An investor can make a profit on his investment only if he uses his financial knowledge properly. While it is important to know how to check if a stock price is below its intrinsic value, the investor may require some knowledge of investment strategies including practical foresight to make a profit.
Even though strategies may not work all the time, they would help an investor identify the stocks which are unlikely to rise in near future. Over time, it would help the investor grab an opportunity to make a profit even when stocks are trading below the intrinsic value.
These strategies will also help the investor to develop an eye for evaluating the value of a stock before buying it.
"Keep your mouth shut and open your eyes and ears," CS Lewis had quoted as a key to find right stocks to invest in. Reading the right content may help the investor sharpen their skills to watch out for news and developments that affect a company's share.
In the previous episode, armed with the knowledge of Smart Alex, Pratik learned how to compute the intrinsic value of companies and how to forecast their cash flows in the future.
After Alex's lesson on investment strategies, is Pratik now ready to pick out the best stock for investment? Watch on to find out.
Also watch:
Part 1: How Pratik lost his savings but got his life back
Part 2: How the discovery of compounding sets Pratik on the road to recovery
Part 3: How Pratik learns to read companies' financial statements over tea and biscuits
Part 4: Pratik learns all about market cycles and how they work
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