value investing
buy business stocks
pros:
business stock is a share of the business. which helps to make more money than other stocks. when comparing index, currency, mutual funds and trust funds with business stocks like Amazon, Apple, Microsoft, and Hathway Extra.. these business shares are given high growth rates.
cons;
let’s say you decide to buy business stock, then how did you buy? you can’t buy all the business stock.
buy the share of the business, which stocks; growth rate and returns are wonderful in the last ten years period.
if you buy any business stock without considering and analysis using fundamentals. then this will leads you to lose your entire amount of investment.
when comes to investing Warren Buffet is the best investor of all time.
most people make the same mistakes. if buffet buy one stock, so they also start to buy. if buffet sell the stocks they also sell the stocks based on the news.
ask yourself one question, if you the person who wants to invest in Buffet? buffet never follow anybody in investing. he is unique. he buys stocks based on his own analysis and preference.
so when you buy business stocks by not knowing what you’re doing. then you will face a big loss in your investment.
How to Make Money in Stocks Success Stories: New and Advanced Investors Share Their Winning Secrets
do the fundamental analysis.
pros
when I talk about fundamental analysis. most of the persons confusing the technical and fundamental analysis. so before we dig into the fundamental matters. let’s look at the difference between technical and fundamental analysis.
technical analysis are analysis that helps you to analysis the market price of the stocks by using technical instruments. such as resistance and support line, Fibonacci retracement moving average extra…
the fundamental analysis is not like technical analysis. this is reading the annual and share holders report of the company. analysis real profit and loss of the company. identifying the original problem inside the industry. understand the trustworthiness of the management extra..when you do fundamental analysis, you will be more confident than before.
don’t confuse the annual report of the industry is called as 10k report of the company every year. which gives you all the information that you need about the organization.
cons;
don’t think of yourself. fundamental analysis means doing something related to check whether the business is running in profit (or) not. it takes a high level of knowledge.
many of them don’t know, how to analysis the 10k report of the company.
first of all learn how to read, find, and use the 10k report of the company.
if you don’t know about all the calculations of, income sheets, balance sheets, and cash flow statements. then you can not find the cash flow, discount cash flow, discount factor, or equity ratio extra.
we have a lot to consider when comes to investing in business stock by analysis fundamental reports. if you’re the person who wants to learn and read the 10k report of the company. then I recommend reading all the investing category articles. which is written by ruleinvesting.com (or) book.
practice to find the intrinsic value.
pros
who love to buy more business, and calculate intrinsic value for the business stocks.
if you’re the person who wants to beat the market in the long run like a warren buffet. then without knowing the calculation of intrinsic value, you can not buy any stocks at the correct value with a margin of safety.
buying at the intrinsic value of the fifty percentage discount. which leads you to get high returns with low risk. you can make a lot of money by investing in it.
most of the people didn’t take this journey in their life. value investing is the art of making money. every body can not become like a master in the stock market.
so learn to calculate the intrinsic value of the business. otherwise, you can not make money from investing in the stock market.
cons:
let’s say you know how to calculate the intrinsic value of the stocks. while doing this calculation you made some of the mistakes in it. so there will be a chance to lose your money, for the reason of buying the stock at the wrong value. so which also leads you to not buy at the margin of safety.
when you don’t buy at value. then it is not possible to beat the market at any time. so you have to make sure every time again and again after calculating the intrinsic value of the business stock.
moreover, if you’re a person who doesn’t buy business stocks at a fifty percent discount value. then you will not make any big amount of money by taking low risk. which always leads you to high risk for your invested money.
when you quit investing in the stock market. then you can not get a high level of knowledge in value investing. so love what you do in value investing.
I recommend the books to learn the calculation of intrinsic value. which will teach you every thing about this.
never sell the stocks.
when Buffet buys wonderful business stocks. Warren Buffet said that he loves to hold the stocks forever.
holding stocks for a long time when the business growth is great. which that holdings makes you rich, richer, and richer in the long run.
warren said, that who someone can’t hold stock for five minutes. they can not hold long in the investing.
don’t sell the stock without any reason, if you have a strong reason to sell your business stock. because it’s going to bankrupt (or) company growth is decreasing and much more.
cons;
you must have to sell the stock when you are in these three situation;
1, when you find the business share of stocks, that is better than what you currently bought.
2, when your business stocks organization going to fail and it’s going to bankrupt.
3, and finally when you don’t know what your doing while analysis the holding stocks.
when you sell a share of the business without any reason. then which leads you to lose your investment.
When To Sell: Inside Strategies for Stock Market Profits
so now I think you will understand the 4 rules of value investing Finally if you need to learn more about insurance, investing, taxes, and business in your low finance.
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