It will not be wrong to say that Philip Fisher was one of the first influencers who promoted the concept of fundamental analysis of companies. He also wrote a book called Common Stocks and Uncommon Profits way back in 1957. But the book is as relevant today as it was ground-breaking during its first publication. The focus…
![How To Build A Winning Stock Portfolio [India]](https://ourwealthinsights.com/wp-content/uploads/2010/06/Stock-Portfolio-Image.png)
Knowledge about how to build a stock portfolio is perhaps as essential as the stock analysis itself. Though the former looks more daunting to me. There are processes and financial models (like DCF) in place, using which one can analyze a business. But when it comes to stock portfolio building, there is no established process. A portfolio that might look apt…
Let’s learn to analyze a stock from the perspective of the total return it yields for shareholders. To get a feeling about the total return, we will have to look back and brush up on some basic concepts. Suppose there is a company that makes a cash profit of Rs.10 Crore. How to utilize the profit? Considering…
[Updated] Discounted Cash Flow (DCF) method is a better way of intrinsic value calculation. The DCF model is derived from a concept called Net Present Value (NPV). Why Intrinsic Value is required? Because based on it, one can judge if the stock is fairly priced or not. DCF method is not an easy way of doing price…
Before we can do a leverage analysis of a company, we must know the basic definition of “leverage.” What is leverage? There can be two sources of capital for a company. First, equity and second is borrowed money (loan/debt). When a company uses loans to fund its capital requirements, we can say it is leveraged. What does the…
![Compare Indian Banks: A Quick Fundamental Analysis [2023]](https://ourwealthinsights.com/wp-content/uploads/2021/05/Compare-Indian-Banks-Image4.png)
Let’s compare Indian Banks to know which are the best banks and which are avoidable. A Screener for Top 20 Banks. Since 15th-Feb’21 nifty bank has corrected from 37,300 levels to 33,100 levels as of today (10-May’21). This is a correction of almost 11%. [For a broader perspective, check out our guide on Top Stocks…
In our series of articles about stock basics, we talked about the economic moat of a company. A wider Moat gives an edge to the company over their rivals. Such companies operate with high margins. But how to identify moat companies? In our previous article, we’ve talked mainly about the qualitative factors that give moat to companies. But it is also…
Generally, when we analyze stocks, it is based on quantitative data. But everything about a company is not quantifiable. Judging the quality of Management based on the numbers alone is not possible. Hence, before digging into the numbers, starting stock research by just observing a company is considered good. What to watch in a company? We can look at the group of people who…
A business that operates in an industry (sector) having fierce competition cannot display a competitive advantage. But a company dwelling as a monopoly (like Microsoft) will have an exceptional advantage. So, a sector with too many competitors in it is not good for its companies. As a customer, we would like to buy products of…
Understanding a company is essential before buying its stocks. Why? Because Stocks represent proportional ownership in a company. So, what is the utility of this information about stocks/business? Let’s understand this with an example. Consider yourself looking at two companies, Nestle India and Jet Airways. Former represents a healthy business, while the latter is languishing with…
Analysis of stocks that are new in the market is not so simple. What is the problem? The analyst must make some assumptions. For the company which has 10-year records, the assumptions-list is much shorter. Recently I met a friend who enquired me about the recent IPO (in Dec’2020) of Mrs. Bector Food. Someone advised…
Some people might question the utility of my Stock Analysis Worksheet. Why? Because it mostly rates its stocks as overvalued or of a low overall score. Some users find it frustrating and send emails to me about the plight. I can understand this feeling. We want the worksheet to throw a list of names of high-scoring, undervalued stocks….
