In this video, Mr Karan Rajpal will share tips on Value investing for part-time investors: focus on intrinsic value, productive assets, sales to equity ratio, patience, risk reduction, industry evolution, savings rate, mentorship, and long-term growth strategies.
The goal of value investing is to purchase stocks at a
discount to their real worth. This entails figuring out which businesses the
market undervalues. The fundamental idea is that eventually the market will
figure out how much the company is really worth, which will raise the price of
its stock.
Comprehensive fundamental analysis is a must for value
investment. A company's financial statements, business strategy, competitive
edge, and industry prospects are all closely examined by investors. They can
calculate the company's intrinsic value—which frequently differs from the
current market price—by comprehending these variables.
In this video, he will discuss his approach is to Identifycompanies with 10 to 1000 crore market cap, Small equity base- track equity to
sales ratio, so in good times, EPS can soar. Large base of hard assets- ideally
well depreciated but still productive.
Another essential quality for value investors is patience.
It's not always simple to find cheap stocks, and it may take some time for the
market to assess an investment's actual value. As such, a long-term outlook is
crucial.
Value investing is not without its difficulties, even if it
has long been shown to be a profitable technique. Value stocks may underperform
for extended periods of time when market sentiment overwhelms fundamentals.
Furthermore, there is no set formula for success, and determining genuine value
might be subjective.
Value investing is still a well-liked strategy for many
investors looking to build long-term wealth in spite of these difficulties. In
this investment strategy, investors can improve their chances of success by
keeping an eye on the basics and adopting a patient mindset.
Your Speaker
Mr. Karan Rajpal
Your Host
Vivek Bajaj