Prajna Capital - An Investment Guide

Bear market bottom or not, one thing is abundantly clear. Whether things get worse or not, there is a lot value available in the stock markets. Stock prices of strong companies have fallen along with those of overpriced ones. Hence, bargains abound. Benjamin Graham, father of value investing, believed in buying stocks that were quoting at their liquidation values. Liquidation value means the price you pay for a company that is not operating any more. Having invested at near liquidation values, value investors wait patiently for the value to emerge and make handsome returns. Investing at the time of the Great Depression, Graham got many such opportunities. Today, despite the sharp fall, the share prices are quoting much higher than their liquidation values, but definitely below their fair values. Taking a leaf from Graham's book, you can look for companies whose book values and market capitalisation are equal. In fact, there are instances of companies whose market capitalisati...

It can help you restructure your portfolio and survive - and even thrive - in these uncertain times The stock markets the world over have had a fabulous run over the last five years, with indices multiplying many times over. The domestic stock market has been at the forefront of this rally, and has been one of the best-performing markets and the darling of global investors. But all good things come to an end, and the dream run of stock markets worldwide has been no exception. This January was a rude shock that sent investors scurrying for cover. Traders have seen a year's profits get wiped out in a week, and most investors are also yet to recover from the bruises. But, over the last few weeks, markets have seen a semblance of normalcy again. There has been a handsome rally, but doubts and worries still linger. Inflation, an economic slowdown, and the fiscal deficit are the three demons haunting the markets. But we have already had a steep correction. Valuations are not as high as ...