Investment Scorecard

scorecard

Just learned that the updated version of ICICI Direct website has a cool new section called ‘Portfolio X-ray’. It shows the historical performance of your portfolio against Benchmark Index. I was reasonably happy with the absolute returns from my portfolio so far but never really knew how it compared against a bench mark. So was pleased to see the results … [Click to read the full article…]

This is why Stop-Loss is a good idea

stop loss

No matter how much we analyse and study, we can never eliminate the risk of not knowing something vital, or the risk of simply being wrong. Hence the stop loss. Mathematically it becomes harder and harder to recoup capital as your ‘unrealised’ losses increase. Not losing (much) is the first principle of investing. I like … [Click to read the full article…]

How to assess financial strength of a company?

(This is part 5 of the ‘Investment Research Process’ series. You can read the previous parts here: 4, 3b, 3a, 2, and 1.) How to assess financial strength of a company? Answer: by looking at three key elements: Solvency Liquidity Profitability Before we go into the details on how to do so, let us take a … [Click to read the full article…]

Investment Research – Management Quality

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Management Quality This is part 4 of the Investment Research Process series. In this post we discuss how to assess the quality of a company’s management from an Investor’s point of view. We, as investors, want the management to be good stewards of Capital. What is a “good steward of capital”? Lets look at the definition … [Click to read the full article…]

Environment Analysis – Investment Research

Porters 5 forces

Environment Analysis – Investment Research (This is part 3b of the Stock Investment Research Process series. See previous parts here- Part1, Part2, Part3a) In this part of the analysis, we are looking at a company from three different angles. First of all, we look into the actual ‘Life Cycle Stage‘ of the Industry in which our company … [Click to read the full article…]

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…]