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Monday, July 20, 2020

5 Simple Investing Math to be a Successful Investor

                                        Hi all, When we are going to invest, we do some research work are else we get recommendations from our financial advisers, Many investors follows some key points to analyse a company to invest, there are many ways to analyse a company but the priorities based on our preference,
                    Here I am sharing, Before investing How can i analysis a company in my way, better it will help most of you, I will analyse a company by using 5 key points
Here Those are 
  1. Quality of a Company 
  2. Management Analysis
  3. Growth of the Company 
  4. Product Demand 
  5. Competitive Analysis
Above key elements which i following  to analysis a company, let me explain one by one

1.Quality of a Company  :
                                Quality analysis is a common way to analyse a company, it will include Both Fundamental and Technical Analysis, here we consider some key elements like analyzing Balance Sheet, Profit & loss a/c, Cash flow statements, Ratio analysis, last 10 years Price Trends, Dividend history etc...... By using those things we can analysis how healthy the company. 

2. Management Analysis :
                             The Management plays a key role in taking decisions in Every organisation,In Management analysis we have to check Promoters background  and how long they been in the organisation, how they are taken management decisions in past, Who are their Clients, How they are following the government Regulations like those things we have to thing while investing.
there is a famous quote called 
"Good management with bad business is better than the bad management with good business."

3.Analyze the Company Growth :
                              Growth of the company not only comes under Fundamental analysis, it also defines how long the company been in a market,what are the key decisions taken in a critical time, how much growth is increased in every year.

4.Demand & Supply of a Product :
                             The Product demand defines the future of the company,which products they are offering, how long it's been in a market,how the product is satisfying the customer and improving the product.

----------lets discuss one scenario ( Don't take it as a Recommendation)--------
             Everyone Knows the Gillette India Ltd, their main Business is produce Shave kits, Just use common sense i am asking one question to all the readers of my blog,how long the company will be in a market just prediction only lets think........
        Yes its a correct answer, shave kits is a part of life, we need it our entire life,some people will shave daily and some people will shave weekly no one won't they shave at least one time in a month
Yes they will,  it has a huge demand in market, and Then Why can't we invest in it ?
                                            --------------------------------
5. Competitors analysis :
                     In Order to survive, we should know the competitors of the business, above 4 analysis is not only enough for investment, we should know the competitors of the related business segments, How strong they are, how their products products designed, every single point is make a big difference like their economic moat, Debts to the company, Product design, Customer Satisfaction etc.....

the above mentioned things which i considered myself while investing in a particular company, let's do Analysis in which case you preferable and your are Risk barriers Depends on it....

........................................Happy Investing All...............................







                                




 
                            







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