stocks and talks

MARKET CYCLES correction means a 10% decline bear market means nearly a upto 20% decline stock market crash or recession 30 or more than 30% fall   1)first phase/euphoria stage this a stage where market is at its peak and irrational excitement drives prices to unsustainable levels during this stage everyone is happy and flying high .when you start seeing this blind happiness,you should prepare your investments for upcoming stock market crashes which brings all this euphoria back to reality   2)second phase/reckoning stage in this phase greedy and over anticipating investors or who are participated in the euphoria phase with low market knowledge gets a big catastrophic hit which tells the real truth and only the ones that know how to navigate will be able to hold their nerves and make some money this is a phase where the reality of overvaluation sets in triggering widespread panic and selloffs which results a Stock Market crash 3)third phase or recovery stage in ...

Importance of fundamental analysis mainly the fundamental analysis is used by value investors and long term investors.it method used to determine the intrinsic value of stock.this style of analysis is more usually done by mutual fund managers to dive deep in company's financials and fundamental characteristics.many retail investors think fundamentals are boring and takes more time to quantify but they are worth doing. 6  STEPS TO ANALYZE FUNDAMENTALS OF COMPANY 1)MANAGEMENT INTEGRITY 2)INDUSTRY ANALYSIS 3)PROFIT AND LOSS,BALANCE SHEET,CASH FLOW STATEMENT 4)RATIOS ANALYSIS 5)VALUATION ANALYSIS 6)CONVICTION BUILDING First i want to discuss with you about the value of 6th step conviction building which is a key differentiator between long term investor and a short term guy.After analyzing all the above 5 steps you will get a good fundamental company .but if and only if you hold it for a long period of time.when writing this blog i recalled the Warren Buffet's quotes it is now i t...

it is the financial statement that summarizes revenues,expenses,operating profit margins,taxes which are collected by government and finally net profit which the company made during the fiscal year.it clearly shows how the company is performing and tells us is the company is growing or static over a period of time.the P/L statement of company will be posted in every fiscal year. MAIN ASPECTS OF P/L STATEMENT 1)sales or revenues  the sales numbers in p/l report shows us how much amount the company is generated from its all operational activities done in the given fiscal year  2)expenses it shows the expenses of the company like expenses of manufacturing goods and expenses of advertisement or marketing activity done in the given year and many more 3)operating profit by subtracting sales with the expenses we get operating profit                               [sales-expenses] 4)other income it tells us...

PARAMETERS USED TO SELECT A MUTUAL FUND                           1 ) standard deviation it indicates the volatility of the fund and this ratio represents how much the fund is fluctuated from its average returns.generally it is 1 to 10,but for a average equity fund it is about  12-13   2)alpha ratio this indicates how a fund has performed compared to its benchmark index.if alpha is 1,it means the fund has outperformed the benchmark index by 1%and if -1,it tells us that fund has underperformed by 1% 3)beta ratio Beta measures the movement of the fund in relation to a overall market movement.if beta >1,it means the has delivered more volatility and if beta < 1 it means fund has given less volatility . generally less than 1 beta value funds are better. 4)sharpe ratio this ratio helps to understand the return of an investment compared to its risk .Generally sharpe ratio tells is the fund has given the risk adju...