Wednesday, November 13, 2013

Whats that noise.

Switch on the TV and your are bombarded with continuous stream of information and analysis. its good to hear what going on in the outside world only if you have the sense to weed out the rubbish that gets thrown at you.
cutting out the noise and listening to what is relevant is natural ability. understadin this doesnt mean we cant develop this skill.
yess its a skill and therefore can be learnt and developed.
keep a clear objective of why you are doing this excessive. most developed investors start with the tagline, "why we shouldn't buy this stock?"
First list out all the standard measure that are easily identified (sales, net profit, EBITA, cash, debt). compare with other industry peers or other value parameters (PE ratio, profit growth, debt ration, net sales, etc). then look for anomalies


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