Thursday, August 1, 2013

My Key Points While Investing based on Value Investing Method

My Key Points While Investing based on Value Investing Method

Quality of the Business and Growth Prospectus

High Entry Barriers with Predictable Profits

Avoid Start Up and Technological Breakthrough Companies

Choose single/focused business companies

No Investments in commodities/cyclical nature Companies

Zero or less Government/Political interference

High Return On capital Employed

Invest in low capital intensity business

Good Cash flow that enable future expansion and dividend payouts

Zero Debt (or batter use of debt if any)

Invest when available at ridicules or throwaway Price compare to intrinsic value of the business

Management should be honest and competent with transparent policies and batter accounting practices.

There may be many other points which may help while investing and as and when I will find will update on my list, by reading above factors you may think I am bit more conservative, yes I am because investing is like owning a business and if I was business person then would have find business which clears above criteria and I believe in slow and steady wins the race like turtles.

Over a period of time I have understand that it is batter to trade High Growth Companies via Trend Following methods so when investing in High growth companies or companies doesn’t pass the above criteria I trade based on trend following or based on other technical analysis theory .

If you like the article or have any suggestions or any query do reply me.

This is only for information and educational and information purpose, please consult your financial adviser before trading or investing.

Thanks and Regards

Nishesh Jani.

Professional Trader & Investor.

www.zerodelta.in

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