Investing Advice

There is the value investing approach and the trading approach. I prefer the value investing approach

because you don’t need to monitor the stock movements all the time. You are also safe no matter where the

market goes. It does not matter whether the market goes up or down, you will make money either way.

The value investing approach requires you to determine the “intrinsic value” of the business and then

just compare it with the existing market price. If it is higher than market price then buy it. If it is lower than the market price then don’t buy it. Simple as that. Buy it when it is cheap, avoid it when it gets more expensive than what you

calculated it to be. The hard part is that it requires you to analyze the financial statements of the company in order to gauge future performance. The information is also combined with the current economic trends plus any potential future opportunities or threats for the company’s profitability. I will detail the specific analysis of individual companies in other posts.

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One Response to “Investing Advice”

  1. Srinivas Rao Says:

    The concept of value investing has encouraged me to start a portal of value investing on the Indian stock markets. I am doing analysis of Low PE, High dividend yields, Low PB and Low PB with high returns. I would love to share anything which is common. I really appreciate the effort you have put in your blog.

    You can visit the site at : http://equityschool.in


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