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A Stock picking guide
by StockAxis
How to select
stocks foryour
Portfolio
The success of each investor depends
on the crucial & significant decisions
they make in the market.
An important principle is to
acquire the skill of choosing
which stocks to invest in.
Most of the investors lose
money because they do
not do their research first &
rely on their brokers/
friends to advise them
If you want to smartly select shares
for consistent returns, then you are
at the right place!
Here are a few important
pointers on how to pick
stocks that can grow
your wealth.
01
01
Does the company have
Good Fundamentals?
If the company is not fundamentally
strong, then there is no need to
learn more about it.
Only when you are confident, you
can start researching the company
further.
Earnings Per
Share (EPS)
Increasing for
the last 4years
Debt toEquity
Ratio
Should be less than 1
(Preferably debt<0.5 orZero)
Return on
Equity (ROE)
Should be greaterthan
1
5
%(Last 3 YrsAvg)
You need to look into the financials &
the ratios of the company!
02
Do You Understand the
Products/Services offered
by the Company?
After filtering the companies, you
need to investigate the company’s
business.
Understand the company’sbusiness
model and learn about its
products and services.
It’simportant that the company is
easy to understand and has a fairly
straightforward businessmodel.
If you can understand the stock,
you can easily make an informed
decision whether to buy, hold or
sell the stock at any time.
03
Will people still be using
this Product/Service in
15-20 years from now?
Always look for a company with a
long life.Such companies havehuge
growth potential and the power of
compounding applies to such
companies.
Avoid investing in companies
having a life of just a few years.
04
Does the Company Have
a MOAT?
The concept of ‘MOAT’was
popularized by Mr. Warren Buffet.
Amoat isa deep, wide ditch of water
surrounding a castle. Some stocks
have a similar moat around them.
That’s why it’s really tough for its
competitors to defeat them in its
sector.
Find the unique selling point of the
company. Learn what thiscompany
isdoing that its competitors arenot
doing.
05
Does the Company has a
Big Debt?
Big debts in a company are the
same as a big hole in the boat. If
the hole in the boat isnot filled
soon, then it willsink!
Avoid investing in companies with
big debts. Also, avoid companies in
the banking sector with hugeNP
As.
06
Is the Company’s
Management Efficient
and Qualified?
The management is the soul of the
company.
Good management can prosper
the company to new heights. On
the other hand, badmanagement
can lead to the downfall of the
company.
Find out who is running the
company!
Go through the Vision, Mission,and
Value statement of thecompany.
Check who it’s CEO,CFO, MD,and
CIO are along with their
qualifications and pastexperience.
07
Is the Company constantly
in the news and overly
popular?
The stock market is based on the
sentiments of the people.
Overly popular stocks that are
consistently in news affect the
expectations and decisions of
the public.
That’s why try to avoid buying
stocks of such companies for easy
returns.
The hot stocks are highly
subjected to market volatility and
the boring stocks are the ones
that give the best returns.
A FewOther
Quick Tips!
Past results do
not guarantee
future
performance
Invest in Mid-cap
& Small-cap
companies for
higher returns
Cheap isn’t
always good,
and expensive
isn’t always bad
TIP
01
TIP
02
TIP
03
Happy
Investing!
Lastly,Trust yourself when
you have donethe research
necessary to make a good
decision and when theprice
looks good, takeit!

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How to select stocks | StockAxis | Long term stock investment | Stock selection strategy

  • 1. A Stock picking guide by StockAxis How to select stocks foryour Portfolio
  • 2. The success of each investor depends on the crucial & significant decisions they make in the market.
  • 3. An important principle is to acquire the skill of choosing which stocks to invest in.
  • 4. Most of the investors lose money because they do not do their research first & rely on their brokers/ friends to advise them
  • 5. If you want to smartly select shares for consistent returns, then you are at the right place!
  • 6. Here are a few important pointers on how to pick stocks that can grow your wealth. 01
  • 7. 01 Does the company have Good Fundamentals?
  • 8. If the company is not fundamentally strong, then there is no need to learn more about it. Only when you are confident, you can start researching the company further.
  • 9. Earnings Per Share (EPS) Increasing for the last 4years Debt toEquity Ratio Should be less than 1 (Preferably debt<0.5 orZero) Return on Equity (ROE) Should be greaterthan 1 5 %(Last 3 YrsAvg) You need to look into the financials & the ratios of the company!
  • 10. 02 Do You Understand the Products/Services offered by the Company?
  • 11. After filtering the companies, you need to investigate the company’s business. Understand the company’sbusiness model and learn about its products and services. It’simportant that the company is easy to understand and has a fairly straightforward businessmodel.
  • 12. If you can understand the stock, you can easily make an informed decision whether to buy, hold or sell the stock at any time.
  • 13. 03 Will people still be using this Product/Service in 15-20 years from now?
  • 14. Always look for a company with a long life.Such companies havehuge growth potential and the power of compounding applies to such companies. Avoid investing in companies having a life of just a few years.
  • 15. 04 Does the Company Have a MOAT?
  • 16. The concept of ‘MOAT’was popularized by Mr. Warren Buffet. Amoat isa deep, wide ditch of water surrounding a castle. Some stocks have a similar moat around them. That’s why it’s really tough for its competitors to defeat them in its sector.
  • 17. Find the unique selling point of the company. Learn what thiscompany isdoing that its competitors arenot doing.
  • 18. 05 Does the Company has a Big Debt?
  • 19. Big debts in a company are the same as a big hole in the boat. If the hole in the boat isnot filled soon, then it willsink! Avoid investing in companies with big debts. Also, avoid companies in the banking sector with hugeNP As.
  • 20. 06 Is the Company’s Management Efficient and Qualified?
  • 21. The management is the soul of the company. Good management can prosper the company to new heights. On the other hand, badmanagement can lead to the downfall of the company.
  • 22. Find out who is running the company! Go through the Vision, Mission,and Value statement of thecompany. Check who it’s CEO,CFO, MD,and CIO are along with their qualifications and pastexperience.
  • 23. 07 Is the Company constantly in the news and overly popular?
  • 24. The stock market is based on the sentiments of the people. Overly popular stocks that are consistently in news affect the expectations and decisions of the public.
  • 25. That’s why try to avoid buying stocks of such companies for easy returns. The hot stocks are highly subjected to market volatility and the boring stocks are the ones that give the best returns.
  • 27. Past results do not guarantee future performance Invest in Mid-cap & Small-cap companies for higher returns Cheap isn’t always good, and expensive isn’t always bad TIP 01 TIP 02 TIP 03
  • 28. Happy Investing! Lastly,Trust yourself when you have donethe research necessary to make a good decision and when theprice looks good, takeit!