In the stock market, fortunes are made and lost each day. I as an investor seek refuge in concepts akin to medieval fortifications. Imagine a castle surrounded by a deep, wide trench, protecting it from attackers and providing a strategic advantage in times of war (attack). In stock investing, the economic moat serves a similar…
The Price-to-earnings (PE) ratio stands as a fundamental metric for the interpretation of a stock’s price valuation. Here, the valuation of the company is measured relative to its profits. Understanding the nuances of low PE stocks is crucial for investors as it can offer valuable insights into potential investment opportunities. Here is a list of…
If you go by the definition of penny stocks, these are stocks of small companies that trade at a price below Rs.100. In the US, stocks trading below $5 per share are considered penny stocks. Generally, in the search for penny stocks, people often look for companies with solid growth and zero debt. But is…
It was my goal to construct a stock portfolio including dominant and monopoly companies. In this article, I’ll share a method of exploring the best monopoly stocks. Over the years, I’ve built multiple algorithms to identify quality stocks. I’ll share with you one method which I use to identify monopoly companies operating in India. Check…
Choosing from a list of the best FMCG stocks for the long term depends on various factors like financial health, market trends, and company strategies. Historically, giants like Hindustan Unilever Limited (HUL) and ITC have shown resilience and consistent growth. HUL has a strong portfolio of brands, while ITC diversifies into various sectors, providing a…
What is the average return of Sensex? The simplest answer to this query is 13.81% per annum. But to give you this answer, I’ve made a critical assumption. It has been assumed that the holding time is three (3) years. Increasing the holding time to five (5) years will change the average return to 12.76%…
Option chain analysis is a tool that can add to the investment strategy of long-term investors. In this article, I’ll first talk about the fundamentals of option chain analysis. We will also see how to navigate NSE India’s option chain data. Then we will demonstrate the potential benefits of the option chain, for those who…
[Check here for a list of blue chip stocks]. Investing in Blue Chip Companies is like having superheroes in your portfolio. Their stability, reliability, and financial strength make them your financial allies. Consider them for the long haul, and they could be your ticket to long-term financial growth. But remember, even superheroes have their weak…
When we search for high-profit shares, we are searching for stocks with the most profitable underlying business. Stocks of extremely profitable businesses bought at a fair price can yield substantial returns over the long term. Check our list of profitable businesses. In this article, I’ll also explain how my Stock Engine filters highly profitable stocks from…
To understand if Redington’s Stock is undervalued or not, we must first look into its business. On the face of it, the company looks like a typical IT company, but it is not. Looking at its business model will tell us why a strong-looking company like Redington trades at a PE multiple of below ten…
In this article, I’ll try to use the method proposed by Mr. Aswath Damodaran to calculate the Equity Risk Premium of an Index. I’ll use the S&P BSE 500 index for our calculations. We can apply the same method of calculation to the equity risk premium (ERP) of individual stocks. But before proceeding further, allow…
We’ll delve into the investment minds of Warren Buffett and Charlie Munger as we explore their profound perspectives on the high returns of capital. We’ll try to gain insights by looking into their perspective on capital deployment by companies. As an investor, we know that a company that can yield high returns of capital will…
