Building Wealth with Rajeev.

  Stock Valuation (How to value stock) is a much-debated topic and there are two divergent views. One school of thought does look for valuation at all and is fully focused on the quality of business. Another school of thought wouldn’t buy overvalued stocks even though the quality of business is great. In my view, valuation should be the last matrix to consider like the quality of business, management is most important. However, some format of right valuation method can help you buy great businesses at favorable prices.  However, cheap valuation is not a substitute for business quality.   Many analysts and companies preach about using ONE valuation method for all kinds of companies. However, that doesn’t seem right. The company’s stage of growth is very important to price business properly.  A company in the early stages or a huge growth curve e.g. Sea ltd cant be valued the same way Apple would be valued.   Some of the most commonly used valuation matrices are the P/E ratio, PEG, EV/EBITDA,  Price/Sales, and discount cash flow methods.   However, as per genius investors, Warren Buffett and Charlie Munger, business ability to generate cash is most critical, and hence discounted cash flow works best. PEG ratio was made popular by Peter Lynch . for an exact definition of these measures, please follow https://www.investopedia.com/financial-term-dictionary-4769738  If discounted cash flow method may be a great starting point for stock valuation for matured businesses…it may not be appropriate for a fast-growing business. Price to sales (P/S ratio )is the better way to go.  Also , many investors use the P/E ratio as a benchmark and I have given examples of Amazon (Amzn), Tesla (Tsla), Sea ltd (SE) and Intel (INTC) to show that this is a misleading measure and cant help you create mega gains   So, in nutshell, for established businesses, discounted cash flow can be a good starting point and for fast-growing businesses, price to sales would be a good starting point. However, these need to be triangulated with business and management quality.   Again, valuation is the last thing to look at. it can never be a substitute for business quality.  

 This episode helps you find great stocks using free resources. This is episode 3 for stock investment beginning series.   

 Evergrande showed that all is not perfect with China businesses. China government crackdown on businesses. Businesses like Alibaba have suffered. whether it's good to invest in China. Some perspective from Emily Flippen of The Motley Fool  could help (https://www.fool.com). You can Emily's view on Cannabis at https://www.youtube.com/channel/UCbPYwSKqPEpps_MmgkmNc8w 

All hot sectors come with great gains and great fads. Is Cannabis is ONE of them? Listening to Emily Flippen of The Motley Fool (https://www.fool.com) the USA would do good for everybody. Emily is deeply involved in studying, visiting factories, shops, meeting C-level executives in the Cannabis industry, and has a very candid, informed view on Industry. Find for Find for yourself…

 Listening to this interview will save you from reading another investing book. Investing basics and wisdom pearls from an investing and finance guru who is known as 10-K divers at Twitter @10kdiver.  He beautifully decodes the invetsing concepts that can be implemeneted. 10 K diver is a value investor and a follower of Warren Buffet, Charlie Munger, and Berkshire Hathaway.  

 Outperforming market needs special strategies and mindset.  Video has some valuable lessons from Neil Bahal of Negan Capital which is a top-performing portfolio Management Service in India in last year. It generated 193% returns in 2020-2021 (till July).  Some great investing lessons that you can benefit from.

 Upstart is an upcoming AI-based consumer lending platform founded by some incredible founders.  The stock price has significantly gone up. The company is lead by an inspiring team of founders. It is small currently and is possibly destined for greatness.  Louis Stevens, a top-ranked financial blogger, and owner of the "Beating the Street" service on Seeking Alpha talks in detail about the company.  the interview was recorded on 3 September.  but remains as fresh and relevant  

 7 steps are all you need to find a GREAT stock.  here is episode 2 for the "stock investment beginner series".   Also, the episode also shows how you can use free data sources like Morning Star to your advantage. Hope you make use of it. 

 7 steps are all you need to find a GREAT stock.  here is episode 2 for the "stock investment beginner series".   Also, the episode also shows how you can use free data sources like Morning Star to your advantage. Hope you make use of it. 

 7 steps are all you need to find a GREAT stock.  here is episode 2 for the "stock investment beginner series".   Also, the episode also shows how you can use free data sources like Morning Star to your advantage. Hope you make use of it.