How to Avoid Loss and Earn Consistently in the Stock Market: An Easy-To-Understand and Practical Guide for Every Investor

by Prasenjit Paul

debt level decreases rapidly with increasing ROE and interest coverage ratio.

world’s best companies may not be a good investment bet if you purchase at a wrong price.

If an asset-light business is growing faster than its peers and is generating huge cash flow with good return ratios then be prepared to accept higher P.E multiples.

Companies whose ROE and P.B ratio don’t go hand in hand should be analysed with extra care.

Value investing is not about finding low P.E stocks.

You can’t compromise on price to get good quality. So, why you should hesitate when it comes to equity investing?

sell it whenever the growth slows down. Don’t put a second thought. Don’t rate the same stock as “value buy”,

“Make sure to write down the purchase reasons that would immensely help you in selling decision.”

“Don’t invest like a trader and don’t trade like an investor!”

“Never ever calculate profit/loss as long as you are holding a stock. Calculate it only after selling.”

“How many times a stock will move up in future depends on earnings growth, not on how many times it moved during the recent past.”

“Avoid investing in stocks that suffered 60%+ correction from the recent peak.”

“Avoid stocks having a market capitalization of less than 300 crores with promoter’s holding less than 20% stake”

“Stocks touching 52-week high are a much better candidate to initiate further research for investment while stocks touching 52-week low regularly should be treated with caution”