Business Model and Environment

[Photo credit: Lendingmemo]

Business Model and Environment Analysis (This is part 3a of the Stock Investment Research Process series.  We will discuss Business Models in this post and discuss Environment analysis in next post – part 3b) There are ‘Sprinters’  as well as ‘ Marathon runners’ among businesses. If our objective is to find someone who can run for … [Click to read the full article…]

Concentrate On the Strongest Candidate

fish in a pond

Concentrate On the Strongest Candidate (This is part 2 of the Stock Investment Research process series.) There was a small lake in a valley between three hills. During summer months, most of the water in that small lake would evaporate away and the lake would reduce to nothing more than a small pond where the lake was the deepest. And … [Click to read the full article…]

Stocks Investment Research Process

circle of competence

Not everything that can be counted counts, and not everything that counts can be counted.  – Albert Einstein Let us begin a multi-part discussion on the Investment Research Process. One of the first lessons we must learn is that the PROCESS is more important than the OUTCOME. Our long term success will rely heavily upon the soundness … [Click to read the full article…]

What is a ‘risky’ asset? Cash or Equity?

Let us first define financial ‘Risk’ as the probability of permanent loss of ‘purchasing power’. After all, the true worth of money is the amount of goods you can purchase with it. Imagine you have some money now and you are given three options to keep/invest it for the next 10 years. Here are the options … [Click to read the full article…]

Most important points about Investing in Stocks

Like the Ten commandments, there are also Ten most important points you need to remember always about Investing in Stocks. You are buying a piece of a Business when you are buying a stock. The reason why you are buying a stock is because the business is making profit and you want to benefit from the on-going … [Click to read the full article…]