It is crucial to find out that investing is not an exact science. In some investment some make money , others seem to lose whenever they invest in anything like stock,real estate, Money market funds etc. The least difficult strategy for figuring any investment is the level of individuals who become tied up with it and recover their cash. The following dependable guideline is what number of made returns over their investment.In finance, the profit from investment is called a return.when investor get more money than they invest ,then that type of investment is treated as a good investments.Most successful investors are risk -takers. That means that they will take risks periodically if they can afford to, but they never take more risks than are considered necessary to accomplish their goals.while choosing an investment plan, you need to coordinate your own risk profile with the risk related with the item before contributing. There are a few investment that convey high risk yet can possibly produce high expansion balanced returns than other resource class in the long term while a few ventures accompany generally safe and consequently bring down returns.There are two types of investment that items fall into – financial and non-financial related resources. Money related resources can be separate .financial resources can be separated into market connected items (like stocks and mutual funds) and fixed income items (like Public Provident Fund, bank fixed deposits).Non-money related resources like gold and land.Following are Tips to get best return on investment:1. Focus on reducing risk, and simplifyGiven such a conceptual time period,, it is economical to lessen the level of risk in a venture design or portfolio. A business or market cycle ordinarily endures in excess of three years, so there commonly isn’t sufficient time to recuperate from a misfortune that may happen if picking higher risk resources, for example, equities.While the time used showcases one of the more well known examples of a market improvement, the lesson learned here is that, with a maximum of three years to invest, spending in more changeable virtue like equities can lead to unwanted result.Minimizing the obstacle of virtue may also be profitable .2. Consider short-term instrumentsCash is a desirable asset for managing risk and liquidity, and is certainly appropriate for very short horizons. Within the stable income world, securities with less than 3 years period of maturity, such as short-term bond funds for example, may be a good consideration.3. Synchronize goal timing with your assetsIf your exact scope is known like three months, 12 months, or three years , invest in products that generally match your investment limit . Consider these examples:On the off chance that you have an up front installment on a bought thing due in a half year, with the rest of the price tag to be paid in a year, at that point search for items with shifting terms of six to a year.Make sure your investment strategy works for youOnce your venture ace technique has been settled, there are some additional elements that should be considered while actualizing the plan, relying upon the speculation items utilized. Your consultant can overhaul an arrangement that lines up with your transient objectives while settling in a more extensive perspective of your general investment strategy.

The fundamental guideline of investing is easy and understandable: purchasing something today that you think will be worth more later on. In any case, which speculations offer the best returns? That is the critical step about contributing – nobody can be sure which resources will be worth all the more tomorrow. In spite of the fact that foreseeing what’s to come is unimaginable, doing your examination and following a couple of fundamental standards will enable you to investing well.Some days the stock market is up, different days it’s down, however finished drawn out stretches of time the market is for the most part on an upward direction. Amid the U.S. lodging rise in the mid 2000s, land costs continued going just to crash later, making a huge number of property holders default on their home loans and lose their homes. In the event that ventures can pick up or lose esteem, and anticipating the market is greatly troublesome, at that point why investing by any stretch of the imagination?Contributing conveys chance, however verifiably, it has been fulfilling. An adjusted speculation design executed over numerous years can develop into an agreeable savings for retirement. While past execution does not ensure future returns, the U.S. securities exchange has been an astounding motor of riches creation, developing at a normal of around 7% every year in the wake of representing expansion and profits. Past the financial prizes from fruitful speculations, there is a similarly essential motivation behind why you thought to contribute: Not contributing really costs you cash.Followings Are Some Investment Opportunities:Investing is essential, both to develop riches and beat expansion, however which resources would it be advisable for you to put resources into? Comprehensively, the quantity of investable resources is immense. From baseball cards to bitcoin, from gold to stocks and bonds, from products to land, there are a multiple of things you can put resources into. In any case, those starting financial specialists more often than not center around stocks (counting common assets and ETFs) and bonds.Most starting financial specialists select a pick list that supports mirror real stock files. This gives presentation to the more extensive economy and expansion that minimizes risk. Those putting something aside for retirement activity to likewise consider a deadline retirement subsidize.Stable pay venture restore a constant flow of wage to their proprietor. Bonds are the most widely recognized kind of settled salary item. While values are a stake in an undertaking, bonds are