Intelligent Investor

 

An Investor
who thinks beyond the market fluctuations and among all the investors, and he looks
over all the parameters with the fundamental analysis and technical analysis. An
Investor should know about the possibilities of results and should be prepared
for them both financially and psychologically. He want to benefit from changes
in market levels—certainly through an advance in the value of his stock
holdings as time goes on, and perhaps also by making purchases and sales at
advantageous prices. It is easy for us to tell you not to speculate; the hard
thing will be for you to follow this advice.

 

Thought Process of an
Intelligent Investor:

1. Intelligent
   investor will not invest in high price shares. He will trade in high value
   shares but never invests in shares with all time high prices.
2. Intelligent
   investor will not buy the shares those in Speculation.
3. Intelligent
   investor will not invest when the market is in Bull Rush. i.e. don’t buy the
   shares when all are in a rush of price hikes.
4. When
   the market is in bearish side and when no one are interested in buying the
   shares find out the stocks with best fundamentals and invest in that company.
5. An Intelligent
   investor will not invest in the shares or stocks based on rumors and fake news.
   He will investigate in to the matters to find the fact.
6. The
   companies, which are showing profits even in crisis, are the best companies to
   invest. The intelligent investor will find this type of stocks.
7. The
   intelligent investor will find out the stocks with a low Price Earnings Ratio. And
   invest in the same company.
8. Price
   earnings Ratio is arrived by dividing the Market Price of the Share by Earnings
   per Share.
9. When
   the Market is in Crisis find the company which gives the lowest Price Earnings
   Ratio and the Debt to Equity Ratio Does not exceeds 1:10.