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.
For eg:
a) Look at this company
http://money.rediff.com/
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.
Happy Investing.
God Bless all of Us.
--
KIRANKUMAR
