Stock Basics
When To Sell A Stock At A Loss?
The purpose of this blog is to highlight the importance of timing the sale of stocks sitting in an investment portfolio. When to sell a
22-11-2022 No Comments
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The purpose of this blog is to highlight the importance of timing the sale of stocks sitting in an investment portfolio. When to sell a
Why I’m blogging about this topic? Recently I met a person who was inclined to explore stocks but wanted to practice only defensive investing. He
Introduction: Buying stocks of a company makes one a proportional owner of it. Suppose there is a company whose shares you own. This company made
Warren Buffett is an investor that we can emulate. Warren Buffett’s letter to shareholders provides valuable insights and understandngs. These letters are full of hints
The focus on buying stocks at a discount has unparalleled benefits. It is especially true for people who are accumulating assets through the process of
Why do the big companies have debt? Are there disadvantages to being a debt-free company? Debt is Good or Bad for Companies? We often see
A more common term for shareholder equity is Net Worth. It is visible on the company’s Balance Sheet. This number highlights an approximate liquidation value,
P/E ratio in its basic form (trailing P/E) may not be as useful. But there can be multiple derivaties of it. P/E ratio seen through the lens of ‘earning yield’ or ‘PEG ratio’ gives good insights into price valuation. I personally love valuing high P/E stocks using the ‘forward P/E’ method.
The debt-Equity ratio (DE) is easy to calculate. But its interpretation is not as straightforward as we think. We generally assume that a DE ratio of 2 is acceptable. But for analysts, this number is too high. Let’s look at the DE ratio from an analyst’s perspective.
Bonus issue and stock splits make news for good companies. Long-term shareholders like this corporate action as it can increase the demand for their holding stock.
With value investing comes a few synonymous terms like reading financial statements, intrinsic value, over and undervaluation, Benjamin Graham, Warren Buffett, long-term holding, etc.
Smart investors would not ignore the three investment rules described in this article. This blog is inspired from a book called “The Intelligent Investor” written by the Guru of Warren Buffett, Benjamin Graham