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
Basic Concepts of Stock Analysis
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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
Analyzing operating performance of any company is a critical step before taking any investment related decision about any company. It tells an investor whether any company is improving its operating efficiency year on year and should be a potential investment candidate or on the contrary, its performance is deteriorating with time and any investment in
Many times, we come across companies, which show promising signs of becoming good investment opportunities. We may find such companies while interacting with friends, watching television, reading magazines, vacationing, shopping or screening stocks online. We get interested and start searching about these companies on the internet. We visit their websites, glimpse through their financials and
Investing in low price to earnings ratio (PE ratio) stocks has been around for about a century now. Its most ardent proponent, Benjamin Graham, has been one the best stock investors of all times. He introduced low PE ratio as one of the founding principles of value investing school. Graham’s major focus was to find
Recently, I received a request from one of my friends to review his portfolio. I was surprised to notice that most of his stocks were in losses, despite markets (Sensex) having risen about 30% in last one year. A casual chat revealed that he had invested in those stocks over last 2-3 years after listening
Recently, we learned about selecting good stocks to buy for the portfolio in the article Selecting Top Stocks to Buy: A Step-by-Step Process of Finding Multibagger Stocks. The current article focuses on the the best ways of monitoring stocks in the portfolio along with answers to important queries of investors about monitoring stocks. We learned that an
Recently, I read a post about “How Not to Invest” on Stocktwits.com. The post showed the trading journal of an investor in the form of a chart highlighting the mistakes, which an investor can make if she does not have the discipline and a plan of action. The following chart represents the trading diary.
“Selecting Top Stocks to Buy” is a series of articles written by us in which we have touched upon various steps required to be taken before an investor decides about investing in stock of any company. The series contains a few articles, each dealing with different aspect of stock selection ranging from attributes of a
"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
- Getting the right perspective for stock investing
- Stock investing is an entrepreneurship
- How to choose the right approach for stock investing
- Why I left technical analysis and never returned to it
- Trading diary of value investor (Read my investing diary)
- Are Your Stocks Losing Money While The Market Is Going Up
- Common Mistakes done by Investors and How to Avoid Them
- 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