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Sunday, October 19, 2008

Get Lucky as an Investor amid Stock Crashes

Get Lucky as an Investor amid Stock Crashes:

before starting reading this post answer these questions to yourself :
Q1 - Do you believe in Investing rather then speculating??
Q2 - Are you an excellent analyst? - Allright strong analytical abilities would do after reading this post.

If your answers to both these questions is a 'YES' then you are the luckiest investor who will make huge profits in these bearish times in stock markets.
- The Bears are all around, future looks sceptical, everyone has moved on to a pessimistic approach from optimistic approach while speculating in share markets in just four short months, but who said that you are a speculator!!Investors are thinking about shrinking money markets and their lost money in Stock Market Crises and it's parent 'US Economy Crash'. I read yesterday that US economy has shed a whopping over $1 trillion in it's value during these tough times of financial crises where all the major indices including Dow Jones Industrial Average(DJIA), Standard and Poor(S&P), New York Stock Exchange(NYSE) are bleeding in red. Asian Economies including Indian Economy, Japanese Economy and Chinese economy are feeling the pinch when there are hardly any dollars in the market. Stock markets like BSE(Bombay Stock Exchange), NSE(National Stock Exchange) have also been engulfed in this down turn and have shed more then 50 percent of their fat to bears prevelant everywhere at this time of the year when compared to higest level reached on January 10,'s no surprise that the coming festival Season and festivals which are known world wide for their pomp ans show including Diwali and Christmas will be dull this year.the US market crash and Bankruptcy of Investment Banks like Lehman Brothers however Lehman Brothers opened under Barclays, Merill Lynch(Merill Lynch posted a whopping US$ 7.5 billion Q3 loss a few days ago), Wachovia and others have played spoilsport for earlier stock market lovers loving the sport of investing in share markets.

Visitor's who read this post also read:
-Why US Economy crashed
-BSE,DJIA, NSE, NASDAQ Closing rates
-Festivals of Lights- Diwali
-Fortune 500 Companies List

However you need not think about the bearish side before investing, According to Warren Buffet the best time to invest is during a Stock Market Crash, but remember i am talking about investing and not speculation. So it's not ideal time for short time speculators and they will not be benifited from present market.But who said that you are Speculators and not investor's!!!While choosing the company in which you want to invest in present market condition you need to be a great analyst. Ok! but atleast a good analytical brain will still be required after reading this entire post. I don't believe in people saying that future looks dull and dark. Yeah, i know it's true that this whole economic crises started from mortagage and subprime crises in real estate loans in US but could have been prevented if Investment banks and mortagage banks had not become so greedy. Failure of AIG was biggest upset, Any how that is past and i don't want that our past should have impact on our future investment plans I LIVE IN PRESENT GUYS!! and present stock markets looks very promising for investors. remember that i am talking about investors and not speculators. all they need to do is to invest by following these simple steps and use their brain power along the way.

Following points should be true for a company which you choose for investing now:

1. Make a list of Company's whose stocks you wanted to purchase a year ago(however this condition is not limited to only those company's) or before the time when bears took over from the bulls on Wall Street in US or Dalaal Street in Mumbai.

2. Note down the present stock price of these company's(Choose the company which you think are worth your thinking!).

3. Make a detail of the assets of the company (both tangible and non-tangible), also analyse the Balance Sheets of the company's , annual reports or any other financial statements made by the company in last 2 to 3 years.

Visitor's who read this post also read:
-Why US Economy crashed
-BSE,DJIA, NSE, NASDAQ Closing rates
-Festivals of Lights- Diwali
-Fortune 500 Companies List

4. Be sure of the management policies, management capabilities of the company and also don't forget to analyse the managerial activities of the company in recent years.

5. After all the analysis is done and you have made your analysis report card of the company. see the following aspects:

a. If current assets and annual reports of the company show atleast 100% difference then present market value(ie present market value is atleast half of the assets of the company) and if balance sheet of company is showing profits then it's right time to purchase that company's stock NOW!!

b. In minimum six months from your date of investement in such stock you will see that your investment has already reached double and still is growing and man no bank or other investment firm gives such sure returns in such a small interval of time.

6. However you should be sure of the managerial activities and capabilities and if possible the way of working of that company bacause it's all in hand of the management to take company to highest possible levels and remember a single decision of management can change the fortune of the company.

7.This investment approach has a success percentage of 75% in past so you are the lucky one in this global slowdown. One thing i need to emphasise that you should have a strong analytical abilities so that you always remain in top 75% of such investor's and chill you are not the first one to use this approach of investing used by world famous investor.

Kindly do post your comments about this post and was that information useful?

"Working hard to change thinking style of speculators so help me in bringing such speculators a step nearer to world class investor's"

- Himanshu Sharma

- mail me for suggestions and you can send me your views as mail and surely they will be published under your name provided they fulfill the publishing terms and conditions.

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