Buying a stock : Step 1

Finding a good growth/value stock is not that difficult. But most of us forget the second part : Buying it at good price. So I will divide this post in two steps :

1. Find a good stock.
2. Buy it at good price.

Step 1 : Typically this should be titled as “Find a good company or business.” In this step, you don't look at stock price, but you find about what company does. Question is : How can I evaluate sectors other than sector in which I am working. Don't worry, there are experts sitting there, writing about all companies with keeping only investors in mind. It's not that difficult.

Below is the list of resources which I use to identify good companies :

1. Business Today Magazine : I never miss a single issue of BT and I am a great fan of it. Excellent coverage with excellent details. The writing style is also quite clear and simple so you won't feel bored.

2. Business Line Newspaper (Sunday edition) : Check example company review here. Economic Times also has such weekly stock reviews.

3. CNBC TV 18 : I also don't miss daily broadcast of “Your stocks with Udayan Mukerjee” and weekend broadcast of “Taking stocks”.

First show covers particular stock queries from viewers and answers are given from two experts : “Fundamental” expert and “Technical” expert. Fundamental view is more important for long term. Technical is for short term view and sometimes useful for traders only. You don't need to listen everything in this show, be selective and try to judge on your own senses also. They broadcast this show number of times during the day and videos are also available on moneycontrol.com. Click here for more details.

Second show is more important. They invite some top experts from Financial Institutions like DSP-ML, Citigroup, ICICI securities etc. and experts give sectoral and long term views.

Other than these resources, you can find useful information at moneycontrol.com,icicidirect.com and live at CNBC. By the way, This is not one time step. It should be always going on process.

Another important point is that selection of a company also depends on every individual's own likeliness. I may like TCS and you may find Infosys a better choice. Along with time, our understanding changes and likeliness for a sector/company may also change. More time you spend reading and listening, better you get.

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