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Stock Analysis and Evaluation

Stock market investements are rewarding if one takes the effort to look at same basic numbers and develop an understanding on performance of companies. There are simpler numbers like sales and profits one should look at. There are also, ratios like P/E, Dividend yield, P/B and Debt to equity to be looked at. Another important aspect is to study the company’s performance over a ten year time frame. This would tell us if a company is growing, declining or stable. Without looking at all these factors, one should not blindly go by the recommendation of an expert in a television program or an online article. Success comes to those who are prepared to learn and understand the functioning of the stock market. Success does not come soon and one needs to stay invested for longer time frames, say ten years at the minimum.

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