secrets of safe stock investing
DESCRIPTION
Learn how to invest into stocks safely and take the gamble out of stock investing.TRANSCRIPT
3 March 201211 a.m. – 12 p.m.
Webinar will start shortly.
What will you learn at the end of this Webinar?
• 9 Secrets of ‘Safe Stock Investing’
• How MoneyWorks4me.com can help you do this at the click of a mouse?
Secret #1: Invest in a business you understand
Why?
Because its your hard-earned money that is at stake
You will study and follow them more easily
You will be able to recognize if a company is actually a good or a bad investment
Secret #2: Stick with Large caps predominantly, avoid penny stocks Large caps are relatively safe, established players
Small Caps are more risky, offer less liquidity
More chances of losing your entire investment
Secret #3: Look for companies with a Moat
A moat is a sustainable competitive advantage which prevents competitors from entering a profitable industry
Helps a company earn superior returns
Can help a company maintain and grow itsprofits even in tough times
Examples are a strong brand, patents, switching costs, high capital investments etc.
Secret #4: Do not invest in companies having erratic financials Such companies are most
likely to fall apart during bad times
No guarantee that the company will keep reaping profits year after year
Look at critical parameters like Net Sales, EPS, BVPS, CFO, ROIC
Secret #5: Avoid companies with high debt Debt-free companies:
Financially much healthier
Have surplus cash, which can be invested in various growth opportunities
Firms burdened with debt
Face tough times when the economy turns sour
If interest rates move high , cost of borrowing funds also rises sharply, servicing the debt becomes increasingly expensive and it eats into the company's profit
Secret #6: Look for a trustworthy management
One of the most important but most difficult to assess parameters
Things to look for: Competence, Transparency, Honesty,Shareholding and Pledging of shares
AVOID companies where shares pledged by promoters are high
Secret #7: Look for a ‘Margin of Safety’
ALWAYS demand a margin of safety or discount when you buy stocks
Helps to Minimize Risk and protect your capital
Further, helps you make bumper returns
Secret #8: Diversify, not over diversify!
Why?
Reduces risk, but only to a certain extent
Protects your investment from downfall in any one stock/sector/industry
Secret #9: Always use a Stop Loss!
Limit’s your losses
Protects your Profits
Don’t have to monitor your investments daily
How a trailing stop loss works?
To summarize…
Secret #1: Invest in a business you
understand
Secret #2: Stick with Large caps
predominantly, avoid penny stocks
Secret #3: Look for companies with a Moat
Secret #4: Do not invest in companies
having erratic financials
Secret #5: Avoid companies with high debt
Secret #6: Look for a trustworthy
management
Secret #7: Look for a ‘Margin of Safety’
Secret #8: Diversify, not over diversify!
Secret #9: Always use a Stop Loss!
To summarize…
How MoneyWorks4me.com can help you do this at the click of a mouse?
• Unique tools help you invest in safe stocks
• 10 YEAR X-RAY• Management X-RAY• Company Pulse Report• Price Calculator• Portfolio Managers• MoneyWorks4me Filter
Q & A Session
Contact Details: Write to us at – [email protected] us at - 91-20-67210600Visit us at - http://www.MoneyWorks4me.com
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You can learn more about Investing in stocks the safest way at
http://moneyworks4me.com/stockshastra