Investing in Stocks is not Rocket Science, not as difficult as it has been made out to be. You just need to look at 6 Financial Parameters to shortlist a wonderful company! Our tendency is to pick stocks based on its Price/Earnings, Price/Book Value, Charts or recommendations. These methods are completely inadequate because they over-simplify and lead you to take wrong decisions. From all the 100+ parameters, all you need are just 6 parameters! 1. Net Sales 2. Earnings Per Share (EPS) 3. Book Value per share (BVPS) 4.Net Operating Cash Flow 5. Return on Invested Capital (ROIC) 6. Debt:Net Profit Ratio. Seen Together and Over 10 Years these 6 reveal the truth about the Fundamental Strength of the Company. Remember! Buy a Wonderful Business and not just a Stock A wonderful business is one which has done well and will continue to grow in the future. It mainly has three characteristics: 1. Excellent Financial Track Record 2. Sustainable Moat 3. Respectable Management Now you must be now asking yourself the question – At what price is the stock worth buying & Selling? Value Investing Guru – Benjamin Graham insists on a 50% MOS while buying stocks and selling them once it crosses its MRP. We @ moneyworks4me help you identify Stocks which are Fundamentally Strong with Sustainable Moat & Respectable Management for Investing. Invest Safely & Wisely : Its your Hard Earned MONEY.
Posted on: Fri, 26 Sep 2014 05:28:06 +0000
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