Yogi Knowledge Sharing Hub

  Understand the Management The future growth of a company is highly dependent on its management. They are  Board of directors,  CEO,  Chairman,  Executive or non-executive and  Independent directors  as well as the senior management team at the divisional level. Management trustworthiness is very important.  We have never succeeded in making a good deal with a bad person. There are some checkpoints that you can check to understand the quality of the management. They are One way to ascertain the management’s commitment is to gauge the percentage of ownership that individual managers have in a company. The percentage of shareholder patterns is found in the annual report of the company. Avoid boards with low ownership stakes because they are much more interested in taking their profits from the company than adding value to it. Access the management team through the compensation packages they receive. From an investor’s point of view, it is obvious t...

  Understand the numbers Check the financial or performance to confirm if the business and management have a good track record. 

  Margin of Safety (It is the best way to reduce the risk)                                         Three Important words in Investing are " Margin of Safety ". Capital preservation is the first rule in investing. Why everybody thinks we don't lose money in the stock market, in other words, we think everybody in the stock market wants to need to have good protection on their investments.  So we first understand the concept of margin of safety. The margin of safety is the core principle of  Benjamin Graham  the father of value investors. The future value of any investment is a function of its present price. The investment return is based on what we pay for that security. if we pay a higher price then we will get a lower return. No matter how careful we are, the one risk no investor can ever eliminate is the risk of being wrong. We can use the con...

  Where I got Investment Ideas &  what information do we collect to identify the company stock In the investment world,   it is very difficult for any investor how to get investment ideas. Investment ideas find in any source. Some of the sources are: 1.        Read Newspapers on daily basis-  Find company-related information, read policy articles, management interviews, etc. 2.       Read Business Magazine 3.       Research upcoming IPOs 4.       Research old IPOs last ten years.  In the above sources, we find several companies and note down the  general information and  categories of the company of stock in the present situation to the following categories  (which is Described  By Peter Lynch  ) Slow Growers Stalwarts Fast growers Cyclical Asset play Turn Around  Apply the criteria on the basis of the company stock categorie...

  👌 👌 👌 Investment Vs Speculation  👌 👌 👌 We always listen near our surroundings, investing is a game of speculation or the share market is a game of speculation. That's why people do not invest or hesitate to invest in the share market. This happens due to people don't differentiate between the words investment and speculation.   Understanding the two basic words  Investment and Speculation  is the very first step to achieving investment success in the financial world.  Financial market participants can be divided into two groups  investors and speculators . Assets and securities can often be characterized as either investments or speculations. The distinction is not clear to most people, In both groups, they can be bought and sold. Investors  think of stock as a piece of paper representing as fractional ownership of underlying businesses. They think buy and sell decisions on the basis of the current price of the stock in the stock exch...

  Mental Accounting (R elated to our emotional state ) I personally think that money is a very important part of human life without money it is very difficult to maintain human financial needs. It is very much required for daily living expenses & needs, but sometimes investors ( all humans like)  take irrational decisions about the money. Why this? In this blog we try to understand the following question in our mind: Why do we take irrational decisions related to money in their spending and investment behavior?  Why this happens and how to avoid or stop them? Let's first, understand,  What is money?  Money is nothing but a  medium of exchange and it  acts as an intermediate in the exchange process. A person holding money can easily exchange it for any commodity or service that he or she might want.  It is a human tendency to link money to a particular purpose (expenses/savings) and also take decisions, for money based on where the money comes ...

  Asset & Liability (Income/Expenses) Understanding assets and liabilities are very essential for every human being's life financial journey because a  distinguishable picture of both important terms  in your mind is prepared for you in advance when you planning to purchase a house, car land, bike, or many more that creates income for you or expenses for you, that understanding creates a big difference for your financial discussions, That's is very essential for you to understand a clear picture of  assets & liabilities. By  definition , An asset  is that which creates  an income for the owner  and a liability is that which creates  an expense for the owner .   When you buy a house you think that you should create an asset but by definition an asset it should create income for you. No, it is creating an expense in the form of mortgages, taxes, interest, maintenance of houses, etc. So common sense demands that you treat it as...