My Dear Investors,
I wish to share the knowledge (obtained from my experience) with my valuable customers. So I am starting this series. Your queries, Feedback, arguments,critics are most wel-come.
1) Most retail investors FEAR about the Current price of the share
Remember share price doesnt matter but valuation of the stock matters.
a) Look at this company
Share price Rs. 56,391.45 per share. Today it is up 3.91% up by 2120.35 Rs. It managed to make new 52 week high in volatile market.
On 21st september its price was 24957Rs. Within one month it has gained 125%..means more than money double.
b) also have a look at http://money.rediff.com/
On 9th september its price was 1.27Rs. Nearly one month it is down 37%.
Share price 80paise per share. Today it fell 4.7%
So dont think that share price is @ Rs.2000 hence it is costlier to buy. or If the share price is @2Rs means it is cheaper to buy.
What matters is underlying business and future prospectives of the company/business.
100Rs. stock up by 1 Rs is same as 1000Rs stock up by 10 Rs. So what matters is how much % u can gain.
Eg: for 10000 u can get 100 shares costing 100Rs. each or 10 shares of 1000Rs each.
at the end of the day 100Rs quotes 101 and 1000 Rs. shres quotes 1010 amout u gained is 100Rs. flat 1% in each case.
So Dont worry about the share price but look for share vluations.
God Bless all of Us.