10 STEPS TO BECOME A BETTER INVESTOR (PART II)

Continued from 10 STEPS TO BECOME A BETTER INVESTOR (PART I)

6. Don’t try to time the market: Many investors try to buy at the lowest point and expect to sell it at the top most price available.
Not even Warren Buffett has been ever able to time the market perfectly with 100% accuracy.

Instead of trying to time the market, what Buffett suggests investors to follow is the valuations of the stocks. Valuations never lie. You should invest in companies which have cheap or reasonable valuations and try to sell it when you feel its valuations are high. Great indicators of valuations are Price-to-Earnings and Price-to-Book Value.

7. 52 Week High & Low: It is very common for investors to invest in stocks which have Continue Reading

10 STEPS TO BECOME A BETTER INVESTOR (PART I)

Our Research Team has noted down few tips which can help you to become a better investor. We would love to share some of them with you as we are sure it will definitely help you to improve your investing style which will result in more profits with reduced risk.

1. Keep it simple: Keeping it simple in investing is not easy. In fact many who enter in this field with the thought process that it is an extremely difficult world and will have a difficult time making investing choices. But on the contrary, stock market is a very simple machine which just needs right inputs which will give desired output.

Just invest in companies whose business you understand and have interest in. Don’t try a Continue Reading

PRICE-TO-BOOK VALUE RATIO (P/Bv)

Every value investor makes his investment decisions after completely and thoroughly researching the companies he wants to invest in. Evaluation of few basic but important ratios is an important part of his research process and thus, every value investor should know the basic ratios. Earlier we covered Price-to-Earnings Ratio (P/E). If you have missed it, you can CLICK HERE to read it.

In this article we will cover another ratio which is called Price-to-Book Value ratio (P/Bv). But before we get to the ratio, we need to know what exactly Book Value of a company is.

Book Value: It is the total value of the company’s assets that shareholders would theoretical Continue Reading

7 THINGS TO CHECK BEFORE YOU BUY A STOCK

#1 What is the company about and what is it’s background

 

Before even thinking about the financials, investors or the promoters of the company, it is extremely crucial to understand the business in which you wish to invest. Warren Buffett in the early 2000s, when the world was enthused about the IT boom, was not interested in that sector, why? Because he did not understand the businesses of the companies from the IT sector and look what benefit he got from his decision in 2008 crash? So it is extremely important to understand every big and small detail of the business you plan to invest in and find out if you are comfortable with their products, business model and sector they o Continue Reading

9 THINGS TO KNOW IF YOU ARE A FIRST TIME INVESTOR

If you have decided to start investing in the stock market on your own, then this article is for you. The Indian stock market is said to be the next mega Bull Run theme and you want to try your hand at picking stocks. Peter Lynch, the legendary stock investor, said, ‘Everyone has the brainpower to follow the stock market. If you made it through fifth-grade math, you can do it.’ However, there are a few things you must know before you dive into the universe of stock market. You can save yourself a lot of time, effort and money if you follow the advice in this article. Continue Reading

Nilesh Shah, Managing Director of Kotak Mahindra AMC and shares his views on why it is the best time to invest now

The year 2016 did not start on a positive note as the Sensex has been taking a beating from last couple of trading sessions. It has touched a 52-week low. In this uncertain times, majority of retail investors are worried whether investing in equity markets is still safe or not.

Maybe a positive word from one of India’s top market expert and the MD of Kotak Mahindra AMC can cheer up the investors who have lost hope in Indian growth story.

Mentioned below is the extract of the interview.

Q: At this point of time, how should an equity investor be playing it? Continue Reading

4 THINGS TO KNOW ABOUT IPO INVESTING

The market is buzzing with IPOs these days. This can be seen not just in the number of stocks rising in Sensex or Nifty, but also the IPO or Initial Public Offering announcements. So far, we have seen couple of IPO launches in 2015, for example Inox Wind, VRL Logistics, Adlabs Ent., InterGlobe Aviation Ltd. and Coffee Day. The primary market, where new shares are offered to investors is expected to see few more issues this year. Continue Reading

5 THINGS TO CHECK IN QUARTERLY RESULTS OF BANKS

The banking system is one of the most important parts of the economy. Banks perform two key functions – accepting money as deposit for safe-keeping and lending to individuals as well as government bodies. Major corporate companies also borrow from banks to fund their projects, keeping the economy running. This shows the sheer power the banking system.

This is why banks can act as an important indicator of the state of the economy. Every three months, banks report their financial performance. In October, most of the banks have announced their quarterly results. So we share with you 5 things to check in their results. Continue Reading