The purpose of writing this piece is to highlight, “how can I be of help to you“. I can help you to analyse stocks.
But before I tell you more about it, allow me to explain few things about my blog, like what is getmoneyrich all about, and it’s philosophies. This will help you to view my “offered help” in a perspective.
Getmoneyrich blog is not about “get rich quick” ideas. It talks only about “long term investment” and “personal finance” strategies. I am an expert on these subjects? Far from it.
But perhaps what I provide is in several ways better than what is available around. Why I say so? Because what I blog about are my self-learnings. I read, I practice, and I learn. My blogs in many ways reflect my experience. What I am learning and experiencing?
I am passionate about achieving financial independence, and spreading the message about it. My route to financial independence is by building a sufficiently big “income generating asset portfolio“. The passive income generated from an asset portfolio can ultimately lead to financial independence. But there are control points here. What is it?
- Size of asset portfolio.
- Quality of assets in the portfolio.
These two control makes asset building an art, and hence not everyone can do it on their own. This art must be learnt. But before learning it, there is one more essential step, “realisation”.
Unless we realise that “learning the art of asset building is worth it”, we will not do it, right?
The above two “control points” are the ones on which 99% of my blogs focus on. Most of my blogs are about stocks, financial plan, mutual funds, being debt free, ways to invest etc. All these topics can help its readers to do the following:
- Identify quality assets.
- Keep buying such assets till infinity.
Identification of quality assets is a key in building an asset portfolio. This is where I can be of some assistance for you.
One of my favourite asset class is “equity“. I love investing in equity because of its potential to earn higher returns in long term.
But investing in equity (stocks) is risky, right. This is why, for most of my readers who wants to play safe, I suggest them to take the mutual fund route.
But for more enterprising readers who are ready to take more risks, investing directly in stocks looks very inviting. But how to go about investing in stocks?
As stocks are risky, hence blindly investing in it will invite more risks. Hence it is always better to invest cautiously in “direct stocks”. What I mean by investing cautiously?
- Do stock analysis.
- Estimate its intrinsic value.
- Self-judge if the stock is undervalued or overvalued.
How to do it?
You can use my “stock analysis worksheet”. What it can do?
– True Value: It can help you to estimate “intrinsic value” of stocks.
– Overall View: It assigns an “overall rating” for stocks.
The overall rating is based on “companies financial health” and stocks current “price valuation”.
This is a simple MS Excel based worksheet, which one can use to self-analyse stocks. I have prepared this worksheet based on my learnings in stocks from the past. I does a reasonably detailed evaluation of stocks.
Why I prepared this worksheet?
I have been studying and investing in stocks since last 10+ years for myself. But whenever I wanted to buy stocks, I always faced a big limitation. What was it? How to analyse stocks?
Financial ratios alone use to provide very less insights. I wanted a more detailed review of stocks. But the big hurdle was, reading and comprehending financial reports of companies.
Back in those days, I could not find even one reliable tool related to fundamental analysis of stocks. What ever was available were either too cumbersome or complicated to use.
Hence I started coding a MS Excel based tool for myself in year 2015. I used it for almost 1 year and then in 2016 it was released it for my readers. Since then, more than dozen updates on this worksheet has been released.