Invest In Yourself

F ree cash flow is one of the most important topics to evaluate a company, many of you are involved in the fundamental analysis of a company, then you must have heard of this word. However, those people who are unfamiliar with the term free cash flow, this is a mystery for them. In this post, we will discuss a wide range of free cash flows and will try to know why it is important to evaluate when researching the company. Let's try to understand this with the help of the following point. This post of mine is also important for those who want to learn to evaluate the stock. 1. What is Free Cash Flow (FCF) ? Free cash flow is cash which is available to all the investors of the company. It represents the additional cash that a company is capable of generating the necessary funds for its operation or after expanding its asset base. Here you need to understand that not all income is equal to cash. If a company is earning, it does not mean that it can spend all the incom...

I started screening for a quality business, which I understand and there are long-term competitive advantages and possibilities to generate free cash flow. In my mind, I decided to focus on the automotive industry in India because it is going through a recession and has been in the discussion for bad reasons (high interest rates, inflation, low sales, etc.). It is not uncommon to find a less valuable and reasonably strong business in an area that is undergoing temporary recession or recession. I restrict my screening to the automobile sector. Also, within the automobile area, I decided to concentrate or limit on screening for commercial automotive manufacturer. My screening process within the commercial vehicle manufacturer company area had been narrowed to those companies who have earned a return on equity of 15% higher, with internal accretion (lower credit level and negligible equity dilution) And the sound has increased through working capital management. The scre...

T hese days, despite the price of the good stock, there is no doubt that we are going through one of the most indefinite times to invest. Before discussing the rules of investing in the stock, let me clarify that I work and follow these rules, I am not asking you to follow them, my purpose is to tell you about them. 1. I'm not afraid of the fall. The fall in the stock market is near the corner, but no one can predict the decline, No one can tell this, when it will happen and how much hurt it will be. I do not sit in the hope that the market will fall, but I keep myself prepared for it. 2. I prefer to buy bad stock, not bad business. If I choose a bad business and hope to earn from it, then it will be wrong , Even if I buy it cheaply. I consider that business as good, whose management is honest and  well behaved in the past, whose products are well-known and have ability reach  to every person. Businesses whose operations have been operating for the past 20...

I n the Indian stock market, a person can make direct equity investment which can be a rewarding investment for him, as well as the risk of loss in direct equity investment is very high. People who maintain a balance in risk and return dealing with in direct equity investment, they are the winners. But how risk and reward can be balanced, the risk associated with direct equity investment comes with the complexity of information. When buying a stock, the most important criteria for evaluating a company is Return On equity. How important is this parameter, a good investor does not invest without its help, millions of people in India invest in stocks, but only a few people know how to read the balance sheet. Apart from direct investment, mutual funds are such products that have been created for the common man. In direct equity, timing the market is very important, but timing market is not easy. The correct time of market is an essential trait that should be done while dealing with...

W hen we need extra money for our special needs, we take money by mortgaging one of our precious things. Similarly, in the stock market when the company needs extra funds their promoters pledged their shares to fulfil business operation.   Before investing in a company, checking the number of shares pledged by the promoters is very important factor ,which most investors ignored. In a company high pledged of shares may be a cause of concern for investors. We will discuss here that what is pledging of shares and what are its disadvantage to the shareholders? 1. What is pledging of shares ? In simple words, the pledging of shares means that borrowing money against the shares available that one holds. This is a way in which the promoters are able to obtain loans by pledging their shares for their personal or business operation. Pledging of shares can be used for various needs, such as to meet the requirements of money, for new acquisitions, etc. 2. Why ...

T he stock market looks at a golden spot to make money. There are  popular stories of many investors in India and abroad, who have made good money by investing in the stock market. However, there are some bitter truths related to the stock market, on which market analysts and investors refrain from discussing. In this post I am going to discuss with you about the ugly truth associated with the stock market. 1.Even the blue chip stocks can’t give guaranteed return. Even 'bluest of blue chips' can 'perform less' and 'not' gives a return for a sustained long term period of time. There is risk involved in any stock you invest in, no matter how safe it can be. There are many reasons which can affect the company's share price. For example, domestic and global, company fundamentals, interest rates, social and political reasons, and other reasons too. If someone is promising to give you return with guarantees then either he is not experienced or he is ly...