The Two Golden Rules of Safe Stock Investing

2.1 First Golden Rule: 'Buy what's worth owning forever'

This rule tells you that when you are selecting which stock to buy, you should think as if you will co-own the company forever. So before you decide to co-own a company, you need to study the company very carefully and find out whether it is really a wonderful business.

This is beautifully said by Warren Buffett; " Our favourite holding period is forever " and to avoid temptation about buying stocks which don't meet this criteria, he said " If you don't feel comfortable owning a business for 10 years, then don't own it even for 10 minutes".

The Benefits of this approach of co-owning a company are:

Stock of such a company is most likely to see a consistent increase in price over the years, giving you the benefit of compounding increase
Such a company is able to withstand tough times better than others and hence you will not lose money on it in the long run
You will have to buy and track stocks of only a few companies. This will give you an opportunity to understand them even better & gain the confidence to make larger investments in each one.

How to determine if a company stock is worth owning forever ?

A company stock is worth owning forever, if the answer to the following questions is an unambiguous "Yes".

(a) Is the company capable of growing its profits even during tough times? and,

(b) Does the company have a great financial track record?

In order to have a better understanding of whether a company is worth owning forever, we came up with the 10-YEAR X-RAY and the FUTURE PROSPECTS for companies which help you understand the financial track record of the company and what we can expect from it in the near future. At MoneyWorks4me, we give a colour coding for each stock as Green, Orange and Red which helps you better understand whether the company is Great, Good or Risky. For the best returns, you must invest in Green companies and avoid Red companies.

Click here to know the Second Golden Rule

Related Links :

Need Help

Introduction

How it Works?

Features Usage Guide

Glossary

The Two Golden Rules of Safe Stock Investing

2.1 First Golden Rule: 'Buy what's worth owning forever'

About MoneyWorks4Me

Our Vision

What Makes MoneyWorks4Me Different

Our Approach: Ensuring compounding work its magic on client portfolio.

Name of the IA registered with SEBI:	The Alchemists Ark Pvt. Ltd.
Logo:
Trade/Brand Name of IA:	MoneyWorks4Me Investment Advisers
Brand Logo:
SEBI Registration Number:	INA000013323 Validity – May 16, 2019 – Perpetual
Registration:	Non-Individual
BSE Enlistment No:	1187
Address:	B-101, Signet Corner Building, Balewadi Phata, Baner, Pune, Maharashtra 411045
Compliance officer Details:	Name: Shrikant Jagtap Email: shrikant.jagtap@moneyworks4me.com Telephone: +919860359463 Address: Same as IA
Grievance Officer Details:	Name: Mukta Vaze Email: mukta.vaze@moneyworks4me.com Telephone: +91 98609 19463 Address: Same as IA
Principal Officer Details:	Name: Atharva Bhide Email: atharva.bhide@moneyworks4me.com Telephone: +91 91758 99463 Address: Same as IA
Standard Warning:	Investment in securities market are subject to market risks. Read all the related documents carefully before investing.
Disclaimer:	Registration granted by SEBI, enlistment with exchange and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.