Published: 27 Jun, 2012 02:02 PT
However you need not think about the bearish side before investing, According to Warren Buffet the best time to invest is during a Stock Market Crash, but remember i am talking about investing and not speculation. So it's not ideal time for short time speculators and they will not be benifited from present market.But who said that you are Speculators and not investor's!!!While choosing the company in which you want to invest in present market condition you need to be a great analyst. Ok! but atleast a good analytical brain will still be required after reading this entire post. I don't believe in people saying that future looks dull and dark. Yeah, i know it's true that this whole economic crises started from mortagage and subprime crises in real estate loans in US but could have been prevented if Investment banks and mortagage banks had not become so greedy. Failure of AIG was biggest upset, Any how that is past and i don't want that our past should have impact on our future investment plans I LIVE IN PRESENT GUYS!! and present stock markets looks very promising for investors. remember that i am talking about investors and not speculators. all they need to do is to invest by following these simple steps and use their brain power along the way.
Following points should be true for a company which you choose for investing now:
1. Make a list of Company's whose stocks you wanted to purchase a year ago(however this condition is not limited to only those company's) or before the time when bears took over from the bulls on Wall Street in US or Dalaal Street in Mumbai.
2. Note down the present stock price of these company's(Choose the company which you think are worth your thinking!).
3. Make a detail of the assets of the company (both tangible and non-tangible), also analyse the Balance Sheets of the company's , annual reports or any other financial statements made by the company in last 2 to 3 years.
4. Be sure of the management policies, management capabilities of the company and also don't forget to analyse the managerial activities of the company in recent years.
5. After all the analysis is done and you have made your analysis report card of the company. see the following aspects:
a. If current assets and annual reports of the company show atleast 100% difference then present market value(ie present market value is atleast half of the assets of the company) and if balance sheet of company is showing profits then it's right time to purchase that company's stock NOW!!
b. In minimum six months from your date of investement in such stock you will see that your investment has already reached double and still is growing and man no bank or other investment firm gives such sure returns in such a small interval of time.
6. However you should be sure of the managerial activities and capabilities and if possible the way of working of that company bacause it's all in hand of the management to take company to highest possible levels and remember a single decision of management can change the fortune of the company.
7.This investment approach has a success percentage of 75% in past so you are the lucky one in this global slowdown. One thing i need to emphasise that you should have a strong analytical abilities so that you always remain in top 75% of such investor's and chill you are not the first one to use this approach of investing used by world famous investor.
In last we summurize that if you have correct report of share market/stock market then you can make a handy profit in Share Market. Just follow the real Stock Tips