Research Reports

Following is the approach we follow with regards to identifying investment securities, and research reports.

Security Analysis as many of the investors like to think of it not just valuations and the stock price, or price of any security of a company . It has much more to do with many other factors like economic analysis , understanding the industry structure & business, competitors , threats to the industry , opportunities within the industry and specifically to the company , checking financial statements etc. 

In today's world , everyone wants to get rich and enjoy the money and the material it can buy . But they do not wish to work hard for it , instead and infact they wish to be told by their friends , relatives , investment advisor which specific stocks to invest into to wake up the next morning a million heavy into their bank accounts . 

But in the process we forget the most important first lesson ever taught to us : There is no free lunch in this world . And why would any of the above mentioned advice you ? How legitimate their advice is ? And if it is why don't they just take the money from you and invest it themselves , and make some for themselves as  well instead ?

So if investment is not all this , then what is it ? And how can one be a successful investor in the market ? Now that is a trivial question , and we shall try answering it the same way . Warren Buffett sums it up really well " If you do not have the time and the skill to search for good stocks and investments , its better to invest in some index fund type of an investment " . But , what about the people who do have enough time and wish to develop the skill ? 

Well for people who do have enough time one of the most important thing is to develop an investment philosophy . To understand the fact that jumping onto valuations is the stupidest thing to do , infact it is the last step or the second last step in the whole process of finding and or analyzing a company .

We shall divide the Investment Philosophy into three different parts , and describe each briefly into our discussion . 

1) Understanding

2) Checking 

3) Valuing

Understanding :  entails the complete understanding of what one wishes to invest into , starts from Industry , Company , Competitors , Threats , Opportunities , A specific advantage a company enjoys , laws , rules and regulations within the company . Industry Statistics , company averages , statistics , median , and all other factors that would help one to clearly know a company's position within in the industry , and its standing . 

Checking or a Check : Checking the Financial Statements provided by the company , and making sure they are true and represents the company fairly . If there are any differences they needed to be adjusted depending onto the accounting policies . Companies with major divergences shall be just rejected and analysis stopped at the very moment . 

Valuing  : Now that we know the financial statements and have a perfect understanding of the company's standings within the industry , as well its quantitative analysis . We can now arrive at a fair valuation of the business . Now the last step in the process is to compare it against the market capitalization or the stock price /price of the security in the market at the moment . 

If it is selling at a discount to the fair estimated value it is a good buy , otherwise its good to stay as away and clear .

Security Analysis is a whole process , and thus an objective and a step wise process of selecting , analyzing and valuing securities . 

Stay tuned for other articles onto the website , and if you have any queries or like any topics please let us know .

A few of the Articles listed below are the ones we strongly suggest others to read.

1) An Investment Checklist :- Charlie Munger.
2) Understanding the Difference Between Accounting and Economic Goodwill :- Warren Buffett.
3) Mirror Mirror on the Wall , When is the Next AIG to Fall :- Dr.Marc Faber.
4) Sector Rotation & Returns from Different Assets Classes in the Past Decade.

Research Reports.