What will be bottom of stock before it starts rising?

Buying at bottom and selling at peak is myth. Soon you understand this better for your investment. Maybe you have done this before but be honest with yourself this is pure luck. Even ace investors have never bought at bottom and sold at extreme peak.

So stop searching for bottom of stock prices and try to find value before buying any stocks supported by its strong fundamentals. Continuously looking for bottom is naive thing, you may miss some opportunities.

Comments

My Investments and Returns: April 2024 - March 2025

My Investments and Returns: April 2024 - March 2025 The Ground Rules Alright, folks, I’ve borrowed some of Warren Buffett’s genius ground rules from his famous letters—like borrowing your rich uncle’s best suit! I’m serving his wisdom with a sprinkle of my own goofy charm. Why? Because if you’re going to copy, go for the guy who buys companies like I buy snacks! Get ready for simple, Buffett-style tips that’ll make you feel like a money wizard—or at least fool your friends into thinking you are. Joke’s on them when you start sounding smarter than a stock market squirrel! Let’s roll! When we talk about yearly gains or losses, we mean market values—how our assets are valued at year-end compared to the start of the year. This may have little to do with realized results for tax purposes in a given year. Whether we do a good or poor job isn’t measured by whether we’re up or down for the year. Instead, it’s measured against the general performance of securities, like the S&P BSE Se...

How to interpret balance sheet of the company?

Interpreting a balance sheet of a company is important to understand the company's financial health and stability. Here are some steps to interpret a balance sheet: Understand the basic components: The balance sheet consists of three components: assets, liabilities, and equity. Assets are what the company owns or controls, such as cash, investments, property, and equipment. Liabilities are the company's obligations, such as loans, accounts payable, and taxes owed. Equity is the residual interest in the assets of the company after deducting liabilities. Analyze the liquidity position: The liquidity position of a company can be analyzed by looking at the current assets and current liabilities. Current assets are those that are expected to be converted into cash within one year, such as inventory, accounts receivable, and cash. Current liabilities are those that are due within one year, such as accounts payable and short-term loans. A company's liquidity position is strong i...

How to interpret profit and loss (P&L) statement of the company?

Understanding a company’s financial health is like reading the pulse of a business. One of the most critical tools for this is the Profit and Loss (P&L) statement, also known as the income statement. Whether you're a business owner, an investor, or simply curious about financial analysis, mastering the art of interpreting a P&L statement can unlock valuable insights into a company’s performance, profitability, and potential. In this guide, we’ll break down the P&L statement, explain its components, and share practical tips on how to analyze it effectively. By the end, you’ll be equipped to read a P&L like a pro and make informed decisions based on the numbers. What is a Profit and Loss (P&L) Statement? A Profit and Loss statement is a financial report that summarizes a company’s revenues, expenses, and profits (or losses) over a specific period, such as a quarter or a year. It’s one of the three core financial statements—alongside the balance sheet and cash flow...

Vishal Bharadwaj

Search This Blog