Secrets of Safe Stock Investing


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Learn how to invest into stocks safely and take the gamble out of stock investing.

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Secrets of Safe Stock Investing

  1. 1. 3 March 2012 11 a.m. – 12 p.m.Webinar will start shortly.
  2. 2. What will you learn at the end ofthis Webinar? • 9 Secrets of ‘Safe Stock Investing’ • How can help you do this at the click of a mouse?
  3. 3. 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
  4. 4. 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
  5. 5. 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.
  6. 6. 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
  7. 7. 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
  8. 8. 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
  9. 9. 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
  10. 10. 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
  11. 11. Secret #9: Always use a Stop Loss! Limit’s your losses Protects your Profits Don’t have to monitor your investments daily
  12. 12. How a trailing stop loss works?
  13. 13. 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
  14. 14. 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!
  15. 15. How 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
  16. 16. Q & A SessionContact Details:Write to us at – customercare@MoneyWorks4me.comCall us at - 91-20-67210600Visit us at -
  17. 17. You can learn more about Investing in stocks the safest way at updates join MoneyWork4me on: