Following points should be true for a company which you choose for investing now:
1. Make a list of Company’s whose stocks you wanted to purchase a year ago(however this condition is not limited to only those company’s) or before the time when bears took over from the bulls on Wall Street in US or Dalaal Street in Mumbai.
2. Note down the present stock price of these company’s(Choose the company which you think are worth your thinking!).
3. Make a detail of the assets of the company (both tangible and non-tangible), also analyse the Balance Sheets of the company’s , annual reports or any other financial statements made by the company in last 2 to 3 years.
4. Be sure of the management policies, management capabilities of the company and also don’t forget to analyse the managerial activities of the company in recent years.
5. After all the analysis is done and you have made your analysis report card of the company. see the following aspects:
a. If current assets and annual reports of the company show atleast 100% difference then present market value(ie present market value is atleast half of the assets of the company) and if balance sheet of company is showing profits then it’s right time to purchase that company’s stock NOW!!
b. In minimum six months from your date of investement in such stock you will see that your investment has already reached double and still is growing and man no bank or other investment firm gives such sure returns in such a small interval of time.
6. However you should be sure of the managerial activities and capabilities and if possible the way of working of that company bacause it’s all in hand of the management to take company to highest possible levels and remember a single decision of management can change the fortune of the company.
7.This investment approach has a success percentage of 75% in past so you are the lucky one in this global slowdown. One thing i need to emphasise that you should have a strong analytical abilities so that you always remain in top 75% of such investor’s and chill you are not the first one to use this approach of investing used by world famous investor.
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