VALUE INVESTING CONCEPT

Value Investing Concept- 

today in this article I'm going to tell you about value investing and what it means and the common misconceptions that many people have mostly beginners or amateur get obsessed with value investing that they read about some articles about Warren Buffet following value investing lot of the wealthy investors who made huge amount of returns true value investing show the only thing is he should not misunderstand because whatever Warren Buffet almost of the wealthy and successful investors have followed it's mostly miss understood by Amazon beginners so that's what this video is going to talk about about value investing and you should not go wrong because I am sure that 90% of the people there on thinking about value investing so the basic common misunderstanding that then too common misunderstanding that people have that the thing that value investing means investing in companies with lower value ratio so they think that if a company period I will get stopped by even people in the media that the company is expensive and if the company B ratio is less the thing that the company is cheap or the chief valuations so that exact the church near total misconception not something that the media does not communicate properly you are even the so-called experts appearing on TV they totally convey the wrong message to the beginner or an amateur tried it actually most likely if you see companies which are which have given exceedingly good returns and consistently good returns and evergreen companies most of them the p e ratio will be little height for example companies like ITC FMCG sector Pharma sector most of the private banking sector all of them will have a p e ratio of about 20 in fact If you a teacher interesting fact that Infossys which has which was a 300 time 3000 time multi baggar Since 1995 the p e ratio of Infossys was 60 in mm oh really 2009 period but since 2000 it is actually a given 10 times returns for the investors are shareholders of Infossys so do you think it's a mistake investing in Infossys INR 2000, 2001 actually is wrong because Infossys then way back and 2000 was actually growing at 100% or more every year in revenue and profit it was related company the management was very transparent with its shareholders and they had clear goals and till Sunday or achieving always more than what target they had set them self every year so even AP of 60 is justified if the company has strong brand value strong management genuine management especially not for the land but if u pic if you get a list of companies with low value ratio and if you get if you scan through like hundred companies of them most of the companies will be having too much of death or fraudulent company for a company where promoter stake is pledge a company which is running in losses a company which is not able to consistently so good numbers in revenues and profits still be at least 10 negative about a company when HP is trading lower so this is the first misconception that most beginners how much do they normally pay high price stocks and they look into only the low price stocks thinking that that is called value investing so that tutorial misconception the next misconception is most people beginners they tend to look into companies who share price is trading below 100 rupees so some time is it you tend to think like..

 if you buy a company of share price 10 rupees even with 1000 rupees and 1000 shares and if you feel like extremely happy that you are holding 1000 shares of particular company but in 2008 MRF tyre company that I am showroom most people know so they make the manufacturer for cars and many other automobiles so the share price of MRF watch 2000 in 2008 the most people will stay away from this.

shoes brand value India automobile sector for tyre manufacturing and they have very less Dept and the revenues and profits have consistently grown in the last 1015 years so MRF has been an exceedingly good company for long-term investors so this is another misconception this is not a misconception created by the media or anybody else it's just that the default human way of thinking that you think that I will low priced about the share price is less then you feel psychologically better holding onto like thousand share. this is the second misconception if you avoid these two misconceptions and if you look deeper into true value of long term investing then you can actually be a very good investor so for more details on long term investing and how to understand the long-term basic of stock market and how to be successful about long term investing read my upcoming article .

 I wanted to mention here is actually value investing is nothing but investing in fundamentally good companies like for Infosys or Asian Paints there many fundamentally good companies she not money then be like at least 5200 companies which are fundamentally good buying them close to 200 day levels or 50 day levels in the stock prices come down and selling at a discount compared to HP price that is value investing for me and that is much better way of investing rather than looking to invest in companies where is a management is fraudulent or this is everything wrong about a company and don't go investing in a company because a p e ratio is less or because the share price is trading at 5 rupees or 10 rupees or because you hear some news that the company is going to turn around the going to get orders don't buy on rumours don't buy an used by based on the fundamental numbers and strong performance of the company in the past and believe that the there's a will be able to deliver the same kind of growth in future as well. that's it for now I post more about the some interesting topics of investing in more article to come subscribe to a blogger to stay in touch that's it.