Saturday, April 18, 2009

All on Long term Investing and How to identify Multibaggers ?

When some one says Long term investment the first thing to come in mind is Patience.
Do you know an investment of Rs. 10,000 in Wipro in 1979 would be worth more than 200 Cr. today. Believe it or not but this is the fact.
So all of you all may be searching for another Wipro. But no one knows which company will be Wipro.



How to analyse the stocks for long term ? - My Six Sigmas.
  1. Check the market cap. Select a company preferably in a market cap of 3 figures. Less the market cap the more is the advancement oppurtunities.
  2. Look for an upcoming sector. eg . Telecom and Pharma. An example is China Mobile worlds largest mobile company. Every body needs a cell phone. Telecom is sure to rock.
  3. Look for resources Example - Land. Look for companies which have good amount of property. As most money made is in Property and Development.
  4. Increasing profits in balance sheet on year over year basis. A tip check for PAT.
  5. Future Order value. Example LNT is one good stock.
  6. Be Confident in your Scrip.

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