VACHANA SECURITIES PRIVATE LTD
# 48, 11TH Cross, 4th Main, Malleshwaram, BANGALORE -3.
“STOCK SELECTION PROCESS”
CA.RUDRAMURTHY.B.V
ACA, CFTe, MCOM, MFM, M-PHIL, PGDBA, PGDMM
Research Head: Vachana Securities Pvt Ltd.
Partner: Vachana Research & Co.
Investment Analyst: TV 9 Kannada.
Resource Person: Bombay Stock Exchange.
Columnist: Vijaya Vani News Paper.
Author: Income Tax, Himalaya Publishing House.
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Stock market as an Investment Alternative:
• It is equivalent to owning any
other real asset or financial
asset.
• Highest
return
provider
compared to any other asset
class.
• Regular income in the form of
dividends and also capital
appreciation to its holders.
• Any Dividend received is
completely exempt from tax
and all LTCG are tax exempt
and STCG is taxed flat only at
15%.
2
Why many get attracted to Stock
markets???
• Value of Global Derivative
markets is estimated to be
$1,200 Trillion, which is 20
times larger than the Global
economy. (1Trillion = 1 lakh Cr)
• Probability of Winning and
Losing for a beginner is 50% in
stock markets, unlike any
other profession which is 0%.
• However in the long run the
probability of success matches
with any other profession.
3
Is Investment in Stock markets
Risky???
4
Is Investment in Stock markets
= Gambling???
The outcome of Investment is based on
Economic activity, Industry performance,
Company performance and Market
Psychology. Whereas the Outcome of
Gambling is random and based on luck.
5
Is Investment in Stock markets
= Gambling???
Thus for an Investor Buying/Selling stocks
randomly, Stock markets looks like a
“Gambling Den”.
6
How Start my Investments in Stock
Market?????
1. How to select stocks?
2. Tax Planning in Investments?
3. Systematic Investments and Pyramid
Investments?
4. Investment Vs Trading?
5. Portfolio allocation and Asset mix?
7
STOCK SELECTION PROCESS:
1.
2.
3.
4.
5.
6.
PORTFOLIO ALLOCATION & ASSET MIX.
MARGIN OF SAFETY.
FUNDAMENTAL ANALYSIS.
TECHNICAL ANALYSIS.
ASSET CYCLE.
MONEY MANAGEMENT SKILLS.
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FUNDAMENTAL ANALYSIS:
1. MACRO ECONOMIC ANALYSIS.
2. INDUSTRY ANALYSIS.
3. COMPANY SPECIFIC ANALYSIS.
9
TECHNICAL ANALYSIS:
1.
2.
3.
4.
5.
6.
7.
PRICE VOLUME ANALYSIS.
CHART PATTERNS.
INDICATOR SYSTEMS.
CANDLE STICK ANALYSIS.
HIGH FREQUENCY TRADING.
QUANT TRADING SYSTEMS.
ALGO TRADING SYSTEMS.
10
Who is an Intelligent Investor ???
“To invest successfully over a lifetime does not require a
stratospheric IQ, Unusual business Insights, or Inside
Information. What’s needed is a sound intellectual
framework for making decisions and the ability to keep
emotions from corroding that framework.”
Warren E.Buffett
11
Who is an Intelligent Investor/Trader ???
Stock market is not a game for
the stupid, the mentally lazy,
the man of inferior emotional
balance, not for the get rich
quick adventurer persons.
THEY WILL ALWAYS DIE POOR.
How can I make some quick
money in law or surgery.
Similarly in markets too. Learn
markets which is the cause,
result will follow.
12
Who is an Intelligent Investor/Trader ???
“No one can give you better insights about the
market than market itself. If an average
Investor/Trader looks at reasons for markets
behavior, Successful Investor/Trader will just follow
the markets movement without arguments”
Prof.CA.Rudramurthy.BV
ACA, M.COM. MFM. M-PHIL, PGDBA, PGDMM.
13
HOW CAN YOU BECOME RICH IF
I WORK HARD ???
14
YOU CAN ONLY BE BORN POOR BUT
NEVER DIE POOR UNLESS YOU OPTED
FOR IT”
15
“IF YOU FEEL, EDUCATION IS
EXPENSIVE, THEN TRY IGNORANCE”
Prof.CA.RUDRAMURTHY B.V.
CA, CFTe, M.COM, MFM, M-PHIL, PGDBA. PGDMM.
www.vachanasecurities.com
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