I should understand the business of the company easily. I should understand the financials of the company easily. The stocks Revenue or Profit should be stable and growing so that it helps me to value it easily. The stock should not have a lot of debt. I will only invest in a company after completely reading its financial statements, determining
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An inch wide and a mile deep
This is the punchline which Phil Town a famous investor often uses. Now, what does it mean? It means that we will succeed in any investment operation if we go deep and understand each and every aspect of the business. We have to understand that when we are buying shares, we are actually buying businesses. And in order to make
Continue readingWant to earn Free Money? Here is How
That is one hell of a scammy title!! That is also how I felt after stumbling upon this video: But being open minded I clicked and watched it. Also, Having read Peter Lynch’s book I knew that buybacks were a good thing and companies who do this must be prospering. So, I immediately got interested. I found that there are two categories
Continue readingTop 10 Things to look for in a Mutual Fund before buying
1. Type: Mutual funds are mainly two types. Equity Mutual funds that invest in share market. Debt Mutual funds that invest in Debt instruments (like Corporate and Govt. Bonds, Treasury Bills, Commercial Papers, Certificate of Deposits). Then there are funds with any combination of the above two called Hybrid or Balanced funds that invests partly in Share Market and partly
Continue readingBuffett Books by Preston Pysh Video 2
In this video, Preston says at 11:30 mark to pause the video and evaluate how much money you are willing to pay for this ice cream business: I will look at following points to estimate what price am I willing to pay for the ice cream business: # First of all, I will look what return am I getting risk-free. The
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