Learn how to invest into stocks safely and take the gamble out of stock investing.

1. 3 March 2012
11 a.m. – 12 p.m.
Webinar will start shortly.

2. What will you learn at the end of
this Webinar?
• 9 Secrets of ‘Safe Stock
Investing’
• How MoneyWorks4me.com
can help you do this at the
click of a mouse?

3. Secret #1: Invest in a business you
understand
Why?
 Because its your hard-earned money that is at stake
 You will study and follow them more easily
 You will be able to recognize if a company is actually a good
or a bad investment

4. Secret #2: Stick with Large caps
predominantly, avoid penny stocks
 Large caps are relatively safe, established players
 Small Caps are more risky, offer less liquidity
 More chances of losing your entire investment

5. Secret #3: Look for companies with
a Moat
 A moat is a sustainable competitive
advantage which prevents competitors
from entering a profitable industry
 Helps a company earn superior returns
 Can help a company maintain and grow its
profits even in tough times
 Examples are a strong brand, patents,
switching costs, high capital investments
etc.

6. Secret #4: Do not invest in
companies having erratic financials
 Such companies are most
likely to fall apart during bad
times
 No guarantee that the
company will keep reaping
profits year after year
 Look at critical parameters like
Net
Sales, EPS, BVPS, CFO, ROIC

7. Secret #5: Avoid companies with
high debt
 Debt-free companies:
 Financially much healthier
 Have surplus cash, which can be invested in
various growth opportunities
 Firms burdened with debt
 Face tough times when the economy turns sour
 If interest rates move high , cost of borrowing funds also rises
sharply, servicing the debt becomes increasingly expensive and it eats
into the company's profit

8. Secret #6: Look for a trustworthy
management
 One of the most important but most difficult to assess
parameters
 Things to look for: Competence, Transparency, Honesty,
Shareholding and Pledging of shares
 AVOID companies where shares pledged by promoters are
high

9. Secret #7: Look for a ‘Margin of
Safety’
 ALWAYS demand a margin of
safety or discount when you buy
stocks
 Helps to Minimize Risk and protect
your capital
 Further, helps you make bumper
returns

10. Secret #8: Diversify, not over
diversify!
Why?
 Reduces risk, but only to a
certain extent
 Protects your investment
from downfall in any one
stock/sector/industry

11. Secret #9: Always use a Stop Loss!
 Limit’s your losses
 Protects your Profits
 Don’t have to monitor your
investments daily

12. How a trailing stop loss works?

13. To summarize…
Secret #1: Invest in a business you understand
Secret #2: Stick with Large caps predominantly,
avoid penny stocks
Secret #3: Look for companies with a Moat
Secret #4: Do not invest in companies having
erratic financials

14. To summarize…
Secret #5: Avoid companies with high debt
Secret #6: Look for a trustworthy management
Secret #7: Look for a ‘Margin of Safety’
Secret #8: Diversify, not over diversify!
Secret #9: Always use a Stop Loss!

15. How MoneyWorks4me.com can help
you do this at the click of a mouse?
• Unique tools help you invest in safe stocks
• 10 YEAR X-RAY
• Management X-RAY
• Company Pulse Report
• Price Calculator
• Portfolio Managers
• MoneyWorks4me Filter

16. Q & A Session
Contact Details:
Write to us at – customercare@MoneyWorks4me.com
Call us at - 91-20-67210600
Visit us at - http://www.MoneyWorks4me.com

17. You can learn more about Investing
in stocks the safest way at
http://moneyworks4me.com/stockshastra
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