a type of obligation. At the point when individuals purchase U.S. government securities, they successfully are loaning cash to the administration. In return, the administration will reimburse the bondholder on a settled calendar, which clarifies the expression “settled salary.”Since Stable pay bonds have an ensured reimbursement plan, they are seen as sheltered speculations. Be that as it may, a bond is just as sheltered as the reliability of the guarantor. A bond issued by a coming up short company or a legislature in emergency may not be reimbursed. Bonds that compensation higher premium for the most part do as such to remunerate financial specialists for the more serious danger of default.Elective venture by and large allude to land, flexible investments, private value, cryptographic forms of money, items and different kinds of items that go past stocks and securities. With the exception of land, a large portion of these elective ventures ordinarily are held just by high-total assets people, not by starting financial specialists.Recognize the True Cost of Your InvestmentsInvestments organizations need to enable you to profit, yet they aren’t philanthropies. As an end-result of holding and dealing with your venture, organizations profit with least adjust charges, exchanging expenses, and cost proportions that take a level of the cash put resources into shared assets or ETFs. These charges fluctuate by organization, yet they can include quick. What’s more, they can be the distinction between a productive speculation and one that loses cash.In 2016, list value common assets had a normal cost proportion of 0.09%. By differentiate, effectively oversaw value shared assets had a cost proportion of 0.82%. Some effectively oversaw accounts do beat file stores, yet in the event that you are uncertain which speculation to make, you typically need to pick the one with bring down charges.Keep away from Panic SellingAll advantages have great days and terrible days. In a few markets, awful news prompts brisk misfortunes after months or years of moderate additions. It can be enticing to promptly offer, yet that is generally an awful thought. On the off chance that you are contributing for the long run, you can frequently give time a chance to enable you to recover investment losses.To know more visit us:Best return on investment,best investment options,Short term investment tips ,Best Investment Options for Retirement,,Peter Lynch investing Secrets,Become a Private Equity Investor 

In this tutorial, we’ll introduce what is stock and how to investing in stock market. Remember, this instructional exercise fills in as a prologue to the different techniques, yet there’s considerably more to learn. Tolerance is unquestionably a prudence with regards to contributing – not simply as far as sitting tight calmly for the correct time to enter a position, yet in addition for holding up until you’ve gotten your work done before you make your first speculation. Your odds for progress will enhance significantly on the off chance that you comprehend what you’re doing.A stock is a sort of security that implies possession in an organization and speaks to a claim on part of the enterprise’s advantages and income.There are two principle kinds of stock: normal and favored. Regular stock generally qualifies the proprietor for vote at investors’ gatherings and to get profits. Favored stock by and large does not have voting rights, but rather has a higher claim on resources and profit than the basic offers. For instance, proprietors of favored stock get profits before normal investors and have need if an organization goes bankrupt and is exchanged.With regards to individual fund and the gathering of riches, few subjects are more discussed than stocks. It’s straightforward why: playing the share trading system is exciting. However, on this money related crazy ride, we as a whole need to encounter the ups without the downs.There are almost 6,000 traded on an open market organizations in the U.S. While this speaks to a 37% decrease in the quantity of U.S.- recorded organizations since its 1997 high, it’s still a great deal of organizations. How’s a financial specialist to pick?In this instructional exercise, we look at the absolute most well known time-tried systems for discovering great stocks (or possibly maintaining a strategic distance from awful ones). As such, we’ll investigate the specialty of stock-picking – choosing stocks in light of a specific arrangement of criteria, with the point of accomplishing a rate of restore that is more prominent than the market’s general normal.A portion of these are straightforward: The Dogs of the Dow methodology, for instance, is easy to the point that it truly takes a couple of minutes to figure out how the framework functions. Development and esteem contributing, then again, are mind boggling – and these sorts of speculators need to invest critical energy to find out about valuation, budgetary proportions and so forth.A couple of provisos before we begin: Numerous financial specialists new to the stock-picking scene trust that there is some trustworthy technique that, once took after, will ensure achievement. There is no idiot proof framework for picking stocks! This doesn’t mean you can’t grow your riches through the share trading system. It’s simply better to consider stock-picking as a workmanship as opposed to a science.There are a couple of explanations behind this:1. Such a significant number of components influence an organization’s well being that it is almost difficult to build a recipe that will foresee achievement. It is one thing to amass information that you can work with, however very another to figure out which numbers are important.2. A great deal of data is immaterial and can’t be estimated. The quantifiable parts of an organization, for example, benefits, are sufficiently simple to discover. However, how would you quantify the subjective variables, for