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Whatever U buy NOW, ensure its Quality!
by TruthSeeker Tue Feb 06, 2018 12:16 am
I finally read the book last week "The Intelligent Investor" - by Benjamin Graham (excluding the chapters on Bonds), a book proclaimed to be the best ever in investing by Warren Buffett.
The investment principle is simple:
1. Buy quality stocks ONLY. What constitutes quality? Lets say, you own a company. How do U determine if your company is doing profits, good profits? When U file taxes, you tell how much income this business generated, and what the expenses were. Cash Flow. Be it your business, or you yourself. A growing cash flow? better. Part of this cash flow paid as dividends? Better. Growing dividends? Even better.
2. Buy only Blue Chips. When their prices are down. Another opportunity might be around the corner. Once bought, maybe in chunks i.e. do not buy all at once, but in chunks, and then just keep these stocks for the long run. Forget about them.
3. I have personally never invested this way. Though my ESPP stocks in a company I worked for in late 90s, have grown 15 times over, because I just left them alone. If they were in my normal trading account, I would have taken 200% profit, and sold them.
Either be a trader, or an investor.
No ONE beats an investor over 20 years.
The investment principle is simple:
1. Buy quality stocks ONLY. What constitutes quality? Lets say, you own a company. How do U determine if your company is doing profits, good profits? When U file taxes, you tell how much income this business generated, and what the expenses were. Cash Flow. Be it your business, or you yourself. A growing cash flow? better. Part of this cash flow paid as dividends? Better. Growing dividends? Even better.
2. Buy only Blue Chips. When their prices are down. Another opportunity might be around the corner. Once bought, maybe in chunks i.e. do not buy all at once, but in chunks, and then just keep these stocks for the long run. Forget about them.
3. I have personally never invested this way. Though my ESPP stocks in a company I worked for in late 90s, have grown 15 times over, because I just left them alone. If they were in my normal trading account, I would have taken 200% profit, and sold them.
Either be a trader, or an investor.
No ONE beats an investor over 20 years.
TruthSeeker- Posts : 1508
Join date : 2012-08-18
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