18th Jan 2019 | 13:10 PM IST
18th Jan 2019 | 13:10 PM IST
From Warren Buffett to Rakesh Jhunjhunwala there are many stock investors who have mastered the art of wealth creation. There is a reason why some investors always pick the winners while others suffer heavy losses. What is the trade secret which keeps these successful investors ahead of the league? The secret is - Value Investment. It's a great method to minimize the market risk and at the same time to ensure maximum returns. Here's a list of must-dos in stock investment which works wonders in picking your value pick.
For the starters, understand the basic fact: stocks make money because the business, companies are making money. If a company is doing good business and has sustainable growth prospects the share of the company will consequently make money. E.g. Tata Motors is one of the biggest automobile manufacturers in India. It has good market capital and excellent management which ensures good quarterly results and regular dividend payouts. Now that you know these details - imagine how likely is it that Tata Motors will go bankrupt and all shareholders' money will sink along with it? It's impossible, right? It simply means that if the company is good you will grow with the company. So look at the big picture; be a stakeholder of some big success story.
Every day, in the stock market, many stocks rise and fall. People make loads of money in quick succession. On the other hand, many of them a lose a lot of money too. Just remember one important rule: It's not important to hit at every opportunity. You become more susceptible to fail when you try to step on many stones. The best way out of this quagmire is to select a group of stocks based on intensive research carried out by you or by a good stock advisory firm and analyze them with the long-term perspective.
Once you define the group of stocks, you need to analyze all of them with a long term perspective. Letâ€™s understand it in a simpler manner, that how you can analyze your basket to find a value pick.
This iconic quote of Warren Buffett holds the wisdom of value investment. You will fail to make it big even if you invest in good stocks. That's true! Let's illustrate this point with an example. If you invest in Asian Paints stock at this point when it's trading at 934.00 and if it goes on to hit 1000.00 in six months you will only gain 66.00 on each share. But had you invested in the same stock when it was trading at 400-500.00 you would have got real bang for your money when it hits the thousand rupee mark. The point is - it's important to buy the right stock at the right time. And when the right time comes to reach for a bucket and not a thimble.
It is impossible to do everything on your own. To search for the undervalued stocks, ascertain the right time to buy them and keep a regular tab on its movement after buying is a heck of a lot of work. For working professionals, it's virtually impossible. A stock advisory firm is a tailor-made option for such people. The research analysts of these firms with their holistic understanding of stock market help you to chalk out an investment plan which best suits your requirements. Their timely entry, exit calls help you to strike a perfect balance in your stock investment.
We at Niveza are committed to helping all those investors who are either new to the markets or are busy with own stuff and unable to monitor own investment. Our p360Â° variants are designed to ease the investing life of all type of investors. These personalized services form unique options for investors. These services assure you a service guarantee too which is a most unique feature. We promise you an uninterrupted service until you make money (Profits) with us. That is we take all the responsibility of losses made with us. We donâ€™t believe in making money until our investors do. Moreover, our p360o freedom offers you a dedicated relationship manager who can act on behalf of you to capture all the opportunities at right time. With us, your value pick is not so far, kick start your journey with all the above must doâ€™s and if you find anything difficult reach us anytime at 1800-120-0671.
The wires and cable industry in India have come a long way, growing from being a small industry to a very large one, over the past decade. With the segment comprising nearly 40 percent of the electrical industry in India, the increasing demand for power, light, and communication has kept demand for wires and cables high. Growing at a CAGR of 15 percent, boosted by momentum in the power and infrastructure segments. The present estimated per capita consumption is only about 0.5 kg. As GoI is focusing on Â´Make in IndiaÂ´, the industry can grow at a similar rate for the next five years.
India paper market is calculated to grow with a CAGR of more than 10% in value terms during review period starting from 2011-12 to 2016-17 and the market is anticipated to reach more than Rs.75,000 crores at the end of the forecasted year 2022-23. Paperboard & industrial packaging paper, paper stationery, newspaper print, and specialty paper altogether creates the overall paper market. As the paper industry of India is becoming more competitive by adding improvements of key ports, roads & railways and communication facilities, revision of forest policy is required for wood-based paper industry so that plantation can be raised by industry, cooperatives of farmers and state government.
Indiaâ€™s textiles sector is one of the oldest industries in Indian economy dating back several centuries. India's overall textile exports during FY 2017-18 stood at US$ 39.2 billion. The Indian textiles industry is extremely varied, with the hand-spun and hand-woven textiles sectors at one end of the spectrum, while the capital intensive sophisticated mills sector at the other end of the spectrum. The decentralized power looms/ hosiery and knitting sector forms the largest component of the textiles sector. The close linkage of the textile industry to agriculture (for raw materials such as cotton) and the ancient culture and traditions of the country in terms of textiles make the Indian textiles sector unique in comparison to the industries of other countries. The Indian textile industry has the capacity to produce a wide variety of products suitable to different market segments, both within India and across the world. The Indian textiles industry, currently estimated at around US$ 150 billion, is expected to reach US$ 250 billion by 2019. Indiaâ€™s textiles industry contributed seven percent of the industry output (in value terms) of India in 2017-18. It contributed two percent to the GDP of India and employs more than 45 million people in 2017-18. The sector contributed 15 percent to the export earnings of India in 2017-18.
Niveza Editorial Desk :
We are a team of stock market nerds trying to stay ahead of the herd. We spend our grey cells...
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