Tag Archives: EPS

John Christy’s Style of Stock Investing

In early nineties, my dating with stock market started. When I was studying 12th standard, my physics teacher ( colleague of my dad) said to be making huge money from share market. India Today and my physics teacher were the two chief sources that introduced me the world of quick riches. At that time,  my physics teacher borrowed around Rs.50000 from my dad to invest in a stock ( I think That was Vysya Bank) which was rumored to declare a bonus issue. It indeed declared  5 shares for every one share bonus and the stock zoomed to 5 times in 25 days. Not only he returned the money within a month, he also built a superb house with the profit he earned. As I myself witnessed the quick appreciation in one month time, It made me to think only about stocks, stocks and stocks. In the same time, India […]

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Category:In the News

How to decide whether a company is worth investing in or not?

I earlier shared my views on how to look around us for great investment worthy companies. Spotting a great company is just the first step. We also need to make sure that the company we are going to invest in is also fundamentally very strong. Before I delve into to this topic, let me share a very basic fact with all of you. How do we make profits when we invest in a company? Price appreciation Dividends Let’s take the first and the primary reason why we can profit from investing in stocks. A stocks price can rise for two reasons: Speculation in the short term Company performs well We have no control over speculation. It is highly risky and a short term phenomenon, whereas in the long run, what matters is a company’s Performance. Thus, if and only if a company performs well, will the markets pay a higher […]

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