WHY DOES THE CO EXIST?
“Never invest in a company that you can't
illustrate with a crayon
PETER LYNCH |
FORMER
FUND MANAGER WITH FIDELITY This is perhaps the starting point for any Best Investment
Planning in India, which means understanding what you are buying. Lynch
only invested in businesses that he either knew very well or could understand
very easily. This was the first key criteria of investing in any company that
he ever invested. All successful investors do rigorous stock research and
duediligence on the company before deciding whether they will invest in the
company or not. There search mainly focused on fundamental analysis, and they
do not get carried away by the euphoria of existing market noises. Most
investing greats, once they have zeroed in on any stock, would commit to it for
the long term, while regularly evaluating the company's progress and growth.
When
studying a company, investors must look at the scalability of the business
starting with one very important question: Why do they exist? For example,
legendary investor and one of the richest people on earth, Warren Buffett, did
not invest in technology companies because he did not understand them very
well. Did he perform badly? Certainly not! It is very important to decide what
you will buy, it is also extremely important to decide what you will not buy.
-Tanwir Alam.
No comments:
Post a Comment