3 March 2012 11 a.m. – 12 p.m.Webinar will start shortly.
What will you learn at the end ofthis Webinar? • 9 Secrets of ‘Safe Stock Investing’ • How MoneyWorks4me.com can help you do this at the click of a mouse?
Secret #1: Invest in a business youunderstandWhy? Because its your hard-earned money that is at stake You will study and follow them more easily You will be able to recognize if a company is actually a good or a bad investment
Secret #2: Stick with Large capspredominantly, avoid penny stocks Large caps are relatively safe, established players Small Caps are more risky, offer less liquidity More chances of losing your entire investment
Secret #3: Look for companies witha Moat A moat is a sustainable competitive advantage which prevents competitors from entering a profitable industry Helps a company earn superior returns Can help a company maintain and grow its profits even in tough times Examples are a strong brand, patents, switching costs, high capital investments etc.
Secret #4: Do not invest incompanies having erratic financials Such companies are most likely to fall apart during bad times No guarantee that the company will keep reaping profits year after year Look at critical parameters like Net Sales, EPS, BVPS, CFO, ROIC
Secret #5: Avoid companies withhigh debt Debt-free companies: Financially much healthier Have surplus cash, which can be invested in various growth opportunities Firms burdened with debt Face tough times when the economy turns sour If interest rates move high , cost of borrowing funds also rises sharply, servicing the debt becomes increasingly expensive and it eats into the companys profit
Secret #6: Look for a trustworthymanagement One of the most important but most difficult to assess parameters Things to look for: Competence, Transparency, Honesty, Shareholding and Pledging of shares AVOID companies where shares pledged by promoters are high
Secret #7: Look for a ‘Margin ofSafety’ ALWAYS demand a margin of safety or discount when you buy stocks Helps to Minimize Risk and protect your capital Further, helps you make bumper returns
Secret #8: Diversify, not overdiversify!Why? Reduces risk, but only to a certain extent Protects your investment from downfall in any one stock/sector/industry
Secret #9: Always use a Stop Loss! Limit’s your losses Protects your Profits Don’t have to monitor your investments daily
To summarize…Secret #1: Invest in a business you understandSecret #2: Stick with Large caps predominantly,avoid penny stocksSecret #3: Look for companies with a MoatSecret #4: Do not invest in companies havingerratic financials
To summarize… Secret #5: Avoid companies with high debt Secret #6: Look for a trustworthy management Secret #7: Look for a ‘Margin of Safety’ Secret #8: Diversify, not over diversify! Secret #9: Always use a Stop Loss!
How MoneyWorks4me.com can helpyou do this at the click of a mouse?• Unique tools help you invest in safe stocks • 10 YEAR X-RAY • Management X-RAY • Company Pulse Report • Price Calculator • Portfolio Managers • MoneyWorks4me Filter
Q & A SessionContact Details:Write to us at – customercare@MoneyWorks4me.comCall us at - 91-20-67210600Visit us at - http://www.MoneyWorks4me.com
You can learn more about Investing in stocks the safest way at http://moneyworks4me.com/stockshastraFor updates join MoneyWork4me on:
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