5 STOCK SELECTION GUIDELINES

There are more than 6,000 companies listed on our stock exchanges. Selecting companies whose equity shares you should invest in, becomes difficult due to this wide choice. To narrow down your choice, follow these 5 stock selection guidelines:

1. Know the business Warren Buffett, one of the world’s most successful investors, follows the philosophy of buying stocks of only those businesses that he understands. View Details

2. Assess the past performance All companies present details of their financial performance in their Annual Reports. In case of a company having its Initial Public Offering – IPO View Details

3. Know the promoters The promoters and management team of a company are the key people who drive its business. View Details

4. Assess the future prospects of the company Although a company may have performed well in the past, it is not necessary that it will continue performing well in the future. View Details

5. Assess the stock price As mentioned earlier, the share price of all companies continuously fluctuate on the stock markets with investors buying and selling the shares. View Details