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(26-1-2015 LiveBombayStockExchange investing tutorial series) - Every person in this world has a role model, which he wants to replicate, copy, follow diligently. A role model is someone which is the target personality one wants to become in his life. People working in different industries, be it IT, Entertainment, Media have their respected role models who are
Showing posts with label stock investment tips. Show all posts
Showing posts with label stock investment tips. Show all posts
Sunday, January 25, 2015
Sunday, June 23, 2013
Stock Investments are always long-term option
Greetings from StockInvestingTips, your one stop website for daily updates for Indian stock indices.
Incase of long term investors there might be minuscule people who have lost money through stock markets. If they have made their investment after a long analysis of the target company. I am not talking about impulsive buying or buying done on basis of word of mouth or by listening to 'blah, blah' of certain 24*7 hrs investment TV channels.
This means stock market investing are always a long term bet where the returns might surpass average returns from bank FD's etc. However there is always risk involved in here, which can infact be minimised if investment is done after thorough analysis of the company by checking it's last 3 years balance sheets, management quality etc.
I'll give a example, If during last couple of years any share analyst put a buy on kingfisher airlines stock then the reason for putting 'buy' can be that he is paid by the company for bringing fresh money, or his analysis/mental power is worst then a retarded human being because the company 'Kingfisher Airlines have never come into profit since inception because of following two basic reasons:
1. Management quality is poor, with no analysis/mental ability present to run businesses. 2. Airlines company is very hard to get into profit in India, due to heavy taxation.
So it comes out to be again to this oneliner: 'stock investments are longterm bets after thorough analysis of dna of company to invest into'
Always invest for longterm in stock markets, for eg a person who invested in Reliance Industries in August 2002, His investment is up by over 5 times in 2013(yesterday's price), Such returns easily surpasses the returns from conventional investment options like bank FD's or govt bonds). On the downside, since the returns on stock investments are not guaranteed, you risk losing everything on any given investment. eg. If during early 2000's anyone invested in IT companies, he would have lost all his money after the dotcom bubble burst, when many companies went bankrupt.
Investing for long-term in single stocks is a risky affair, like we say if you put all of your eggs in a single basket, sometimes that basket may fail, breaking all the eggs. Other times, that basket will hold the equivalent of a winning lottery ticket. So it is better to diversify your portfolio(Even for a long-term perspactive). This diversification would also help in avoiding volatility of stock markets.
Still in 10 year plus time category of investments, stock markets returns are on top. Even if you had invested in stocks at the highest peak in the market, your total after-inflation returns after 10 years would have been higher for stocks than either bonds or bank FD's. This is because stocks allow investors to own companies that have the ability to create enormous economic value. Stock investors have full exposure to this rise in stock value, which no other longterm investment can match.
HAPPY TRADING!
Incase of long term investors there might be minuscule people who have lost money through stock markets. If they have made their investment after a long analysis of the target company. I am not talking about impulsive buying or buying done on basis of word of mouth or by listening to 'blah, blah' of certain 24*7 hrs investment TV channels.
This means stock market investing are always a long term bet where the returns might surpass average returns from bank FD's etc. However there is always risk involved in here, which can infact be minimised if investment is done after thorough analysis of the company by checking it's last 3 years balance sheets, management quality etc.
I'll give a example, If during last couple of years any share analyst put a buy on kingfisher airlines stock then the reason for putting 'buy' can be that he is paid by the company for bringing fresh money, or his analysis/mental power is worst then a retarded human being because the company 'Kingfisher Airlines have never come into profit since inception because of following two basic reasons:
1. Management quality is poor, with no analysis/mental ability present to run businesses. 2. Airlines company is very hard to get into profit in India, due to heavy taxation.
So it comes out to be again to this oneliner: 'stock investments are longterm bets after thorough analysis of dna of company to invest into'
Always invest for longterm in stock markets, for eg a person who invested in Reliance Industries in August 2002, His investment is up by over 5 times in 2013(yesterday's price), Such returns easily surpasses the returns from conventional investment options like bank FD's or govt bonds). On the downside, since the returns on stock investments are not guaranteed, you risk losing everything on any given investment. eg. If during early 2000's anyone invested in IT companies, he would have lost all his money after the dotcom bubble burst, when many companies went bankrupt.
