Thread by @TreasureHunt_TH

Investor Guide:

There are lots of investors in our country who are interested to learn the art of investing in stock market. The process of investing starts with analyzing the industry and stk. We would like to share some of the research method we use to identify and pick stks.

It’s a very simple and easy to adopt method and doesn’t require much of expertise and can practice while taking investment decisions. Let’s look at what we do….

We analyses industries and companies based on some parameters. We create a basket of stocks from the best industries, filter the most favorable ones among. Once it goes thru all the screening parameters and conviction criteria, we start investing in them.

Our experience shows there are lots of successful investments and some mis judgement also during the past investment cycle.

Lets look at the parameters now....

•Understand the industry and business: -- Think about you are planning to start a business.....

Will you look for opportunity in an industry which you don’t understand…? Investing in a a share is like investing in a business or buying a business. Stay away from business which you can’t understand or complicated.

•Long terms business opportunity: -- We don’t start business for short term, like wise we shouldn’t invest in a business which can’t sustain for a long period of time. Look for stocks which qualify these criteria.

The company should have long term competitive advantage of its products or services. Can they protect or improve their mkt share etc.
•Promoter or Management Quality: -- Investment in companies with trustworthy management, especially in current scenario.

People who can delivery results and return for the investors. Past growth of the company, Promoter stake they hold (75% is very good sign), Promoters increasing stake etc are some of the parameters.

•Right Price: -- Investor shouldn’t end up paying more than the value of the stock. Current scenario most of the socks are trading way below the valuations. But we follow a method called Margin of Safety (MOS) while picking stocks.

It’s the difference between Current Mkt Price Vs Intrinsic Value. It helps investors to stay safer during major falls or volatility. We suggest investors to learn this part thru available methods using google platform.

At a difficult time like this, suggests investors to take out some time and learn by themselves. One should be fully convinced before putting their hard-earned money in any stock.
More ideas and methods to follow……Stay tuned.

#Valueinvesting #Longterminvesting #smartinvestors