What is your PRICE POINT to buy shares?

July 14, 16

What is your PRICE POINT to buy shares?

Greetings from Hitesh! Last two posts on looking at company logo and investing in it - has been our invention in the field of investing. From all the methods invented so far – this is the easiest / effective and profitable method. Thanks a ton for liking our post and forwarding to your friends.

Last weekend I was talking to an investor and he was talking about finding CHEAP stocks and investing in them. His definition of CHEAP SHARES was below Rs.10. For him everything above Rs.100 was costly.

I come across so many theories every now and then and I could see the BACK OF THE ENEVELOP calculations of such investors. I understand their PSYCHOLOGY of investing in these kind of shares.

In marketing PARLANCE – these shares prices can be called as PRICE POINT. PRICE POINT is a price where the demand of a SHARE is likely to be higher.  Many guys have this kind of mentality and they invest or waste their time in finding such cheap price companies.

Why CHEAP shares?

Most guys in India have come a long way from poverty to middle class and middle class to newly rich class.

They have seen their forefathers and fathers struggling for few rupees. They have been taught about FRUGALITY / SAVING MONEY / BARGAINING from EARLY AGE. Their total focus is on PRICE. Less they pay, happier they feel.

If the price is low – they are ready to buy anything and everything, whether they need it or not.

The things, which they really need and if the prices are not in their comfort levels – they will not BUY or STRETCH themselves a little!!

When they come to share market – they find it difficult to forget those mental tendencies.

What is the RIGHT WAY to DECIDE PRICE POINT IN SHARE MARKET?

Share Price in Market is a combination of various factors. The two most important factors are EARNING GROWTH of that company and at what multiples (P/E ratio in market parlance) it is available. P/E ratio gives an indication of VALUE to the PRICE you pay.

We focus on these two aspects before deciding whether the price is high or not.

What NEXT?

Many guys come to us and ask us only one question – what is our FEES? They are not ready to consider the VALUE they get when they work with us.

If they go on taking decision the way they have always taken based on their personal PRICE POINT, they will pass an average life full of compromises and adjustments.

Do you want to live such a life?

If NOT, please join us NOW.

Have a GREAT INVESTING.

Follow me on Twitter @hiteshmparikh /  WhatsApp - +91-9869425399 / www.hiteshmparikh.com

Live With Passion…Invest With Passion.

Hitesh Parikh.

www.hiteshmparikh.com