Investment Criteria of Benjamin Graham
Posted by mvalappil on Oct 07, 2011 | Leave a Comment
Benjamin Graham is the man credited with founding the entire value investing field. When it comes to investing in shares of a company, only two simple factors are important to Benjamin Graham – The real value of the company and how much you are paying to own it. Value investing looks for good companies with low price. Here is a short summary of his investment criteria.
Non-technology stocks.
Large and prominent companies.
Current...
Shares: Hold or Sell?
Posted by mvalappil on Dec 20, 2010 | 2 Comments
Investors normally buy shares or invest in shares of the companies based on its fair value. If the current price is considerably at a discount to its intrinsic value, it becomes a good buy. Based on this, most of them maintain a target price on which they may consider to sell. I normally buy shares with a target price for 3 years. Target price is fixed considering various estimates and assumptions about its future...
You don’t have to get poorer!
Posted by mvalappil on Dec 07, 2010 | 4 Comments
‘The rich get richer and the poor get poorer’ – this is a catchphrase that people often use to criticize uneven economic development. It may be a fact though. I am not going to write a scholarly discussion on the economic theory here, but just to discuss from a common man perspective how does it happen!
How do rich get richer? If you have one million and deposit in a bank fixed deposit at a rate of 5% per annum,...
Know the Basic for Stock Market Investing
Posted by mvalappil on Oct 24, 2010 | 2 Comments
Don’t put all your eggs in one basket! Don’t put all your savings in stock market! Don’t put all your investment in one company! – Diversify
Diversify into a number of good companies – No body knew precisely beforehand that Satyam Computers, which was fourth largest IT company in India, would end up in such a mess! So how many companies to invest in? Ideal number is 30 companies – 50% in 10 companies,...
Invest in Gold Through Dubai Gold Securities
Posted by Drops Savings on Aug 10, 2010 | Leave a Comment
Throughout the centuries, gold has managed to become a profitable investment vehicle for millions of people around the world. Despite geopolitical instabilities, warfare, natural disasters, and economic meltdowns, this commodity has not only survived but has substantially thrived when compared to the world’s leading currencies. During the last 10 years, gold surged 338.21%. Central banks, mutual funds, and regular...
If you followed my reviews… !
Posted by mvalappil on Jun 27, 2010 | Leave a Comment
Since I started posting weekly portfolio review from 24th April in my blog, I have been listing a number of shares that are best buys in my watch list each week. Here I am trying to illustrate what would be the position of your equity portfolio now if you had been following these best buys.
In this illustration, I assume that you invest Rs. 5,000 on a single buy order and follow the rules of a disciplined investor....
Disciplined investor
Posted by mvalappil on Jun 27, 2010 | Leave a Comment
Let me share with you the investment techniques and methods that I follow for self discipline in equity investment. It is not possible to time the market as we cannot say how far it will go up before it crashes, and how far it will go down before it bounces back. It is also necessary to avoid over exposure to a single company or sector. Diversification in sector and companies is also important, as the investment is...
Build your equity portfolio with Drops Savings and Investments
Posted by Drops Savings on Apr 04, 2010 | Leave a Comment
There are thousands of companies listed in Indian stock exchanges. It may not be possible for a common man to do research to find out the right company to invest in. The information and recommendations found on various websites are often confusing or misleading. It is not economical for small scale retail investors to spend money for independent research reports which are very few and expensive. It does not mean the...
When to Buy and Sell shares?
Posted by Drops Savings on Apr 04, 2010 | Leave a Comment
When to buy?
You can buy shares any time. Look for good companies with shares at attractive valuation. Best proven method of investing in shares is invest regularly and periodically. Invest a portion of your savings in to shares every month, don’t bother about index level. It may go up and down. But a regular investor can average the cost and earn a decent return in the long run.
When to Sell?
Sell when your investment...
Spend or Save?
Posted by Drops Savings on Mar 28, 2010 | Leave a Comment
My uncle once said, “Nobody will see 100 Dirhams kept in the pocket, but if you buy a shirt and wear it.”
If asked why do you work, the answer will be to make money. Have you ever thought yourself why do you make money? Do you earn and save for the sake of making more money? It shouldn’t be so, really.
The answer can be ‘for living’. Yes we make money for living. Then why do we save? For living in...
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