Friday, December 13, 2013


                             SALE     SALE  SALE  

It is a SALE you don't want to miss!

Come every January or every June, we get very excited. It is the season of SALES!
Let us face it.

As any good retail shopper, we all love good deals. Comes festive seasons, we look for good discounts on electronic goods, on cars and we live to bargain on everything from furniture to vegetables. From Sales on last season's clothes, to ones with that barely noticeable damage to Export Surpluses, we visit them all!

Getting what we want at rock bottom prices, is a sense of achievement that we cherish. The lower the price and the higher the quality, the greater is our  satisfaction. So why aren't we making the most of the BIGGEST SALE that is currently happening?

It is tendency of all human beings that when we see the SALE or DISCOUNT OFFER , we tend to or get tempted to buy that product, weather we want it or not or  weather it will be useful or Not. We First grab it and satisfy our EGO of buying something cheeper isn’t it.
Which one you ask?

Well, we are referring to the SALE that is currently going on in the Indian Equity Markets - Blue chip, solid stocks at their lowest prices.

As Warren Buffet puts it - As an investor, you must look for Good stocks at Fair Prices rather than buying Fair Stocks at a Good Price. What he means to say, is that, the golden rule for any investor should be to buy Equity when stock prices are at a low, so that you can sell them when they rise in value and book reasonable profit. However, as with any good Sale, you must focus on quality of the products or stock in this case before you buy.
So what all do you look for?

Consider a stock's history and performance record to determine its Valuation. Bear in mind, that the stock's current market value, P/E Ratio (Price to Earnings) and EPS (Earnings Per Share computed by dividing a company’s net profit by its total number of issued equity shares or paid up capital) need to also showcase strong performance for a stock to climb up from its current low in the future.

A good stock would currently be at its lowest pricing but would showcase a high return on equity by reinforcing an Investor's faith in its ability to generate profits - either now or sometime in the future.

When doing your homework, check for a stock's book value which usually is the value of a share should the Company liquidate its operations today. Compare that with the performance of the Company and its prospects for future growth - does it have adequate capital to expand operations, are any of its divisions profitable, is the management capable and stable?
As buyers or investors, it pays to remember that cost and worth do not mean the same thing. While cost is what you pay, worth is what you get. When buying Equity at historic lows, don't just consider price - Consider what will it be a few months in the future.  If by your assessment you feel, that a stock has the potential to be more in worth and has a propensity to grow, invest in it and strike a bargain, else keep looking till you find one that is.

If the current market volatility continues, don't be so worried. It is just an extended Sale. The best  strategy would be to buy as many good quality stocks as you can while diversifying your portfolio. Buy them and hold. Do not be panic at small dips or be lured with temporary highs. The Markets will stabilize but till then, stop and think before you follow the rest of the herd.  Traders / Investors with a long term horizon seldom lose money. Markets are cyclical - a low is by a high.

The Indian markets are at their attractive best, especially if you are an Investor with a long-term investment horizon. Almost all listed Companies have had their share prices corrected post the last bull run and are now at their lowest valuations till date. Analysts around the world, are advising clients to buy Indian stocks given their low and worthwhile pricing.
If You Do Not have Expertise to Select Best Quality Stock or time to Track it on Regular basis we Advise you to Select Best Mutual Fund Diversified Equity Scheme.

So what are you waiting for? Make the most of the biggest financial sale going on - TODAY!