Saturday, 16 October 2021

How to Select the Best Stock

Selecting the best stock for investment is not a simple procedure. We will have to study and analyse a few facts before we invest in some stocks. It is too vast a subject to give a clear cut idea, the analysis of the following criteria will help you in selecting the best available stocks.

* Earnings Per Share(EPS) and PE Ratio
* Book Value Per Share
* Debt Equity Ratio (Divide Total Debt by Total Equity)
* Current Ratio (Divide Current Assets by Current Liabilities)
* Profit Margin (Divide the Net Profit with Revenue)
* Return on Capital Employed and Return on Equity
* Dividend History
* Profit Growth
* Cash Flow Details
* Business Segment and Growth Potential
* Size of the Company
* Competitive Advantage In the Market
* Brand Value and Product Differentiation
* Goodwill
* Market Scenario
* Economic Strategy of the Company
* Economic Atmosphere of the Place of Main Operation of the Company
* Political Influential Factors of the Country

These are the criteria that help you in selecting the best available stock. However, it does not mean that the all of these criteria must be favorable for a stock for being eligible. You can leave out some criteria or give more weight age to the other favorable criteria over the adverse ones, depending upon the time period you are planning to held the shares or how much risk you are ready to undertake.

Quote for the day

"The secret to being successful from a trading perspective is to have an indefatigable and an undying and unquenchable thirst for information and knowledge." - Paul Tudor Jones.

Friday, 15 October 2021

Quote for the day

"A 10% decline in the market is fairly common—it happens about once a year. Investors who realize this are less likely to sell in a panic, and more likely to remain invested, benefitting from the wealthbuilding power of stocks." - Christopher Davis

Thursday, 14 October 2021

Quote for the day

"The best way to measure your investing success is not by whether you’re beating the market but by whether you’ve put in place a financial plan and a behavioral discipline that are likely to get you where you want to go." - Benjamin Graham

Wednesday, 13 October 2021

Quote for the day

"The function of economic forecasting is to make astrology look respectable." - John Kenneth Galbraith

Tuesday, 12 October 2021

Colombo Stock Exchange - Dividend History 11 + Years

Quote for the day

"In trading, you have to be defensive and aggressive at the same time. If you are not aggressive, you are not going to make money, and if you are not defensive, you are not going to keep the money." - Ray Dalio.