustained good performance of the company whereas if she get a stock a deep bargain then even
Every investor, be it in any stock market across the world, would have come across many stocks, which trade on sky high price to earning (PE) ratios. These PE ratios sometimes cross all reasonable levels of valuation logic; sometimes even crossing levels of 100! I have been repeatedly asked by many investors whether they should
The current article explains all the aspects of Margin of Safety in stock investing including its meaning, calculations and the tools to be used. The article also clarifies some of the common queries of investors related to margin of safety. We all have faced situations in life where our decisions have gone wrong. Be it
The current article focuses on the key signs of financial shenanigans / accounting gimmicks, which can help investors identify the accounting red flags in the companies they are considering for investment. We all know about one company or the other, which had resorted to accounting gimmicks to dupe investors. Instances of management manipulating the books
The current article focuses on the importance of credit rating reports for stock investors. The article covers the example of one company to highlights the reasons why we believe that credit rating reports put investors at an advantage in their analysis. The article also contains clarifications on credit rating reports sought by readers like: How
Self Sustainable Growth Rate (SSGR) is the rate of growth, which a company can achieve from its profits without relying on additional sources like debt or equity dilution. SSGR estimation has occupied an important part of my stock analysis as it indicates the strength of the business model of a company. A company with high
One of the common questions that every stock investor faces is “ How many stocks to own in the portfolio?” How many stocks are too few and how many stocks become too many? Too few stocks expose the investor to high risk that under-performance by a single stock would significantly bring down the value of
For making wealth in stock markets, knowing when to sell stocks is equally important as knowing when to buy stocks. The investor should not end up selling those stocks early, which go on to make millions for their shareholders. At the same time, the investor should not keep on holding a stock even when it
"Peaceful Investing": My Stock Investing Approach
“Peaceful Investing” approach is the result of my more than a decade of experience in equity markets. This approach helped me invest even when I had a full-time corporate job and could not spare a lot of time for stock analysis. During my investing journey, I have faced all the common challenges of the investors, the biggest one being “scarcity of time”. “Peaceful Investing” approach keeps in mind that an investor will have limited amount of time to spare for stock investing.
The objective of “Peaceful Investing” approach is the selection of such stocks, where once an investor has put in her money, then she may sleep peacefully. Therefore, if later on, the stock prices rise, then the investor is happy as she is now wealthier. On the contrary, if the stock prices fall, even then the investor is happy as she can now buy more quantity of the selected fundamentally good stocks.
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1. Getting Ready for Starting Stock Investing
– Why management analysis is the most important in stock investing?
– Learn simple steps to analyse management quality of any company
– How to understand warrants issued to promoters
– How to interpret pledging of shares by promoters
– How to interpret share buybacks by companies
– How to contact companies for clarifications/additional information