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.
I want to invest in the stock market too. Though I know it is a bit complicated. Thank you for sharing such a helpful tip.
It is not very complicated Sharon. You would learn the ropes of the trade pretty soon.
I know very little about the stock market
It does not matter Vidocka. You can learn about the same rather quickly.
I have a good friend that rode Yahoo all the way up. He then switched to Google and finally Amazon.
he retired last year.
He must have retired a very happy man. He has worked in three great names in the digital world.
he never worked at any of them, he bought their stock at a very low level.
Interesting post…. I don’t know anything about the stock market… I had never had that kind of money to be able to mix on stock exchanges
I used to feel the same way earlier. Now I am trying my bit.
I wish you a lot of luck dear Mohan
Something that I have worked on for some time in the past to add to the experience while learning, even though it is not something I am interested in. Certainly not as easy as the theory and persuasion of online sites.
True Albert. Markets are never too rational in short term and pose challenge to our understanding. On the long-term, the markets make better sense.
I totally agree with you, Mohan.
Interesting article – P/E is always interesting in the post-startup world.
But, the real money is on hitting stocks long before they pay dividends 🙂
Yes. It is interesting and challenging at the same time.