Open Book Extracts’ Post

When evaluating companies, it's crucial to understand the distinction between market capitalization and enterprise value. Each metric offers a unique perspective on a company's size. The key is to consider the company's specific industry, business model, and whether it's a growth or value stock. That's what really matters when you're looking at these numbers. #stock_market #financial_statements #investment

You only need 15-20 companies on your portfolio. But there are 5000+ companies listed on BSE. Only 1000 of them give 20% or more ROI. The rest of the 4000 companies underperform. Even if you know how to select the right companies, you’ll probably be right 80% of the time. For the remaining 20%, you may end up selecting the wrong ones. Now, if you don’t know how to select companies to invest in at all - Imagine what kind of investment decisions you would make. That’s why you need to educate yourself - ➡️Evaluating business fundamentals ➡️Understanding market trends ➡️Risk management strategies ➡️Timing your entry and exit points The more you learn, the better your decisions, and the closer you'll get to building wealth through the stock market. Invest in knowledge before you invest in stocks. Your future self will thank you. #stockmarket #investment

Maximising shareholder value is a strategic imperative for companies seeking sustained growth, profitability, and competitiveness in today's dynamic business environment. By understanding the drivers of shareholder value and adopting effective strategies, companies can enhance their market position, attract investment, and create sustainable value for their stakeholders. https://lnkd.in/dXaY__6j #shareholders #shareholdervalue #corporatestrategy #gestaldt #morethangivingadvice

When I started investing, I couldn't buy any shares priced over Rs. 500 because I thought they were too expensive. I was investing only a few thousand rupees every month, so I would have gotten only 7-8 shares. On the other hand, I could get hundreds of shares of a Rs. 10 stock. Many years later, I understood where I was going wrong. I was simply using the share price as a proxy for the intrinsic value of the shares I was buying. In hindsight, a few of my investments still worked, but many did not. Here's what I would do differently: I would separate the "share price" from the "value of the share" in my mind. We've all been trained to look at the price of things and judge how valuable they are based on that. Instead, start looking for other measures of value. Some of these could be: 1. Price-to-Earnings Ratio (P/E Ratio) - to check if something is overpriced or not. 2. Sales growth rate over the last 5 years. 3. Profitability of the business over last 5 years. 4. Capacity expansion - for example, if the company is building new plants and increasing its manufacturing capacity. 5. Free cash flows. 6. Growth in investments from FIIs (Foreign Institutional Investors) and DIIs (Domestic Institutional Investors). I'll be writing more on these later.

Boosting value by reducing shares! 💹 Learn why companies repurchase their own stock and what it means for your investments. 📈 #StockBuybacks #InvestSmart #FinancialEducation #StockMarketTips #InvestorMindset

📈 S&P500 market movers today & their respective Smart Scores: 🔼 Top Gainers: • Paramount Global 14.59 USD (+6.65%) | 3.6/5 • Edwards Lifesciences Corporation 78.47 USD (+6.18%) | 2.8/5 • Stryker Corporation 335.48 USD (+5.95%) | 2.8/5 • The Boeing Company 211.04 USD (+5.29%) | 2.8/5 🔽 Top Losers: • MarketAxess Holdings Inc. 225.51 USD (-17.80%) | 3.2/5 • Rockwell Automation, Inc. 253.28 USD (-17.56%) | 2.8/5 • Teradyne, Inc. 96.59 USD (-7.65%) | 3.0/5 • Alphabet Inc. 140.10 USD (-7.50%) | 3.2/5 • Alphabet Inc. 141.80 USD (-7.35%) | 3.2/5 ---- Smart Score is a compound score for a company, indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor Scores (Value, Dividend, Growth, Resilience & Momentum) computed by Smartkarma.

Private equity firms acquire companies to drive revenue growth and enhance profitability through operational improvements. By leveraging their expertise, they optimize business processes, streamline operations, and capitalize on growth opportunities. This strategic approach transforms portfolio companies and maximizes returns. Discover the impact of private equity on business success! 🌐 Visit our website: https://lnkd.in/gQn3APjv #CBC_advisors #CrossBorde #PrivateEquity #BusinessGrowth #OperationalExcellence #Profitability #InvestmentStrategies

We invest in firms that we believe are undervalued and hold them until that value is realized. Quality being a major factor in determining value, we generally own excellent companies—industry leaders with favorable economics—capable of growing earnings for decades. In addition, most of our holdings are run by owner-operators with significant personal stakes in the business. We believe this alignment of interest creates better outcomes for shareholders. Read more about our insights in our newsletter: https://lnkd.in/gUXuV9Hx

✨ The Magic Formula simplifies stock selection to earnings yield and ROIC, finding companies that are cheap and profitable. 📈💡 This strategy lays a foundation for strong investment returns. 💪📊 #Investing #StockMarket #FinancialStrategy https://buff.ly/3KcCMTN

🔍 How to Analyze a Company Before Investing in Its Stock 🔍 Thoroughly analyzing a company is crucial for making informed investment decisions. Learn the key steps and metrics to evaluate a company's potential before investing. #StockAnalysis #InvestingTips #FinancialHealth https://lnkd.in/gZ4C742d