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Secrets of Safe Stock Investing
1. 3 March 2012
11 a.m. – 12 p.m.
Webinar will start shortly.
2. What will you learn at the end of
this Webinar?
• 9 Secrets of ‘Safe Stock
Investing’
• How MoneyWorks4me.com
can help you do this at the
click of a mouse?
3. Secret #1: Invest in a business you
understand
Why?
Because its your hard-earned money that is at stake
You will study and follow them more easily
You will be able to recognize if a company is actually a good
or a bad investment
4. Secret #2: Stick with Large caps
predominantly, avoid penny stocks
Large caps are relatively safe, established players
Small Caps are more risky, offer less liquidity
More chances of losing your entire investment
5. Secret #3: Look for companies with
a Moat
A moat is a sustainable competitive
advantage which prevents competitors
from entering a profitable industry
Helps a company earn superior returns
Can help a company maintain and grow its
profits even in tough times
Examples are a strong brand, patents,
switching costs, high capital investments
etc.
6. Secret #4: Do not invest in
companies having erratic financials
Such companies are most
likely to fall apart during bad
times
No guarantee that the
company will keep reaping
profits year after year
Look at critical parameters like
Net
Sales, EPS, BVPS, CFO, ROIC
7. Secret #5: Avoid companies with
high debt
Debt-free companies:
Financially much healthier
Have surplus cash, which can be invested in
various growth opportunities
Firms burdened with debt
Face tough times when the economy turns sour
If interest rates move high , cost of borrowing funds also rises
sharply, servicing the debt becomes increasingly expensive and it eats
into the company's profit
8. Secret #6: Look for a trustworthy
management
One of the most important but most difficult to assess
parameters
Things to look for: Competence, Transparency, Honesty,
Shareholding and Pledging of shares
AVOID companies where shares pledged by promoters are
high
9. Secret #7: Look for a ‘Margin of
Safety’
ALWAYS demand a margin of
safety or discount when you buy
stocks
Helps to Minimize Risk and protect
your capital
Further, helps you make bumper
returns
10. Secret #8: Diversify, not over
diversify!
Why?
Reduces risk, but only to a
certain extent
Protects your investment
from downfall in any one
stock/sector/industry
11. Secret #9: Always use a Stop Loss!
Limit’s your losses
Protects your Profits
Don’t have to monitor your
investments daily
13. To summarize…
Secret #1: Invest in a business you understand
Secret #2: Stick with Large caps predominantly,
avoid penny stocks
Secret #3: Look for companies with a Moat
Secret #4: Do not invest in companies having
erratic financials
14. To summarize…
Secret #5: Avoid companies with high debt
Secret #6: Look for a trustworthy management
Secret #7: Look for a ‘Margin of Safety’
Secret #8: Diversify, not over diversify!
Secret #9: Always use a Stop Loss!
15. How MoneyWorks4me.com can help
you do this at the click of a mouse?
• Unique tools help you invest in safe stocks
• 10 YEAR X-RAY
• Management X-RAY
• Company Pulse Report
• Price Calculator
• Portfolio Managers
• MoneyWorks4me Filter
16. Q & A Session
Contact Details:
Write to us at – customercare@MoneyWorks4me.com
Call us at - 91-20-67210600
Visit us at - http://www.MoneyWorks4me.com
17. You can learn more about Investing
in stocks the safest way at
http://moneyworks4me.com/stockshastra
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