Don't try to shoot for big gains by finding the next Standard Chartered. Instead, focus on finding solid companies with shares selling at low valuations.
Understanding the market's history can help you avoid repeated pitfalls. If people try to convince you that "it really is different this time," ignore them.
Don't fall into the all- too-frequent trap of assuming that a great product translates into a high-quality company. Before you get swept away by exciting new technology or a nifty product, make sure you've checked out the company's business model.
Don't be afraid to use fear to your advantage. The best time to buy is when everyone else is running away from a given asset class.
Attempting to time the market is a fool's game. There's ample evidence that the market can't be timed.
The best way to reduce your investment risk is to pay careful attention to valuation. Don't make the mistake of hoping that other investors will keep paying higher prices, even if you're buying shares in a great company.
Cash flow is the true measure of a company's financial performance, not reported earnings per share.
Monday, November 24, 2008
how to become a successful investor
Successful investing depends on personal discipline, not on whether the crowd agrees or disagrees with you. That's why it's crucial to have a solid, well-grounded investment philosophy.
1. Don't buy a stock unless you understand the business inside and out. Taking the time to investigate a company before you buy the shares will help you avoid the biggest mistakes.
2. Focus on companies with wide economic moats that can help them fend off competitors. If you can identify why a company keeps competitors at bay and consistently generates above-average profits. You¿ve identified the source of its economic moat.
3. Don't buy a stock without a margin of safety. Sticking to a strict valuation discipline will help you avoid blowups and improve you investment performance.
4. The costs of frequent trading can be a huge drag on performance over time. Treat your stock buys like major purchases, and hold on to them for the long term.
5. Know when to see. Don't sell just because the price has gone up or down, but give it some serious thought if one of the following things has happened: You made a mistake buying it in the first place, the fundamentals have deteriorated, the stock has risen well above its intrinsic value, you can find better opportunities, or it takes up too much space in your portfolio.
1. Don't buy a stock unless you understand the business inside and out. Taking the time to investigate a company before you buy the shares will help you avoid the biggest mistakes.
2. Focus on companies with wide economic moats that can help them fend off competitors. If you can identify why a company keeps competitors at bay and consistently generates above-average profits. You¿ve identified the source of its economic moat.
3. Don't buy a stock without a margin of safety. Sticking to a strict valuation discipline will help you avoid blowups and improve you investment performance.
4. The costs of frequent trading can be a huge drag on performance over time. Treat your stock buys like major purchases, and hold on to them for the long term.
5. Know when to see. Don't sell just because the price has gone up or down, but give it some serious thought if one of the following things has happened: You made a mistake buying it in the first place, the fundamentals have deteriorated, the stock has risen well above its intrinsic value, you can find better opportunities, or it takes up too much space in your portfolio.
is this the time to invest in shares?
I don't know if this is the time to invest or not, but what i know is lots and lots of people read Abhiyaan. Because of Abhiyaan head line Banks will not be able to make profit in the head line made the crash yesterday. People do not read the news fully as it is written in the news itself L/C income of banks is only 5-6% and if you see the profit made by most of the banks is higher in 1st quater of this year. People belive in newspaper so much in Nepal they follow blindly what they say without finding the facts. You should read and hear news but ...but .....you should use your head to find out the facts. This is my opion you should belive in your self.THANKs
I don't know if this is the time to invest or not, but what i know is lots and lots of people read Abhiyaan. Because of Abhiyaan head line Banks will not be able to make profit in the head line made the crash yesterday. People do not read the news fully as it is written in the news itself L/C income of banks is only 5-6% and if you see the profit made by most of the banks is higher in 1st quater of this year. People belive in newspaper so much in Nepal they follow blindly what they say without finding the facts. You should read and hear news but ...but .....you should use your head to find out the facts. This is my opion you should belive in your self.THANKs
reasons for downfall of share price
I see basically two reason for current downfall of share prices. The first one is the small shareholders who easily loose their confidence and tends to sell their share at whatever price they get. In fact they would not have much effect with plus/minus 5-10%. The second major one is the market players i.e. share maphias who intentionally decreases the prices for their own benefit. We see share prices start to decrease through small volume of transactions i.e. 10-20 kittas only. So I also urge all the genius investors not to loose your confidenceYOU WILL LOSE MORE IF BECOME MORE PANIC THANX
shares for best results
Dear Friends,
It is my personal view, but if you can manage funds for around a year, this is the right time to invest in shares for best results as the prices have gone down significantly, you can have good stocks at very good prices. We can not predict that market will go down further, but once it has already lost more than 500 pts, it is time to go up, it may go upto 700 then bounce back.So happy buying, call your broker to order shares now.
It is my personal view, but if you can manage funds for around a year, this is the right time to invest in shares for best results as the prices have gone down significantly, you can have good stocks at very good prices. We can not predict that market will go down further, but once it has already lost more than 500 pts, it is time to go up, it may go upto 700 then bounce back.So happy buying, call your broker to order shares now.
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