Portfolio management is very subjective though I express my few thoughts,
Your first question is How can I learn to evaluate a company and its balance sheet?
“First try to screen fundamentally strong companies, and then check their Sales growth since inception, and try to corelate last 10 years growth median, secondly check gross profit margin, then operating profit margin, should be good and most importantly always do management analysis for companies in which you are investing for long term, as management plays very crucial role, then look their borrowings, check receiving’s compared to sales, and perform this and compare with peers and industry, it will give you clear idea”
Your second questions is 1. How can I make informed decisions on when to invest in a company and when to get out? I have had a problem with this strategy as I have made decisions based on instinct so far and exited some real good investments at the wrong time and held on to some laggards like HDFC Life for many years.
answer is to invest in a company if you are looking the fundamentals, check sales is improving and margin are constant, and to exit when “Terminal value is 0”, in finance terminal value tells growth will stop from here, e.g. Nestle, this is just an example, don’t treat else, Nestle’s main product is cerelac and in India Nestle’s market share is above 80%, now this product caps with birth rate in India, it will not grow more than that so this birth rate say 6% to 7% is the terminal value, then you should exit such stocks, and find stock which will grow at least with nifty say average 12% to 13%
Third Question is Will it be a good idea to pursue an online course on investing, and if yes, what would be the options.
“Online course is not recommended, if you are planning to invest more than 5 Lakhs it’s better to higher a professional, who will charge 2% to 3% of total capital, as he is 27*7 in this field and informed with latest happenings, I think you may lag to latest happenings”
This is my personal opnion
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