Wednesday 30 May 2012

Bargain hunt for golden stocks among quality Stocks

i. Bargain Hunting:
Bargain hunting implies that a stock is worth less than it should be and is therefore undervalued. The idea is to being able to pick undervalued stocks or so called value-investing to generate superior return in the long run.

ii. Device a strategy to filter stocks:
The value investors may use many measures to pick stocks such as P/E or P/BV depending on their preference. One should device a strategy and stick to it rather than being influenced by emotions.

iii. Invest in quality stocks only:
One should always invest in stocks which have strong fundamental or that have a strong potential to grow in the long run. It is generally seen that great losses result not from buying quality stock at high price but from buying low quality stock at a price that seems good value

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