Investing for long-term in single stocks is a risky affair, like we say if you put all of your eggs in a single basket, sometimes that basket may fail, breaking all the eggs. Other times, that basket will hold the equivalent of a winning lottery ticket. So it is better to diversify your portfolio(Even for a long-term perspactive). This diversification would also help in avoiding volatility of stock markets.
Still in 10 year plus time category of investments, stock markets returns are on top. Even if you had invested in stocks at the highest peak in the market, your total after-inflation returns after 10 years would have been higher for stocks than either bonds or bank FD's. This is because stocks allow investors to own companies that have the ability to create enormous economic value. Stock investors have full exposure to this rise in stock value, which no other longterm investment can match.
HAPPY TRADING!
Sunday, May 5, 2013
20 must-follow Stock Investing tips for newbies
Greetings from LiveBombayStockExchange, your one stop website for Stock market tips and reports.
Stock market investment is seen as a very difficult frontier to capture by newbies who doesnot understand Stock markets and how they function ie. people who lag basic knowlegde, understanding of stock markets. However investing in stock markets or any other form of putting in your money is not a very difficult art to understand. In this post I would go-through 20 best investment tips ahich a newbie should know before investing in Stocks.
20 best investment tips for newbies
1. It's a long-term game: Those who deal with intraday trading have meager chances of making big time money, billionaires like Warren Buffett have been made from investing and holding stock over their lifetime
2. Hate Complexity in investment: Keep your investments simple and logically correct. Those who trade too often, focus on irrelevant data points, or try to predict the unpredictable are likely to encounter some unpleasant surprises when investing. By keeping it simple--focusing on companies with economic moats, requiring a margin of safety when buying, and investing with a long-term horizon--you can greatly enhance your odds of success.
3. Overnight riches are fictional: One can never become rich overnight by investing in stocks, thinking about same is sheer wastage of time and money and mind too!!
4. Turn off your TV: Now a days lots of paid business channels run by intraday trading brokers misguides newbies with their stock options, mind your brain instead as last year top Indian investor Rakesh jhunjhunwala have lost money in midcaps whereas the index has gained in the same period, DONT FOLLOW PAID MEDIA BLINDLESSLY
5. You are owner of stock:Dont think simply as a investor in company but rather think as a owner of the company, this strategy would help while choosing the stock to invest in because as an owner you would never speculate and would invest only in companies with strong basics and bottomline.
6. Sell Higher:Always sell your investment at higher price then purchase price. When stocks have fallen, they are low, and that is generally the time to buy. Similarly, when they have skyrocketed, they are high, and that is generally the time to sell. Don't let fear (when stocks have fallen) or greed (when stocks have risen) take over your decision making.
7. Past stock trends continue: In stock market investments one should always remember that past stock trends always continue and if the stock has fallen miserably in past and risen then it would definitely repeat the same in future thus donot panic if the investment is going down daily.
8. Invest in good managed company: Management of a company should be good and one should consider the management profile/qualities while investing as they are the ones who are responsible for increasing market cap of a company. DONOT INVEST YOUR MONEY IN BADLY MANAGED COMPANY
9. Economy is the king:Always remember that economy is the king as good management might feel helpless when countries economy is on a decline.
10. Watch when you buy: Stocks are priced and eventually weighed on the estimated value of future cash flows businesses will produce. Focus on this. If you focus on what you paid for a stock, you are focused on an irrelevant data point from the past. Be careful where you place your money.
11. Omit word 'stubborn' from you: Stock market investment is all about patience and there is no room for stubborns in it. One should follow the company and not the stock price of it. If a stock you recently bought has fallen, but nothing has changed with the company, patience will likely pay off. However, if you find yourself constantly discounting bad news or downplaying the importance of deteriorating financials, you might be crossing that fine line into stubborn territory. Being stubborn in investing can be expensive.
12. Give room to surprises:The first big positive surprise from a company is unlikely to be the last. and so is a negative surprise, so dont get too much bothered about such surprises.
13. Gut feeling answers it all: Any valuation model you may create for a company is only as good as the assumptions about the future that are put into it. So your gut feeling about a company is must while making an investment
14. Know the management correctly: Always know about mutual funds own the company, and what is the record of those fund managers, If they have a bad past history then surely your investment is at loosing side.
