The purpose of this article is to share my point of view on the concept of shareholder value. The piece is written from the perspective of an investor. For an investor, a company that is managed with the goal of enhancing the shareholder’s value is a good company. But it is also necessary to check…
The purpose of this blog is to highlight the use of the Magic Formula. Joel Greenblatt published the concept in his book called “The Little Book That Beats The Market” in 2006. The author shared a straightforward methodology to screen stocks of profitable companies available at a comparatively undervalued price. Undervaluation is measured using earning…
The purpose of this blog is to highlight the importance of timing the sale of stocks sitting in an investment portfolio. When to sell a stock? We often do not give too much weight to this question. There are some stocks that must be sold before it’s too late to exit. This article will show…
The purpose of this blog is to highlight how a user can use The Stock’s Engine to analyze stocks online. One of my acquaintances was using a free portal for stock analysis. Recently, I showed him our Stock Engine. He immediately commented, “these are the answers that I wanted from a stock portal. Though The…
Why I’m blogging about this topic? Recently I met a person who was inclined to explore stocks but wanted to practice only defensive investing. He was a regular investor in mutual funds. He would explore direct shares purchase, but only with safe stocks. I know, a lot of people have similar mindsets. How risk-averse people…
Why I’m blogging about this topic? Considering the COVID-led collapse of the market, I was thinking about investing in stocks of Airline Companies. But when I saw their Profit & Loss Accounts for the last five years, I became hesitant. Why? Because even Interglobe Aviation (Indigo) has reported losses since covid. In this article, we…
Buying stocks of a company makes one a proportional owner of it. Suppose there is a company whose shares you own. This company made about Rs.2,140 crore net profit in a financial year (FY). Let’s assume that this profit was also collected as cash in the same FY. If you are a majority shareholder of…
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…
How to evaluate the fastest-growing companies in India? This article can shed some light on how to do it. We all want to buy a prospective ‘growth stock’, but we often end up buying the wrong one. How to eliminate this miss? Read more about stocks with the highest last 10Y returns. List of fastest…
We as stock investors would like to invest in a financially stable company. What is the measure of an unstable company? A company that is on the verge of going bankrupt can be called unstable. Altman Z-Score is a financial model based on which bankruptcy can be predicted. The Altman Z-Score model can point toward…
Among other metrics, our stock screener stands out because of two important numbers, the overall score, and intrinsic value. The intrinsic value of stocks is estimated based on a few standard financial models like DCF and a few of my own algorithms and logic. But the overall score-rendering proved to be more complicated. Why? Because…
