This piece is the first in what is going to be an interesting series of discussions on stock selection and wealth creation by value investing.
I am going to keep these short so as not to tax the grey cells too much. And of course, there shall be contributions, comments and queries by all.
The stock market awareness survey carried out earlier tells us in general that though most of us have dabbled in stocks and mutual funds some time or other, more understanding and action on the following is required for serious investment in stocks.
1) The concept of value investing
2) Detailed financial analysis for stocks selection
3) Risk assessment and mitigation
4) Insurance & Hedging
5) Regular monitoring
Understanding these and taking necessary actions requires time to be devoted which is always in short supply. That is why most people prefer to have a consultant for their investments and keep following him blindly, at times not even bothering to look at his monthly emails and statements.
However, my idea of starting this group is to make each of us competent enough to understand the intricacies to be able to monitor and question our investment consultant, if we have one, and finally get rid of him if possible. Some of us (including myself) can provide you with “STOCK TIPS” right away but I will refrain from this till reasonable knowledge base is developed to understand the investment rationale and associated risks with those tips or recommendations. I hope I am able to make myself clear on this.
Item number 2 and 3 of the above list are going to take time to understand and digest. Increasing familiarity with these will make things easier.
Will start with item one of the list in the next issue.
Happy investing
bhushan oke
bhushanoke@hotmail.com
bhushan's blog 