example, the organization’s staff, its upper hands, its notoriety ? This blend of unmistakable and immaterial perspectives makes picking stocks an exceptionally subjective, even natural process.3. As a result of the human (frequently unreasonable) component inalienable in the powers that move the share trading system, stocks don’t generally do what you foresee they’ll do. Feelings can change rapidly and eccentrically. What’s more, sadly, when certainty transforms into fear, the share trading system can be a perilous place.Most importantly there is nobody approach to pick stocks. Better to think about each stock procedure as simply a use of a hypothesis – a “best figure” of how to contribute. What’s more, now and again two apparently contradicted hypotheses can be effective in the meantime. Maybe similarly as critical as thinking about hypothesis, is deciding how well a speculation system fits your own viewpoint, time allotment, hazard resistance and the measure of time you need to commit to contributing and picking stocks.To know more visit us:Best return on investment,best investment options,Short term investment tips ,Best Investment Options for Retirement,,Peter Lynch investing Secrets,Become a Private Equity Investor

With so many amazing and great return-bearing options to invest money, we are often spoils for choice when it comes to good alternatives for our cash. While many individuals also prefer keeping their money only in their bank accounts, it is a wise option to invest and go for investment choices if you have a good chunk of money with no use of it in the near future.Recently, some of the best investment options were offered by firms other than banks and they offered fantastic returns as well. The only issue here is to be a little cautious about where to invest money initially. The trick is to do in-depth research and talk to people who have already used their services and then take a step forward. With time, you are bound to settle on a few good options and use them wisely for investing your money.Here is some of the best return on investment methods to help you reap great benefits:jewelry and precious stones: While most people only go by gold in terms of investments, there are several options in this regard. Diamonds, platinum, and other precious stones call for amazing prices when they sell in the market. It obviously depends on their return ratio at the time of selling; however, this kind of investment can also be used and reaped their benefit at the same time.Antiques and paintings: Several folks may be unaware of this option. While it was regularly traded in the olden days, antiques and paintings are mostly restricted by many people. However, with a little understanding about this market (which is mostly comprised of the creamy layer of the population), art dealings and trading in antiques could be one of the best investment options and has a high return if you choose the right market to deal.Stock market: A much-preferred option, people have invested in stocks since many years and are well-aware of how it works as well. Going ahead the market is only growing in this regard and is considered a wise investment choice too.Real estate: Real estate is growing in every city! With rates as high as the sky, investing in this is a great choice. However, with the number of frauds also increasing, make sure you understand well before putting your money down in real estate.In yourself: One of the least spoken about types of investment, investing in oneself has priceless returns. Learn that trade you have wanted to practice, work on a new skill or art or start that business you know you will excel at. Although the returns could be uncertain at times, it will definitely give you one important thing – contentment and lifelong happiness.Lastly, make sure to keep an open mind when you come across new investment options. Give it a try with a small amount (even if that promises you a small return), see how it works for you and then try it with a larger sum. Also, what has worked out for someone else may not work out for you, in the same manner, hence it is vital to “go with the flow” in this case. Also, keep a steady eye on any shady companies/claims and always trust your gut instinct when it comes to money matter.To know more visit us:investing in stocks, Short Term Investment Tips ,Best Investment Options for Retirement,Peter Lynch investing Secrets,Become a Private Equity Investor 

It is crucial to find out  that investing is not an exact science. In some investment, some make money , others seem to lose whenever they invest in anything like stock, real estate, Money market funds etc. The simplest method for calculating any investment is the percentage of people who buy into it and get their money back. The next rule of thumb is how many made returns above their investments. In finance, the profit  from investment is called a return.when investor get more money than they invest ,then that type of investment is treated as a good investments. Most successful investors are risk takers, they will take risks periodically if they can afford to, but they never take more risks than are considered necessary to accomplish their goals.Following are some short term investment tips which every trader should follow:1.Focus on reducing risk, and simplifyGiven such an abstract time period, it is economical  to reduce the level of risk in an investment plan or portfolio. A business or market cycle usually lasts more than three years, so there typically isn’t enough time to recover from a loss that may occur if choosing higher risk assets such as equities.While the time used showcases one of the more well known examples of a market improvement, the lesson learned here is that, with a maximum of three years to invest, investing in more variable  assets like equities can lead to unwanted result.Decreasing the difficulty of assets may also be profitable .2.Consider short-term instrumentsCash is