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“Ask and it will be given to you; seek and you will find; knock and the door will be opened to you. For everyone who asks receives; the one who seeks finds; and to the one who knocks, the door will be opened. Matthew 7:7-8

13 Feb 2018


   This is how I research to find out a share to invest in long-term:
I have indicated many times that out of the listed universe of around 7000 stocks listed on the BSE, it is extremely difficult to pick the “best” stocks to invest, as it depends on person to person. But my method of selecting stock is furnished below.
1) Balance sheet.
2) Cash flow statement.
3) Debt/Equity ratio. Zero debt is what gets me really excited. Eps should be healthy. P/e ratio should not be very high. It should also not be very low.
4) Checking whether the brand is well recognized or not.
5) If 1, 2, 3 and 4 make me exuberant, I download the annual report, print it out and read it thoroughly with a pessimistic viewpoint. This is because annual reports can be too flattering. Correlate what you’re reading with 1, 2, 3 and 4.
6) Think of the company’s long term prospects. For ex- Housing Finance companies would be notching up incredible growth for the next 15 years or so.
PS: With enough looking, you can strike gold. It’s not that difficult.
                                                                                            CHRISTY BOY J, An investor  since 1988.

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