A Newbie Guide to Investing

[gautam]

since as the title of this post suggest, its for a newbie trying to gain footage into the world of investment,.

Expert investors need not read on if you like as you might not agree with what I am going to say subsequently:

personally, I DO NOT think FCF, EBIT, PPE etc....u can have so many different terms and each mean different and each different investor(even successful one) use different ones.

IMO, these are NOT important for the long term investors and you might be surprised how simple the concept is.

Ask yourself a simple qn. How can you make money from investing in a company?
-either stock price goes up and you sell it for a profit or you earn the dividends.

Yes, it is that simple.

Now lets move on.

If you work for someone and that someone gives you a rise of a certain percentage each year for twnety years, would you be happy?
Of course. hardly any wouldnt.

And what tells you of this boss who gives you that rise?? Simple fact: he's making more money every year.

Ok, you got it...

the same applies to company which has been in existence for decades and pays diveidends every single year without fail and in fact, raise dividends every year or at least every few years. That the company is growing and making more money over time.

Could you name any company which fit the above description and subsequently went bust? Well, I can't.

So IMO, key is not to think so much, enjoy life and enjoy investing and enjoy your money!

In summary,

1. Look into companies which pays dividends EVERY single year over the past decades and have characteristics of raising dividends.

2. And use the dividends to buy more shares.

BINGO...you are there!!!