Fundamental analysis is carried out to find the intrinsic value of a stock and that is the building block of value investing. (2/9)
Value Investing is nothing but an investment strategy of picking undervalued stocks and by undervalued stocks we mean, a stock that is trading at a price lower than its actual value. (3/9)
But how will you find that perfect stock? Well, out of many ways, Top-down Approach and Bottom-up Approach is one of the most popular. (4/9)
Let's understand the two. 👇👇
Let's understand the two. 👇👇
Top-down Approach:
In this method, a particular industry is selected and once that is done, the next step is to find the perfect stock to invest in that industry. And to find the industry... 👇👇 (5/9)
In this method, a particular industry is selected and once that is done, the next step is to find the perfect stock to invest in that industry. And to find the industry... 👇👇 (5/9)
1⃣Firstly, find the Future of the sector is analysed.
2⃣Secondly, you can also go for Sectors that are out of Favour.
3⃣Thirdly, keep a keen eye on Changes in Government regulations.
4⃣Lastly, take a look at the Technology Improvements in the sector. (6/9)
2⃣Secondly, you can also go for Sectors that are out of Favour.
3⃣Thirdly, keep a keen eye on Changes in Government regulations.
4⃣Lastly, take a look at the Technology Improvements in the sector. (6/9)
Bottom-up Approach: This is the opposite of the previous approach. Here you do not search for a particular stock in a particular industry.
You will be buying stocks from any industry through..
👇👇 (7/9)
You will be buying stocks from any industry through..
👇👇 (7/9)
1⃣The companies you know and understand.
2⃣The companies around your profession.
3⃣Based on the insights of your Social Circle. (8/9)
2⃣The companies around your profession.
3⃣Based on the insights of your Social Circle. (8/9)
This is just the first step for finding the right stock, there is a lot more to it, find this out only on Finology Blogs. (9/9)
blog.finology.in/stock-market/h…
blog.finology.in/stock-market/h…
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