a desirable asset for managing risk and liquidity, and is certainly appropriate for very short horizons. Within the stable income world, securities with less than 3 years period of maturity, such as short-term bond funds for example, may be a good consideration.3.Synchronize goal timing with your assetsIf your exact  scope is known  like three months, 12 months, or three years , invest in products that generally match your investment limit . Consider these examples:If you have a down payment on a purchased item due in six months, with the remainder of the purchase price to be paid in twelve months, then look for products with varying durations of six to twelve months.4.Certificates Of Deposit (CDs)Certificate of deposits (CDs) are the upcoming  finest place that you can store money as a short term investment. CDs ​are bank products that  you need to keep the money in the account for the term listed – anywhere from 3 months to 5 years. In trade  for locking your money up for that time, the bank will pay you a higher interest rate than you would normally receive in a savings account.The only drawback  to a Certificate of Deposit is the fact that, if you need to withdraw money out before the maturity date, you will pay a fee. The fee is usually equivalent to 3 months worth of interest, and that can take a huge bite out of your earnings. You can obtain the maximum interest rates for Certificates of Deposit at online banks .Make sure your investment strategy works for you.Once your investment master plan  has been finalized, there are some additional factors that need to be considered while implementing the plan , depending on the investment products used. Your adviser can revise a plan that aligns with your short-term goals while resolving in a broader view of your overall investment strategy.To know more visit us:investing in stocks,best investment options,where to invest money,best return on investment ,Best Investment Options for Retirement,Peter Lynch investing Secrets,Become a Private Equity Investor

One of the primary reasons new speculators lose cash is on account of they pursue unlikely rates of profit for their ventures, regardless of whether they are purchasing stocks, securities, common assets, land, or some other resource class. Most people simply don’t see how aggravating functions. Each rate increment in benefit every year implies tremendous increments in your definitive riches after some time. To give a stark representation, $10,000 contributed at 10% for a long time transforms into $137.8 million.What Is The Best Rate of Return?The principal thing we have to do is strip out swelling. Actually, financial specialists are occupied with expanding their acquiring power.They don’t have worry about your money but they think about what number of cheeseburgers, autos, pianos, PCs, or sets of shoes they can buy.When we do that and look through the information, we see the rate of return fluctuates by resource composes:Following are the Resources which will gives best return on investment in future:Gold: Generally gold hasn’t appreciated in real terms over long periods of time. Instead, it is merely a store of value that maintains its purchasing power. Years-By-Years, though, gold can be highly changeable, Some years the cost of the gold going high ,else some years it decreasing, so you need not only take risk to get more benefits but also require patience.Money: Fiat monetary forms are intended to deteriorate in an incentive after some time. Actually, $100 in 1800 is worth just $8 today, speaking to lost 92% of significant worth. Covering trade out espresso jars in your yard is a frightful long haul contributing arrangement. On the off chance that it figures out how to survive the components, it will at present be useless sufficiently given time.Bonds: Historically, great, quality bonds tend to return 2% to 4% after swelling in ordinary conditions. The more dangerous the bond, the higher the arrival financial specialists request.Business Ownership and Stocks: Looking at what individuals anticipate from their business possession, it is astonishing how predictable human instinct can be. The most noteworthy quality, most secure, most stable profit paying stocks have tended to return 7% in genuine, expansion balanced comes back to proprietors for a considerable length of time. That is by all accounts the assume that makes individuals willing to part with their cash for the expectation of more cash tomorrow. In this way, in the event that you live in a universe of 3% expansion, you would expect a 10% rate of return (7% genuine return + 3% swelling = 10% ostensible return). The less secure the business, the higher the arrival requested. This clarifies why somebody may request a shot at twofold or triple-digit returns on a start-up because of the reality the danger of disappointment and even aggregate wipe-out are substantially higher. To take in more about this point, read Components of an Investor’s Required Rate of Return.Real Estate: Without utilizing any obligation, land return requests from financial specialists reflect those of business possession and stocks. The genuine cost of return for good, non-utilized properties has been about 7% after prominence. Since we have experienced many years of 3% swelling, in the course of recent years, that figure appears to have balanced out at 10%. More dangerous undertakings require higher rates of return. Furthermore, land financial specialists are known for utilizing contracts, which are a type of use, to expand the arrival on their venture. The present low-loan cost condition has brought about some noteworthy deviations as of late, with speculators tolerating top rates that are significantly beneath what some long haul financial specialists should think about sensible.To know more visit us:investing in stocks,best investment options,where to invest money,Short term investment tips,Best Investment Options for Retirement,Peter Lynch investing Secrets,Become a Private Equity Investor

