There are about 5000 listed companies in the market and analyzing each of them is not possible. Legendary investor Charlie Munger said, “Fish Where The Fishes Are”. It means that if you have a pond with a high number of good fishes then why you will fish in a pond with a high number of rotten fishes. The same goes for the industry. If you have a good industry in which almost every company is earning a decent economic profit then why you will go for the industry with less profitable companies.
Continue readingP/E Ratio & PEG Ratio
P/E Ratio=Current Market Price / Earnings per share
The Price-Earning ratio denotes the value of the company at the current market rate. It also denotes that how many years will it take for company to pay back the the amount we paid for each share.
Continue readingBuyback Analysis
What does Buyback mean?
When Company purchase its own shares from the market from shareholders to increase the stake of remaining shareholder is called a buyback.
Continue reading