While reading about various companies which have witnessed 100+ times returns in the past what has perplexed me is how to have an understanding to catch these companies at an early stage. What do we need to look at . What has not helped my case has been the fact that almost none of these companies pass the traditional tools that people preach on investing. Factors like huge cash generation, good ROCE’s, operating profits are something which have alluded these firms at initial stages. Among all these no matter how much I read I have not been able to pinpoint one single factor out which has helped me in my initiative. The traditional investment tools will never help in identifying such firms at an early stage. No numerical analysis will ever help. Why would we buy a firm which has a negative net worth. Has had operational losses and has no timeline on when it will be turning up a profit.

To read more Visit : https://www.elearnmarkets.com/blog/scouting-for-holy-grail-in-investing/

KITEX garments, a stock which multiplied more than 25 times in the last 5 years has clearly outperformed the broader market. It is such a rate of return which any investor would love to earn and that made me think that “Can GOKEX be the next KITEX?”

To read more Visit : https://www.elearnmarkets.com/blog/is-gokex-the-next-kitex/

The nifty P/E ratio works the same as individual stocks’ Price to Earnings Ratio. It measures the average P/E ratio of the Nifty 50 companies. It is one of the simple but very helpful buy/sell indicators for all investors who believe in buying good companies at throwaway prices.

To read more visit : https://www.elearnmarkets.com/blog/nifty-p-e-ratio-stock-market-health/

Discipline is a key to be successful in stock market. People especially who are new to the market and that too in a bull phase as of now, really become very impatient. They try to grab each and every opportunity that comes their way. As soon as any new cash is generated, it immediately gets utilized either in trading or in investing. They forget to think about cash holding. 

This is a very big problem which everyone should understand since making your investment blindly, doesn’t really make sense always. This may result in missing opportunities which market give you sometimes like the one few days back due to China crisis.

To read more Visit : https://www.elearnmarkets.com/blog/holding-cash-an-important-decision/

Warren Buffett said- 

"Chapter 8 and 20 have been the bedrock of my investing activities for more than 60 years….I suggest that all investors read those chapters and reread them every time the market has been especially strong or weak"

I totally agree with Mr. Buffett on this because chapter 8 discusses on market fluctuations while Chapter 20 is on the concept of margin of safety.

To read more visit : https://www.elearnmarkets.com/blog/the-mantra-of-warren-buffetts-success-i/

It protects the investor against any loss in case of any decline in share price.

This concept has been the bedrock of Benjamin Graham’s successful investing journey.

To read more visit : https://www.elearnmarkets.com/blog/buffetts-best-two-chapters-from-intelligent-investor-part-2/

I went to my uncle’s house during puja. One morning I woke up, I found my Uncle with a bunch of business newspapers and sitting in front of business channels. He is a businessman and also invests in equity market on a regular basis.

On being asked, why is he so concerned about the market moves on a daily basis when he is investing for long term, he replied that he has invested a lump sum money in the market and so he is looking after the news and listening to the TV analyst’s view on his invested stocks.

This is the problem with a lot of people and they have a habit of looking at stock ticker every now and then, though they are not a short term trader.

To read more visit : https://www.elearnmarkets.com/blog/i-have-stopped-reading-business-newspaper-and-watching-business-channels-have-you/

Are you associated with the stock market? If yes then you must be knowing about letters of Warren Buffett.

He has been writing letters to shareholders since fifties.

If you want to build up a storehouse of knowledge, then you should read the letters of Warren Buffett and reread them to compound your knowledge.

To read more visit : https://www.elearnmarkets.com/blog/lessons-letters-warren-buffett-part-1/

I hope you must have enjoyed reading part I of this series

There are more than 50 letters to date from Warren Buffett which itself is a warehouse of knowledge and is a good entry point for the first time readers.

I would suggest everyone to read all the letters by carefully reading each and every single word and marking them and making notes in the process.

To read more visit : https://www.elearnmarkets.com/blog/key-lessons-from-letters-of-warren-buffett-part-ii/

Here’s another set of lessons from the 2003 letters of Warren Buffett which will help you in gaining financial wisdom.

Make sure that you’re not just simply reading them but also try to inculcate them in your daily life.

To read more Visit : https://www.elearnmarkets.com/blog/key-lessons-from-letters-of-warren-buffett-part-iii/