Frequently Asked Questions
If you are a serious investor, you would want to use best of the tools to quickly and effectively identify best opportunities in the stock market. Signing up for Investello Premium will help you to ensure safety of your capital and to realise higher returns in the long term which will exceed your short term upgradation cost by a great margin.
Following are the features of the premium plan and their benefits:
Quickly find the best stocks by setting your own criteria. Our Screener is the most detailed one available in Indian Market. Various free screeners available today don`t allow you to filter upon the important criteria such as Free Cash Flow Growth, FCF/ Revenue Yield ,Market Price/Valuation Model Price, Industry, Sectors etc.
Popular Investment Strategies:
According to various common approaches and strategies, we have come up with some pre-defined criterias to select stocks. In all these criterias, we have specially kept in mind to ensure the safety of capital by choosing companies which are free from various red flags like High Debt, High NPA or high number of pledged shares. With premium plan, you can see the results according to such strategies and these results are updated every day.
Warren Buffett recommends to buy a wonderful business at a fair valuation. Once you have determined a company to be a wonderful business, you would want to know whether the company is fairly valued. If a wonderful business is determined to be fairly valued according to at least 3 of the 4 models, you would get good returns if you invest into it for the long term.
We developed this feature out of our own requirement and felt it would be useful for others as well. Stock Comparison allows you to compare key measures of various stocks at one place instead of having to look at different pages. This helps to analyse various stocks at once and select the best stocks amongst them.
The free websites provide you with the raw data for stocks and leave it up to you to analyse that data. The ratios data over these websites (such as EPS, Book Value etc.) is not even normalised for Bonus and Splits which makes it impossible to compare the historical ratio figures with that of present ones.
Investello’s purpose is to help you select the great companies for long term investment with the necessary tools and knowledge applied over the correct and normalised data. Using the Investello Premium features described in the previous question, you will find yourself making quick and confident investment decisions in Indian Stock Market.
Needless to say, the informed application of proven value investing principles will result in higher return over your investment.
We recommend you to choose the companies that have the following attributes:
Unique competitive advantage.
Management known for its high integrity.
A proven track record of stellar performance.
Are available at a fair valuation.
Many people say, that it is impossible to find such companies. This is not true. From our experience, in almost all kinds of market, there are such companies which are great businesses and yet have been valued lower than their fair values because of the speculative nature of the market.
Even if you are unable to find such opportunities, it is better to relax and do nothing rather than to invest against your principles. In the long term, the investments made by a patient and disciplined value investor would always beat those made on the basis of speculation and market sentiments.
Here is an explaination of how to analyse the above mentioned factors:
Using the information provided in the article:How to detect a company’s moat?, you can use Investello Screener to find such companies which may have a possible moat. Then you can do some research over internet to see whether the company really has a competitive advantage which allows it to over-perform its competitors consistently.
Over a search engine like google, just search by adding the corresponding “Company Name” or “Management Name” to terms like “Fraud” or “Unethical Practices” and see the results. If the company or management has a shady past, avoid it irrespective of however promising the numbers or the story seem to be.
Proven Track Record:
If a company has been able to grow its Revenue, Profit and Cash Flow consistently without high leverage (debt equity ratio), such company would have been able to do so because of competitive advantage, expert management etc. Therefore even though past performance does not guarantee the future performance, it is an indication of a lot of things to be right with the company.
You can analyse the past track record of a company quickly by checking its dashboard in Investello or by checking the respective Safety, Performance and Growth Analysis Pages.
Warren Buffett recommends to buy a wonderful business at a fair valuation. Once you have determined a company to be a wonderful business as per the above factors, you would want to know whether the company is fairly valued through its valuation analysis.
If a wonderful business is determined to be fairly valued according to at least 3 of the 4 models, you would get good returns if you invest into it for the long term. You can find the Valuation Analysis for a company by checking the corresponding Valuations Tab. This is a Premium Feature.
Therefore, identifying a multibagger requires a bit of work in the beginning. But the effort and input cost are totally worth because of the long term rewards.
Best Investors like Benjamin Graham and Warren Buffett never relied on anyone else’s stock recommendations. Rather, they worked on increasing their own knowledge in order to gain profits over the long term.
If you want to invest into Stocks for the long term, we recommend the same to you.
At Investello, our mission is to equip you with necessary knowledge and tools so that you can make your own investment decisions. We don`t provide Stock tips and Recommendations.
We ensure that all the data you see over Investello is as per the latest Information released by the company or Stock Exchanges. Our data is updated on a daily basis.