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Starting Stock Research

HomeStarting Stock Research

Start With These Basics to Give Your Research the Right Direction

1.    Fundamental Analysis | The Fine Art of Equity Investing

 ►   What is an ‘Investment’ and why is it important to define your goal?

 ►   Fundamental Analysis vs. Technical Analysis vs. Swing or momentum trading. 

    Top-Down vs. Bottom-Up approach of Investing. Is speculation bad? 

    Some truths about the stock markets which most of you already know. Hear them again now!

 ►   Investing in fixed Income – bonds, fixed deposits, real estate vs. stock markets. 

currency markets


 2.    About the Company

When analysing any stock investment opportunity, a good starting point is to list down some basic details about the company. The article lists down things to keep in mind when starting your stock research. Draw up a roadmap with this basic description of the stock to help you recall what the company does at all time. This goes a long way in helping you stay realistic about your goals. 


3.    Start with the A’s, a simple approach to finding investment grade stocks

One of the biggest challenge which any ‘Serious’ investor faces is the difficulty of starting. It’s far too easy to start following the noise. If you follow too much of finance news, you will have easier choices like deciding between ITC, Colgate, Reliance and the 50 other well known, well talked about stocks. But how do you go beyond this sphere. 

The article explains how you can research and discover companies with less hype and more potential + Use financial metrics to your advantage. 
 


 4.    Is there a Reason? – Looking beyond Management’s Rationale

One aspect which gets frequently ignored in equity research is the assessmentof Management quality i.e. the Integrity and competence of the management. The truth is, no matter how good the business model and how booming the industry may be, if those in-charge of the business are not competent, or if they are interested in self enrichment more than in creating shareholder value, then you will not profit from your investment, period. 

The article provides a checklist of ‘Must do’ things in order to assess management quality, before making investment decisions.
 

 

About the Author

Rajat Sharma pictureRajat Sharma is a well known stock market analyst and commentator. He has covered Indian markets for over a decade and is regarded for consistently identifying early stage investment opportunities. Attorney by qualification, Rajat has done extensive work for improving corporate governance and disclosure standards.