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How you can profit from the stock market bible!

by , 28 August 2013

There is an old style of investing, so lucrative; it's still in use today... It's a method used the by some of the world's greatest investors like Benjamin Graham and Warren Buffett. It's so valuable that it is known as the 'the stock market bible'!The thing is, you don't need to be a financial expert to adopt the techniques in this book! In fact, I believe, anyone can use the same strategies to earn a fortune... All you need to do is know what these masters look for!
Adopt the style of the masters to start profiting!
 
These masters use a method of investing known as ‘value investing’. 
 
The concept is actually quite simple: Find a company selling at a price below its true value, or intrinsic value.
 
In other words, it’s not about picking junk. It’s about finding stocks the market hasn’t correctly priced – stocks worth more than the market says their current price is.
 
To do this, the masters of value investing take a look at company’s underlying business to see if it’s a winner. 
 
What this means is, they peak into the company’s fundamentals – the essential building blocks that make the company tick.
 
These building blocks are things such as earnings, cash flows, debt, and other crucial factors affecting the life of the company.
 
But if these things sound complicated, don’t worry, I believe anyone can adopt this style of investing! And to kick start your value investing career I’ve made a simple list to help you on your merry investing way…
 
What you can use to hunt down great shares
 
It’s all well and good to say you’re looking for a share selling below it’s true worth…but how do you actually find one?
 
To help you along on your value investing away I’ve created a list of the things I like to look for when using this style of investing:
 
i) If the price is right, this figure will tell you when to buy! 
 
A price to earnings ratio (P/E) that is less than the market average. But to really make use of this, you shouldn’t look at it in isolation. You should compare this figure to other companies within the same sector. This will help show you if the cheap is relatively cheap or expensive – and whether you’re grabbing a share at a bargain price! 
 
ii) Looming debt problems? This figure will tell you if you need to be alert
 
The debt to equity ratio (D/E) should be less than one. This shows you that the company should be able to tackle its debts and shows signs of good financial strength.
 
iii) If you want your company to survive, make sure this number is growing!
 
A strong earnings growth over a long period. Let’s be real for a second. A company is not going to exist if it can’t generate earnings… And if a company is unable to consistently grow its earnings, it’ll run into problems later down the road. Sure – a hiccup or two of lower earnings is fine – but you’ll want this figure to consistently pump.
 
Now you can use these elements to help you start picking shares like the world’s greatest investors!
 
To find out how to easily use these and other ratios to choose the right share, take a look at my new report, “How to pick your first winning share.”
 
Thrive in your possibilities.


How you can profit from the stock market bible!
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