Welcome to the Art of Wise Investing!
Business is the main instrument for investment. Either in a private company or public stocks, even bonds, commodities, and currencies, every investment means are closely related to businesses. That said, we believe business analysis plays an important part in investment realms. However, currently, there are hundreds, if not thousands, of ways to analyse a business. From the most conservative to the most aggressive ones—which by the way have caused several financial crashes within the last century—we are offered so many alternatives in evaluating a business. Some owners prefer to do things their own way for their own excitement, while others may be very strict to apply their religious belief in their businesses. Oddly enough, an illogical, and even mystical ways are widely accepted in making business or investment decision. To make things more complicated, as a human being, our minds are constantly influenced by many things that are inevitable like the news, family members' opinion, or even that man sitting on the front row coughing without wearing a mask. Thus, even the greatest logical leaders must occasionally fall into such a dynamic rhythm of the mind and suddenly, business analysis is not just a matter of logic but also psychology.
The mental is indeed an amazing thing. It could become our greatest ally or our fiercest nightmare depending on how wise we use it. Similarly, this also applies well within the investment realm. A good investment can still be devastating for uncommitted or mentally unprepared investors. That said, it turns out that investing is more than just a matter of making the right decisions or valuations, it is a continuous habit that needs to be nurtured from time to time. Moreover, when one fails to realise this and perceives that he is investing while actually speculating, things can get worse rather quickly and easily—yet somehow nowadays these two words are ironically considered as synonyms (check it out on Google!).
An 'investment' decision, especially in stocks, can either be made by using logically sound reasons or simply by getting influenced by the market which emphasizes mainly on future prospects and then making judgements without even looking at the companies' demonstrated financial performance, a.k.a. speculating. While both of these are very common in practice, our definition of investment is pretty clearly inclined towards the former. Mainly inspired by the notorious super investor, Mr Benjamin Graham (1894-1976), for us, an investment should meet some sound logical basis requirements that can justify its conservative value and provide adequate capital safety with some comparable satisfactory return. Sure, speculating in the market may generate a handsome amount of profits quickly enough, but speculations are speculations. They are still not an investment, we'd say, but rather resembling a simply fortunate gamble. And just like in most gambling story, it usually ends up with an unfavourable outcome at the end of the day (see Jesse Lauriston Livermore's biography for an extreme case). Therefore, be sure to be aware of what you're into and be wary of the consequences of such a manner: it tends to become very addictive as well as destructive over time. Alas, we believe that it is much wiser to stay away from such operation and start to find out the 'real' value of the stocks before you buy them. Now that is our version of investment.
Unsurprisingly, problems soon turn up as we're about to begin analysing the financial numbers: where to start, what to look for, and just, how? Sadly, we have to admit that financial analysis is probably not meant for everyone. It can be boring, difficult, stressful, and even seemingly daunting to be performed, even for the experienced senior accountants and analysts. Hence, here is where we can offer some aid. Our solution for you is by providing analyses of the stocks' value, which are also based on Graham's idea, in a simple and hopefully clear and understandable article-styled basis so that you can understand better about the facts of the company which stock you are buying before you actually buy it. The good news is, it is not free! Which means we will be most likely to stick around for quite some time and you can repeatedly access the full information of the stocks by logging in using your Access ID, obtainable here or else you will see this message below:
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