Archive for 'Investing Philosophy'
Investing in Early Stage Businesses
Posted on 29. Jun, 2011 by TheFreeInvestor.
As I mentioned in my post about high quality business, I am a fan of technology enabled disruptive businesses, especially in their early stages when the company is growing rapidly. Of course, early stage companies are riskier than mature companies. So, we need to keep the portfolio allocation at a level that is commensurate with our […]
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“Buy and Hold” = “Invest and Track”
Posted on 27. Mar, 2011 by TheFreeInvestor.
You might have heard of “Buy and Hold” approach to investing. In a nutshell, the approach advocates that once we analyze and invest in a stock, we should just hold and own the business for a long time and due to the compounding of returns over time and absence of panic driven trades, you will […]
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Role of Macro Factors in Investing Decision
Posted on 05. Mar, 2011 by TheFreeInvestor.
Readers of my blog might already know that I am a longterm investor and view my investments as “ownership” of a firm rather than a short term “trade” view (mostly). For most individual investors, I believe, an ownership approach has the best chance to create long term wealth. In that context, the question is how […]
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Long Term Investing vs Speculation
Posted on 19. Feb, 2011 by TheFreeInvestor.
A lot of people when they think about investing in stocks, they imagine trading stocks. So, let’s try to get the basics cleared up about what I mean when I say “investing” on this site. At a very basic level, there are two distinct ways to profit from the stock market – 1) exploit the […]
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Stock Valuation Flow Chart
Posted on 02. Feb, 2011 by TheFreeInvestor.
Even with all its shortcomings, discounted cashflow (DCF) valuation is one of the most widely used/abused stock valuation approaches. However, the plain vanilla DCF model needs a number of adjustments to be practically useful as a valuation tool. I captured the end to end process in this flow chart – (Note: Click on the image […]
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