When the market is green, everyone feels like a genius.
When the market turns red, that’s when discipline is tested.
Instead of asking:
“Why is my portfolio down?”
Ask:
“Has the reason I bought these stocks changed, because there was a reason you invested in that stock.
Serious investors don't guess.
They analyze.
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Fundamental Analysis You Must Do Before Buying any Stock.
Stop buying stocks because they are trending.
Before you invest your money, check these things.
If you skip them, you're gambling.
If you check them, you're investing.
Valuation
A good company at a bad price is a bad investment.
Check:
• P/E Ratio
• PEG Ration close to 1 is fair pricing
• Compare with industry
• Compare with company's history
Don't overpay because you're excited.
Price matters.
Debt Level
Too much debt can destroy a company.
Check:
• Debt-to-Equity Ratio
• Can they comfortably pay interest?
In tough economic periods, high debt kills businesses first.
Healthy debt is good
Excess debt is dangerous
Look at: PROFITABILITY
• Net Profit Margin
• Earnings Per Share (EPS)
• Gross Profit Margin should be above 50%
• ROE above 15% (strong signal)
A company must convert sales into real profit.
Big sales with small profit indicates weak management.
Revenue Growth
If the business isn't growing, your money won't grow.
Check:
• 5 - 10 years revenue trend
• Is sales increasing consistently?
• Is growth stable or jumping randomly?
No growth = no long-term stock appreciation.
VALENTINE GIFT IDEAS FOR HER.
1. Gold
2. Land
3. Flower
4. Shares
5. Book 1 - on - 1 personal finance consultation
6. E-book ( Investment guide for Beginners)
Example:
If your investment earns 8% per year:
72 ÷ 8 = 9 years
So, your money will roughly double in 9 years.
Another one:
If the interest rate is 12%
72 ÷ 12 = 6 years
Your money doubles in about 6 years
The Rule of 72 is a quick way to estimate how long it will take your money to double at a fixed interest rate.
Here's what it says:
Divide 72 by your annual interest rate (%) to know roughly how many years it will take your money to double.