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 about the investment philosophy practiced by him. The letter becomes even more endearing because every year, since year 1977, Buffett’s letter accompany’s the Berkshire Hathaway’s annual report. For sure, we…
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 value investing. We tend to shop more during the SALE season. Recently I upgraded my phone to a Samsung S20 FE. It’s almost a 1.5-year-old model, but considering that it’s…
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.
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
Stock market investing is not only about buying and selling stocks. After a stage, the investors begin to see the investments as a collection of stocks. Single stocks transform themselves into a shares portfolio. A stage comes when the investor starts to pay less attention to individual stocks. For him/her, more important is the present…
The formula of working capital (WC) has two components, current assets, and current liabilities. Both are the numbers of the past. Though it is derived from the past numbers, the working capital use is in the future. This is the reason why it is a vital number in both corporate finance and valuation. Companies report…
Recently I was reviewing a list of stocks from the BSE-500 index. I found some stocks showing negative shareholders’ equity. I wondered, what caused the negativity? The companies I’m talking about are these: None of the above companies are financially healthy. To cross verify, I checked their overall scores in my stock analysis worksheet. These…
People who are hunting for bargains in the stock market may fall prey to the value trap. A stock whose price is falling or is trading at a low PE ratio may prove to be a trap instead of an investment. Fans of Warren Buffett would love to emulate his investment style. But his style…
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I generally write about fundamental analysis of the business. I got this feedback that such articles are less helpful for the novice. They would prefer a more basic write-up that covers stock investment for beginners. So, I thought to give it a try in my writing style. Stocks trade in the stock market. So allow…
Value investors keep looking at the signs of a market crash. Why? Because they make more money during a crash than in normal times. It will not be an overstatement that they crave for the index to crash. Why? Because it is the time to buy the best shares. The indices move in cycles. There…
There is no doubt that Nifty and Sensex are trading at their all-time highs. For the last two days, from 19-Oct’21, the market is showing signs of correction. In days, the Nifty50 has fallen by about 2.5%. So, our stock market is overvalued or undervalued? People are waiting for a sizeable correction of the market….
