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5:40-42 - "If a man wants to sue you for your coat, let him have it and your overcoat as well. If anybody forces you to go a mile with him, do more - go two miles with him. Give to the man who asks anything from you, and don't turn away from the man who wants to borrow."

13 May 2018

SHARE MARKET--8 steps to select a stock to invest in Indian stock market:

1.Does the company have good fundamentals?

2. Do you understand the products or services offered by the company?

3. Will people still be using this product or service in 15-20 years from now?

4. 5. What is the company doing that its competitors are not?

Does the company have a low-cost durable competitive advantage?

6. Does the company have big debt?

 7. Is the company’s management efficient and qualified?

 8. Is the company constantly in the news and overly popular?


8 Financial Ratio Analysis that Every Stock Investor Should Know:
1.       Earnings Per Share (EPS) – Increasing for last 5 years
2.       Price to Earnings Ratio (P/E) – Low compared to companies in the same sector
3.       Price to Book Ratio (P/B) – Low compared companies in the same sector
4.       Debt to Equity Ratio – Should be less than 1
5.       Return on Equity (ROE) – Should be greater than 20% 
6.       Price to Sales Ratio (P/S) – Smaller ratio (less than 1) is preferred
7.       Current Ratio – Should be greater than 1
8.       Dividend Yield – Depends on Investor/ Increasing preferred

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