15. Stocks move faster then you normally do: Most deteriorating businesses will do so faster than you anticipate. Be very wary of value traps, or companies that look cheap but are generating little or no economic value. On the other hand, strong businesses with solid competitive advantages will often exceed your expectations. Have a very wide margin of safety with a troubled business, but do not be afraid to have a much smaller margin of safety for a wonderful business with a shareholder-friendly management team.
16. Maintain safety margin:Always invest in stock market with your surplus money, never invest more then you can sustain as that would adversely affect in bad times. follow the hindi proverb "Chadr dekhkar paer pasarna"
17. Think on your own: Always remember that in stock market one has to be his own stock analyst and should never follow any stock guru blindly because these guru's are the ones who make the biggest investment mistakes.
18. Buy value stocks: The shopping idea of "value for money buying" is also applicable in stock market investing, never purchase a overpriced stock and never let go a undervalued stock
19. Avoid speculations: A newbie should never purchase stock by just following the mob as in majority of such cases the downturn of these stocks arrive shortly
20. Buy Quality stocks: One should always buy quality stocks, Qualtiy stocks are the one which have good management, good bottomline, evergreen sector etc
Stock market investment is seen as a very difficult frontier to capture by newbies who doesnot understand Stock markets and how they function ie. people who lag basic knowlegde, understanding of stock markets. However investing in stock markets or any other form of putting in your money is not a very difficult art to understand. In this post I would go-through 20 best investment tips ahich a newbie should know before investing in Stocks.
20 best investment tips for newbies
1. It's a long-term game: Those who deal with intraday trading have meager chances of making big time money, billionaires like Warren Buffett have been made from investing and holding stock over their lifetime
2. Hate Complexity in investment: Keep your investments simple and logically correct. Those who trade too often, focus on irrelevant data points, or try to predict the unpredictable are likely to encounter some unpleasant surprises when investing. By keeping it simple--focusing on companies with economic moats, requiring a margin of safety when buying, and investing with a long-term horizon--you can greatly enhance your odds of success.
3. Overnight riches are fictional: One can never become rich overnight by investing in stocks, thinking about same is sheer wastage of time and money and mind too!!
4. Turn off your TV: Now a days lots of paid business channels run by intraday trading brokers misguides newbies with their stock options, mind your brain instead as last year top Indian investor Rakesh jhunjhunwala have lost money in midcaps whereas the index has gained in the same period, DONT FOLLOW PAID MEDIA BLINDLESSLY
5. You are owner of stock:Dont think simply as a investor in company but rather think as a owner of the company, this strategy would help while choosing the stock to invest in because as an owner you would never speculate and would invest only in companies with strong basics and bottomline.
6. Sell Higher:Always sell your investment at higher price then purchase price. When stocks have fallen, they are low, and that is generally the time to buy. Similarly, when they have skyrocketed, they are high, and that is generally the time to sell. Don't let fear (when stocks have fallen) or greed (when stocks have risen) take over your decision making.
7. Past stock trends continue: In stock market investments one should always remember that past stock trends always continue and if the stock has fallen miserably in past and risen then it would definitely repeat the same in future thus donot panic if the investment is going down daily.
8. Invest in good managed company: Management of a company should be good and one should consider the management profile/qualities while investing as they are the ones who are responsible for increasing market cap of a company. DONOT INVEST YOUR MONEY IN BADLY MANAGED COMPANY
9. Economy is the king:Always remember that economy is the king as good management might feel helpless when countries economy is on a decline.
10. Watch when you buy: Stocks are priced and eventually weighed on the estimated value of future cash flows businesses will produce. Focus on this. If you focus on what you paid for a stock, you are focused on an irrelevant data point from the past. Be careful where you place your money.
11. Omit word 'stubborn' from you: Stock market investment is all about patience and there is no room for stubborns in it. One should follow the company and not the stock price of it. If a stock you recently bought has fallen, but nothing has changed with the company, patience will likely pay off. However, if you find yourself constantly discounting bad news or downplaying the importance of deteriorating financials, you might be crossing that fine line into stubborn territory. Being stubborn in investing can be expensive.
