1. Compares with peers to find out the best one. 2. Checks that #stocks shareholding pattern for pledging. 3. Adds his few custom set of ratios to judge financials. 4. Calculates the fair value with inbuilt valuation calc
5. If Overvalued, then adds to his watchlist for regular updates.
6. If Undervalued, then reads the company's concall, presentations, annual report, etc to be sure of fundamentals.
7. Then adds to his #portfolio for smart analysis.
It all started on 𝗩𝗮𝗹𝗲𝗻𝘁𝗶𝗻𝗲’𝘀 𝗱𝗮𝘆 when one of the promoters G. Ramakrishnan reaped his love for business & wrote a #letter to his four friends.📝
The letter was so compelling that all of them left their well-paying jobs. Their family & friends were shocked.
They didn't have the #business plan ready. Being from a middle-class family with no job security, they were barely meeting their ends. Pressure from the families started to build.😰
After various चाय पर चर्चा, they decided to enter the manufacturing sector.
How many stocks should you have in your portfolio?
The key to investing is to make a balance between the risk and the return. And it can be summarized in a word: “Diversification”. #investingkasearchengine#investing
A Thread🧵
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Diversification
It is the art of spreading your investment in various categories of Assets, which helps earn the desired returns without putting your portfolio at high risk.
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How much diversification is enough?
In investing you have heard that “Don’t put all of your eggs in one basket”.
Diversification is not rocket science. It is simple but not that easy
Let’s understand about “Excess diversification” and “less diversification”
Larsen & Toubro Ltd is an Indian multinational technology, engineering, construction, manufacturing & financial services conglomerate, headquartered in Mumbai.
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Friends from school, L&T has come to set up a small office in India to represent a dairy equipment manufacturer from their home county Denmark.