Posts Tagged: value investing

Investing

Top 10 Investment Books Every Investor Should Read

Mastering an art requires perseverance and continuous efforts. Stock investing is just another art, which holds true to this phenomenon.

Investing

What is Discounted Cash Flow?

Imagine the scenario where you decide to invest a specific portion of your pocket money say Rs1000 into stocks. Well, how would you select the appropriate stock? Will you blindly follow the advice given by your friends and family, or would you, as an intelligent investor, do a cost-benefit analysis?

Investing

Mohnish Pabrai- The Indian Value Investor

"Heads I win, Tails I don't lose much." Intrigued by this beautiful quote which reveals an excellent style to invest?

Investing

Rakesh Jhunjhunwala- The Phoenix of the Stock Market

“Markets are like women - always commanding, mysterious, unpredictable and volatile.” says a man who is truly inspirational, a billionaire and has given a twist to the Indian perception of stock markets.

Investing

Why is long term investment is important?

How long can you focus on something? It was a revelation when a study in 2018 stated that an average human has an attention span of just 8 seconds. If it seems to you that these attention spans do not matter, then you're wrong because it has significant implications on your daily activities and decision making.

Investing

What is Benjamin Graham’s Model of Asset Valuation?

Outside of Warren Buffet, no other investor is as well-known as his mentor Benjamin Graham.

Investing

The Enterprise Value for an investor

What is Enterprise Value? Enterprise Value (EV) is simply the total price that you need to pay to acquire 100% of any company. EV is also known as the Total Enterprise Value (EV) or Firm Value (FV).

Investing

5 components of Balance Sheet that influences Investment Decisions

People in current markets are inclined towards making profits and increasing their earnings. They want to invest in sectors and companies that are at their booming phase and would probably provide them with the highest returns. But how are their investment decisions made by their individuals? On what grounds do they decide whether they should invest in one particular company or another? These decisions are made by referring to the financial statements of the company and studying their growth pattern over the years. Financial statements such as Balance Sheet, Profit, and Loss accounts, Cash Flow Statements, etc. reflect the position of the company in terms of profitability and liquidity. It tells us where the company has made its investments and how much reserves it has created by now and how much money does it need to run its business on a daily basis and the kind of liquidity it has.

Investing

What are Moats and Floats?

A very successful and consistent investor of Wall Street, Mr. Warren Buffet, who is the founder and CEO of Berkshire Hathaway, coined the term MOAT.

Investing

Difference between market value and book value

All of these terms are used for the financial market and signify a particular meaning to the financial instruments. These terms have a different value for every financial instrument and should be taken into consideration. So let us know about every term in detail:

Investing

What is Debt Ratio to equity ratio?

It is imperative and a task of paramount importance for an investor to examine the financial performance of a company from every angle before investing a single penny in that company. The true worth of the company can be detected by analyzing its financial ratios.

Investing

What is Margin of Safety?

Origin of ‘Margin of Safety’

Investing

Factors Influence Market Trends

There is a massive panic surrounded the markets, where Nifty fell from a record high of 12,003 (on June 3) to 10,990 plunging nearly 9% in the span of 2 months, majorly dragged by auto, banking & financials, energy, infra, and metals stocks. Mid-capsand small caps stocks have gone through a free fall, which is more exhaustive when compared to large caps. So much is the agony in the mid-cap sector that since January 2018, investors have lost more than ₹28 trillion in all the corrected stocks. The BSE MidCap and the BSE Small-capindices lost 21% and 31%, respectively, since January 2018. More than 1,976 stocks traded on BSE have dropped since January - that’s 86% of all traded stocks. Chances are, if you owned 20 stocks, 17 of them would have suffered losses. One of the reasons for Midcap& Small cap downturn:

Investing

What is Inflation and Index fund

With the opening up of the economies and the growth in various sectors, numerous enterprises spread over sectors like FMCG, education, banking, automobile, healthcare etc. have been set up which provide the people with goods and services which are needed and essential for the survival as well as improvement in the standard of living. As these enterprises set up and grow, they require funds to operate which can be in the form of equities or debt from the outside investors for a specified or an unlimited period of time. The sources from where such organizations can raise funds can be: equities, loans, mutual funds, debentures, bonds etc.

Investing

Sector funds

These are equity mutual funds that give you access to a very small part of the overall market; they majorly invest in a particular type of business, industry or a sector of the economy. It can be any sector such as the Education sector, Automobile sector, Health care sector, IT sector, FMCG sector, etc.

Investing

Importance of learning in investing.

Before delving deeper into how vicarious learning plays a crucial role in investing, let us first understand what is vicarious learning. Vicarious learning is the process of learning merely by observing our surroundings. Vicarious learning happens when we as observers pay ample attention to what is happening around, retain the observation, produce similar motor reproduction and are motivated to perform or learn what we see around, than vicarious learning automatically takes place in the process. However, if any of these factors are missing, then the observer is not able to efficiently learn from the surroundings.

Investing

When to look for booking profits or when not to look for booking profits in the stock market?

The whole and sole idea of investing in stocks is to make profits. But, when should you look at grabbing profits and when not to look for profits in the stock market is a science that needs to be learned. Should you be banking on profits when the stock market is hitting a peak? Or, should you hold back on to the investments longer for the profits to multiply?

Investing

Are you an investor, speculator or a gambler?

Who doesn’t want to be Richie rich, right? Each one of us looks for supplemental sources of income to increase our bank balance, isn’t it? And, a fascinating fact is that probably all of us have heard that investing in stocks can help us create good wealth. Each one of us responds differently to the stock market which puts in three different categories of the investor, speculator or a gambler.