Basics of Finance/ Stock Market

  The intelligent investor- Summary Intelligent Investor- Summary This book is known as investing bible. It was written by the mentor of Warren Buffett (the greatest investor of all time), Benjamin Graham . Benjamin Graham- Intelligent Investor   Warren Buffet- Intelligent Investor The main points that Graham focusses are: ·        Be a defensive investor: Don’t go too aggressively in the market i.e. don’t invest in the market for great returns in a small period of time rather go for consistent returns. And only try to put that much money in the market that you would not need in near future(exceptions are always there). ·        The concept of Mr. Market: He says that stock market is very irrational/emotional sometimes and some stocks trade at way low or way high prices than the actual value of the stock. So try to get stocks that are near/below its actual price. This concept is also known as Value Investing. · ...

Fundamental Analysis Analysis of stock: Fundamental analysis Acc. to me it is the best way to analyze a stock for investment. It is a way to find out that a stock is undervalued or overvalued. Analyst study the financial figures of company through the balance sheet of the company, government policies related to the company/sector, analysis of industry/sector and then analyze the future aspects of the company. It is mainly done for long-term investments (acc. to me 1yr+) as it focuses on the value of the company. Fundamental Analysis vs. Technical Analysis Fundamental Analysis vs. Technical Analysis This method is very different from technical analysis. Fundamental analysis is much more reliable given that it deals mostly with the present stature of a company rather than a delusional chart which can be affected by multiple factors. Some of the Key differences are:- Fundamental Technical Focuses on value of the stock Focuses on price oft the stock ...