How to generate Stock Investment Ideas? With more than 6000 companies listed in India, it’s tough for an individual investor to conduct in-depth analysis like industry analysis, moat analysis, management analysis, valuation, etc. and decide the stock in which he can invest. In 1993 Adam Smith, author of Supermoney asked Warren Buffett in an interview […]

UNDERSTANDING CASH FLOW STATEMENT Why analyze the cash flow statement? The cash flow statement tells you how much cash went into and out of a company during a specific time frame such as a quarter or a year. You may wonder why there’s a need for a cash flow statement because it sounds very similar to the profit

UNDERSTANDING INCOME STATEMENT  Why analyze the Income statement? The income statement answers the question,  “How well is the company’s business performing?” Or   “Is it making money?” i.e., It summarizes how the company’s operations performed during a given period.  It tells you how much money a company has brought in as revenues How much it has

UNDERSTANDING BALANCE SHEET Why analyze the balance sheet? A balance sheet is the representation of a company’s financial health. It is like a company’s credit report because it tells you how much the company owns(assets) relative to what it owes(liabilities) at a specific point in time. It basically lists, the assets that the company owns

Why we should read the Annual Report? Every investor will have three kinds of advantages. 1. Information Advantage 2. Analytical Advantage 3. Behavioural  Advantage This chapter will deal with the Information Advantage and the other two will be covered in later chapters. Information Advantage:  Every investor should make use of information available in the public

The Most Important Things in Investing 1. Second-Level Thinking Anyone can achieve average investment performance, all you have to do is to invest in an index fund that buys a little of everything. That will give you what is known as “market returns”, merely matching whatever market does. But successful investors want more. They want

Mastering the Market Cycle The odds change as our position in the cycle changes. If we don’t change our investment stance as these things change, we are being passive regarding cycles, in other words, we are ignoring the chance to tilt the odds in our favor.  But if we apply some insights regarding market cycles

Investment v/s Speculation Most buyers and sellers in the stock market, don’t know whether they are investing or speculating. Everyone who buys and sells a stock has become an investor, irrespective of what he stocks he buys, or for what purpose, or at what price, or whether for cash or on margin. Investing and speculating

Myths of Stock Market Many investors wonder whether they should invest in stocks. But before deciding to invest, it’s important to have an accurate understanding of stocks. Understanding how to invest in the stock market is all about dispelling popular myths about the stock market. Myths are, typically, based on half-baked knowledge and incorrect understanding

Why Stock Market Is The Best Investment? There is a famous quote from Bill Gates that says, If you are born poor, it’s not your mistake, but if you die poor, then it’s your mistake. I decided not to do that mistake in my life. Since I was a kid, I always wanted to be