12. Give room to surprises:The first big positive surprise from a company is unlikely to be the last. and so is a negative surprise, so dont get too much bothered about such surprises.
13. Gut feeling answers it all: Any valuation model you may create for a company is only as good as the assumptions about the future that are put into it. So your gut feeling about a company is must while making an investment
14. Know the management correctly: Always know about mutual funds own the company, and what is the record of those fund managers, If they have a bad past history then surely your investment is at loosing side.
15. Stocks move faster then you normally do: Most deteriorating businesses will do so faster than you anticipate. Be very wary of value traps, or companies that look cheap but are generating little or no economic value. On the other hand, strong businesses with solid competitive advantages will often exceed your expectations. Have a very wide margin of safety with a troubled business, but do not be afraid to have a much smaller margin of safety for a wonderful business with a shareholder-friendly management team.
16. Maintain safety margin:Always invest in stock market with your surplus money, never invest more then you can sustain as that would adversely affect in bad times. follow the hindi proverb "Chadr dekhkar paer pasarna"
17. Think on your own: Always remember that in stock market one has to be his own stock analyst and should never follow any stock guru blindly because these guru's are the ones who make the biggest investment mistakes.
18. Buy value stocks: The shopping idea of "value for money buying" is also applicable in stock market investing, never purchase a overpriced stock and never let go a undervalued stock
19. Avoid speculations: A newbie should never purchase stock by just following the mob as in majority of such cases the downturn of these stocks arrive shortly
20. Buy Quality stocks: One should always buy quality stocks, Qualtiy stocks are the one which have good management, good bottomline, evergreen sector etc
Tuesday, December 20, 2011
Invest in Warren Buffett Way in stock market
Legendary Investor Warren Buffett has a very simplistic approach for investing in stocks, In this post I would expalin the Warren Buffett way of investing in details, If one has to become a very good investor he should stick to these 4 step approach for choosing stocks and then becoming millionaire from it. We all know that Warren Buffett has made a fortune of 56 billion from stocks and share market investing. We are seeing Buffett type investments being done by some big indian investors already. So definitely this Warren Buffett way of investing would be helpful to potential investors and new investors who want to make a career in stock investing. Remember that one doesnot have to follow thick investment banks manuals because as Buffett says "there is nothing scientific about valuing a stock".
The whole Warren Buffett way of investing would be covered in four posts where each post represents one step for investing in Stock markets. Remember these steps are for pure investors and speculators or short term investors please excuse.
These four steps are:
Step 1 : Turn off stock market
Step 2 : Don't worry about the economy
Step 3 : Buy a business, not a stock
Step 4 : manage a portfolio of businesses
Follow these steps one after another and dont skip any step while purchasing a business. If the company fits well after all these steps then go ahead and buy that business. HAPPY INVESTING!
The whole Warren Buffett way of investing would be covered in four posts where each post represents one step for investing in Stock markets. Remember these steps are for pure investors and speculators or short term investors please excuse.
These four steps are:
Step 1 : Turn off stock market
Step 2 : Don't worry about the economy
Step 3 : Buy a business, not a stock
Step 4 : manage a portfolio of businesses
Follow these steps one after another and dont skip any step while purchasing a business. If the company fits well after all these steps then go ahead and buy that business. HAPPY INVESTING!
Thursday, September 8, 2011
Stock Tips for Indian Stock markets
With major world stock markets reeling under various uncertainities like Us Economy downgrade, Euro debt crises and riots. It becomes very difficult to decide the stock in which one wants to invests money, currently gold is favourite for investments but we know nothing can replace stocks as best investment option.
Indian stock indices like Bombay Stock Exchange's SENSEX and National Stock Exchange's NIFTY are very volatile currently hence for a investor(whether he is beginner or experienced in stock trading) the basic principal is to stick to the basics of stock market investing. Here I have compiled together my very best posts which guides the potential investor while investing in Indian markets. Just understand these basic principlesof stock market investing and I am sure that you would minimise the probability of makiing a loss in your investment.
Doing Online trading
49 must follow Stock Investing tips
Making a profitable Investment
Stock Markets investing tips
Short Selling explained
Choosing a Stock broker
Best Books to follow
Online trading techniques for beginners
10 Evergreen Investing tips
Best Investing Strategies
Dont's of Share markets
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