|»5 Minute Wrap Up by Equitymaster|
On This Day - 8 SEPTEMBER 2012
The 'magic formula' for winning in the stock markets
In this issue:
We recently published two special reports -
Recession Proof Stocks: A report that reveals 3 companies that could do well even if the economy slows down...
Steady Income Small Caps: Our Special Report on 3 dividend-paying small cap stocks which could multiply in 4-5 years.
While no one knows how things could turn out in the days to come, we believe it's best to prepare for all kinds of situations.
And that's the reason for suggesting that you could consider having these stocks in your portfolio.
Click here for More details, but please note that this information will be available till 11:59 PM tomorrow.
As a result most investors keep running from one site to another, from one book to another in the search of this formula. For such investors there is a book they can refer to if they wish to learn the formula of successful investing. This book is written by a gentleman named Joel Greenblatt and goes by the name of "The Little Black Book that Beats the Market". Written in simple language that is easy to understand, Mr Greenblatt takes his readers step by step on how they could form a portfolio of stocks. This portfolio construction is his secret formula for successful investing that he shares with his readers.
His formula is simple and aims at selecting stocks that deliver high returns on assets and are trading at low PE multiples. After identifying the stocks for the portfolio he even gives the way to maintain the portfolio in order to maximize returns. But if one goes through the examples he has used, one thing becomes blatantly obvious. His formula for success works only when applied in a disciplined manner over a long term. If you think that you can follow a disciplined life of investing and want to earn high returns, then you should go ahead and read this book.
If you look at way the government manages its finances, it reeks of inefficiencies and contradictions. The government, or rather the managers of the country appear to be highly incompetent. Will India see a change of government in the 2014 General Elections? Time, and your vote, will tell.
Do you think India will see a change of government in the 2014 General Elections and will that help improve the economic conditions? Do share your comments with us or post your views on our Facebook page / Google+ page.
Any move to hike petrol prices next week is likely to be blocked by the opposition party. It can even jeopardize the hike on diesel, kerosene and LPG that are bigger loss contributors. That said, with oil companies at the risk of losing around Rs 2 trillion, we wonder how long the Government will be able to dodge the bullet.
The Indian equity markets registered gains on positive global cues. The markets rallied on the last day of the week on the ECB's announcement (by 2%). At the end of the special trading session held today, the Sensex ended the week higher by 1.8%.
Amongst the other markets, barring Singapore which registered losses of 0.5%, all ended the week on a positive note led by China (up by 4%) and Germany (up by 3.5%).
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