Thursday, November 19, 2015

Most important 4 rules while buying stocks ?

Lessons from the warren buffet, below are the 4 important rules to buy Stocks :



1. A stock must be stable and understandable. Don't get into things you don't understand, the chances of failing are large. Learn about the industry, invest time in reading then money in investing.

2. A stock must have long term prospects i.e., a company should be a long term company in the market with stable growth.

3. A stock must be managed by Vigilant Leaders. Stay away from any company having lot of Debt. Learn reading balance sheets and learn accounts, to identify the company's Assets, Liabilities and finding company's value on any particular day.

4. A stock must be undervalued. Find the intrinsic value of the stock and buy the stock at that or near to that value, at which you are comfortable buying it.
Never buy stock at its peak value, always buy stock when it is undervalued.

To learn more about stocks visit http://www.warrenbuffett.com/

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