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“The stock market is filled with individuals who know the price of everything, but the value of nothing.”

PHILLIP FISHER

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Personal Finance: Investment: Why?

Personal Finance: Investment: Why?

Why is it important that you invest?

  1. Value of money is decreasing due to inflation,
  2. Post-retirement funds if you wouldn't want to work your entire life,
  3. Build on your pre-taxable income & reduce your taxes.

23

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WARREN BUFFETT

"If you don't find a way to make money while you sleep, you will work until you die."

WARREN BUFFETT

26

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Personal Finance: Investment: Where?

Personal Finance: Investment: Where?

Where to invest?

  • Invest in True Assets - House, Gold/Silver Bonds, Equity (Stock Market), Mutual Funds, etc.

Factors to consider?

  • Investment amount, Risk tolerance, Returns required, Personal goals, etc.

Most important strategy:

  • Don't put a...

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[3/4] Personal Finance is a very crucial concept that is often ignored. This is an attempt to spread awareness related to personal finance.

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Trading in an Equity Market

Trading in an Equity Market

In the equity market, investors bid for stocks by offering a certain price, and sellers ask for a specific price. When these two prices match, a sale occurs. Often, there are many investors bidding on the same stock. When this occurs, the first investor to place the bid is the first to get the st...

What is Margin of Safety?

What is Margin of Safety?

‘Margin of safety’ is the difference between a stock price and its intrinsic worth, or value.

So if a stock is trading at  $70 in the market, and you calculate the company’s intrinsic value as $100, you have a margin of safety of  $30 (100 minus 70). In other terms, the sto...

Why Should You Value Shares?

Why Should You Value Shares?

It is important to understand that the stock's intrinsic value is not necessarily directly tied to its current market price.

The efficient market hypothesis, a theory that states that all known information is currently priced into a stock. However, this is not always the case.

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