Stock Shastra

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 amount for it. This is where the [...]

Many of us wonder where to find good investment worthy companies? Where do I begin is a big question and looms large in the minds of investors. Most of us get stock tips and recommendations. All that is fine, but how can I search for a good company on my own?
I’ll tell you what I do. I have a simple method of spotting great companies. I look around myself. What is it that I like the most? Where do I shop most often? Are there any brands towards which I have a special liking? Or is there some brand I definitely support, defend, love, etc.
You must be wondering how this will help you with stock investing. Well let me tell you one thing. Fundamentally strong companies always have a moat. Now you must be wondering what the heck is a moat? Don worry it only sounds complicated, but is a [...]