Sunday, November 4, 2007

Investing Ideas

Invest in quality business,not stock symbols:

For most people investing in stock is little more than watching the trail left by the stock symbol as its prrice wanders along some drunken path. They know that the symbol is associate with a company while not sure what is expected of this coompany to ensure thats its share price will rise. It is the case of letsd sit back and hope for the best.
Then there are others who deliberately do not want to know anything about the activities of the company. They want to studey the pure movements of the price. This is like trying to bridge without looking at the cards.
The more we know about the company , then we have more confident about the price of the stock , not on day to day basis but ove the time.
Before trying to to buy a stock , thing in terms of buying a whole company, just u were buying a store down the street. You would definately like to what r it productsn how consistents r the sales, do they keep trrying new prroiducts,or they remain constant? what competiond does the company has and what distinguishes them from othe? what must be the most worrying things about owning such a company? This leads the idea of looking for companies that have a strong durable economic moat. moat can be made up of brand name , geographical position or patent orr license.So its a most enjoyable idea to look into the business aspect of company that you are considering to add to your portfolio.

Dont invest for ten minutes if you are not ready to invest for ten yeas :

What would you want --- a company whose earning and sales go up like clockwork by 15 to 20 percent or morre each year.Some times the price moves ahead of earnings per share and sometimes it is other way aroubd. But overtime they move together.It is advantage to be able too find companies with such steady and strrong growth earnings.
Put together a portfolio of companies whose aggregate earrnings march upwards over the yeards, and so will be portfolio market value.As investors we focus on the medium to long ter buisness characteristics of companies.It is that drive the share price. Focusing on short term aspect of the company including both business and prrice fluctuations is foolish. Even though we focus on the long terrm the investment is more profitable if puchase the stock duing one of its drrops.

Scan thousand of stocks looking for screaming bargains:




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