5 rules of successful stock investing. Has it ever happened to you that despite all the efforts, taking utmost care in picking stocks and careful analysis, you have still lost money in the market? If you listen to Pat Dorsey, Founder of Morningstar, it’s mostly because you have not followed the rules of successful stock […]
What is a Value Trap?
Have you ever been in a situation where you found a stock that looks like a great bargain but later you realize that what looked like a great deal turned out to be a complete failure? Well, you are not alone. Investors often fall prey to something called value trap, when they go hunting for […]
Price is what you pay, value is what you get
Price is what you pay, value is what you get. The above quote of Warren Buffett is widely used, but very few of us really understand the true meaning of it. Majority of investors look at the price as indicator of whether a stock is cheap or expensive, for example, a stock trading at Rs.10 […]
Circle of Competence: What is it? How to find it?
Circle of competence is an age old concept of value investing, popularized by Warren Buffett. The first time concept of circle of competence gained popularity was when Warren Buffett in his Berkshire Hathaway letter to shareholders wrote: “You don’t have to be an expert on every company, or even many. You only have to be […]
Durable Competitive Advantage: What is it?How to achieve it?
Durable Competitive Advantage, is a fundamental concept of value investing. Investors like Warren Buffett, Peter Lynch and many more have always advocated for the importance of durable competitive advantage as one of the most crucial factor that determines the long term success, sustainability and longevity of a business. As Warren Buffett says: In this post […]