Can We Predict Our Stock Earnings Accurately?

Hi Investors, One of the least quantitative aspects of investing is deciding how company management will affect the price of a stock purchase. Recognizing that qualitative measures may be the best we have to work with, is there a list we should look at? A possible list is given below. Does the stock price gyrate wildly over time? Have sales/revenues increased over time? Have earnings per share increased over time? …

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How To Find Good Stocks Using PESTLE

Hi Friends, In my last post, I shared a framework by Michael Porter – 5 Forces and how we may use it to analyze the business environment. These qualitative analysis methods have been the more difficult part of investing and using business frameworks does help us look at it in a systematic manner. This week, I would like to continue the conversation and share another model that I learnt in …

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Using Porter’s Five Forces to Analyse the Business Environment

Hi Friends, In analyzing a business, the quantitative portion is much simpler than the qualitative portion as it is much more subjective. A way to help guide us in understanding a business is to use business frameworks. Today, I would like to share one of these frameworks that is taught in Business School which I feel could help us. #1: Porter’s Five Forces Porter’s Five Forces of Competitive Position Analysis …

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Stock Market Strategies Part 2

Hi friends, This is part 2 of the series on the “4 Market Strategies”. You can read the first post here 4 Market Strategies Part 1 This 2nd part, we will be talking about the 2nd strategy: Dividends! “#2: Income Focused Dividends are the focus for this strategy. Again, dividends are cash distributed to shareholders by the company. Personally, I received dividends every quarterly from the companies of which I …

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Stock Market Strategies Part 1

Hi friends, “Being known as a fundamental investor and associated with investing the Warren Buffett way, many friends would immediately jump to the conclusion that all I do is to Buy and Hold, loooong term. I would like to clarify that there is difference between analysis and strategies. Value Investing or Fundamental Analysis is an analysis method. We study a stock from a perspective of studying a business, asking questions …

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Philip Fisher’s 15 Steps To Look for in a Common Stock – Part 1 of 3

Hi Investors , We would like to share it with you Philip Fisher’s , The Investment Secrets in Common Stocks and Uncommon Profits ,fifteen things that a successful investor should look for in his or her common stock investments. About Philip Fisher ( 1907- 2004) Greatest investments minds in history Developed a buy-and-hold value and growth model for investments Wrote several books one of which is watershed Common Stocks and Uncommon …

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VALUE INVESTING & THE BLACK SWAN

Hi Friends Once in a while, we would have queries about investment related queries, etc. and there were 2 queries which are as follows: 1. How can value investing protect one in a black swan? 2. How can value investing help one profit in a black swan? As I find the queries an interesting one, I have decided to write a post about it. From the question itself, don’t take …

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Use “MARGIN OF SAFETY” not “MARGIN”!

Dear friends, You may or may not be familiar with this term, “Margin of Safety”. The idea is that in investments, there is no guaranteed returns of precise calculation of valuation. Thus, we always need to be prudent and be conservative. Now, I may linking this to the using of Margin or Leverage because I have heard from friends who have picked up an investment skill or two and started …

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When to Sell Your Stocks?

Dear Friends, Here is another million dollar question for stock investors – when do we sell a stock? Well, lets again take some reference from one of the greatest investor in the world – Warren Buffett. In 1988, he wrote this in his letters to his shareholders, “our favorite holding period is forever” Erm…. Does that mean we should NEVER SELL? Well, think about it this way, if we manage to find a …

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A Checklist on How to Read Annual Reports

Dear fellow investors, Do you know what is Warren Buffett’s first “Value Stock” after he learnt how to invest from his teacher, Benjamin Graham? It was this stock called GEICO which he invested in 1951. The interesting thing was that he took a train ride that is probably about 10 hours 2 ways to travel to GEICO HQ to learn and understand about this company and its business. The side …

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