Tag Archive: Valuations


You have some money in your bank. You decided to invest some money in the common stocks. You have reached on blogthis decision as you want to have more income than if you would these funds in other way .History might be irrelevant to most of you but we compare the returns by looking at the past. It’s more fun and interesting to find some excellent companies in the market. Valuations may matter but that’s secondary to identifying the top-notch business. Here are some questions by Philip A. Fisher that will help in identifying the common stock with uncommon profits 🙂

  1. Does the company have products or services with sufficient market potential to make possible a sizable increase in sales for at least several years?
  2. Does the management have a determination to continue to develop products or processes that will still further increase total sales potentials when the growth potentials of currently attractive product lines have largely been exploited? Continue reading

I am personally inclined towards behavioral finance, as it has continuously challenged the conventional financialblog theory of rational wealth maximizers.

The irrational financial decisions, emotions and psychology have taken over the field of finance.

The very famous Aswath Damodaran says, the equity risk premium is the key to investing & valuation.

Ben Graham told once Mr. Market is there to serve you, not to guide you.

In the Taleb’s language you buy – sell or you make omelette out of it depends upon your luck, randomness, Probability, Belief, conjecture, Theory, Forecast and Anecdote.

The most crucial investing question that I have noticed is: Do you know your time frame? Continue reading

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