We as investors in the stock market are always on the lookout for the next multibagger. There are 100s of so called ‘hot’ stocks being suggested for quick gains. The chat rooms are replete with stories about stocks that that have gone up 10- 100 times and then everyone claims to have been the first to identify them. However the question to ask is :
1) Is there any process to this madness; is there anything common amongst these stocks that enable them to create value consistently?
2) Can we as investors identify those traits early enough to benefit from this value creation?
3) What are the risks involved in such investments and how to minimize such risks?
Our endeavor will be identifying the key factors in the context of today’s market. In the process we will also try to demystify stock analysis and de –jargon the investment process.