According to the Yardeni Research report on bull and bear markets, over the past eight and a half years since prices bottomed out during the financial crisis, the stock market has returned an annualized 19% or so. But it’s also clear that stocks go into periodic, prolonged slumps, falling nearly 40% on average over a period of a year in the 20 bear markets since 1929. With so many people getting accustomed to shares, the stock market and learning the trade, there are even more rising to the opportunity of getting a feel of the stock market through trading. Many also opt for trading as an opportunity to get the best return on investment in an easy and timely manner.However, being a trader today is anything but easy. Talk about the high risks, huge amounts of money being added by the minute and even bigger frauds that are constantly heard about. Even with so much online security and caution, traders who have been trading for a good number of years are also duped for large sums of money. While this obviously does not mean that a newbie should totally refrain from it, it just means that one should be a little extra cautious when it comes to investments and stock trading.These excellent short-term investment tips are apt if you are looking out to keep your investments high and risk low:Move past the smaller stuff:Don’t let small losses impact you. Look at it as a game: There will be some winners and some losers but that doesn’t mean you stop playing. Make sure you keep the bigger picture in your mind while moving ahead.Move a little past the P/E ratio: “The P/E ratio must be interpreted within a context, and it should be used in conjunction with other analytical processes,” says Investopedia. While many investors may look at the P/E ratio as a hard and essential concept when it comes to shares, it is vital to look at the entire experience as a whole picture rather than sticking with a fixed stigma.Go forward with a strategy: Don’t become the “jack of all and master of none.” If you constantly switch instead of sticking with one strategy that works well for you, you will soon get confused and the chances of results will be slim. Pick your style and go forth with it.Keep an open mind: Do not judge a book by its cover. While most large companies may be profitable, it is not a completely bad idea to restrain fully from the smaller ones. In the past, many small companies have struck gold for their investors so be wary before putting off a company simply because it is small or it’s a start-up.Know what others don’t know: Want to really get ahead in the game? Then start learning more about what you do. Research, learn and get ahead. Start trying new methods, don’t lose focus, get in touch with those who have good experience in trading and refer to the internet. Learning never stops and in this case will definitely give you the much needed upper hand.Apart from all of the above, it goes without saying that the biggest risks and highest ROI happen only with time and a ton of experience. Going forward, you can choose to invest slightly over a period of time or get so fascinated with the concept that you do it with larger sums. Either way, do what suits you, get comfortable with it and make sure you give it your best shot each time!To know more visit us:investing in stocks,  best investment Options,Best Investment Options for Retirement,Peter Lynch investing Secrets,Become a Private Equity Investor 

What is the best thing when you have a large sum of money lying and not too many expenses? Investing it of course! While most people may have multiple suggestions to do these, some of the best investment opportunities are in fact very simple. They, however, need a stern eye to know everything about it in detail before proceeding. Our tip? Never go with your gut instinct when it comes to investments. Your hard-earned money deserves the best garden to grow and for this; you will have to travel far and wide. Do your research, talk to someone who knows about investments and see what best suits you.Many people also come across friends and relatives who have had invested somewhere and get good returns. While taking advice never hurt anybody, it is the implication of bad advice that has done. However, never get into investment opportunities in haste, no matter the situation.These tips for safe and worthwhile long-term investments are put together for beginners and experienced individuals. Simple yet thoughtful, these may just save you from making that grave investment mistake:Commodities always procure a good deal: Worthy commodities like gold, silver and other precious jewels and gems get high rates when they are sold. Furthermore, your money in this form remains with you. The items can be sold when the need arises or when the market prices are high.Shares work well if you are patient: So many businessmen have grown purely because they made the right decision of investing in shares when they were low. When companies gain profits, shares increase too and selling them at such a point can earn you pretty good amounts of money.Invest in a new or growing business: Although this may be something that may or may not give you best rewards, it is best done with caution. Check to see how the business works, its future growth plans and long-term rewards and then invest if it seems a good decision.Real estate can be tricky yet rewarding: One of the best yet most risk-bearing investments, real estate can rise to soaring high prices or completely collapse! New projects in good areas are a safe way to invest in real estate if you plan to go this way.Bonds make a good investment deal: If mutual funds and other investment methods aren’t your cup of tea, bonds are the best way to go ahead! Certain government entities and corporations also provide good bonds investment opportunities.While there are plenty more that can be used as great investment mediums, these 5 can be commonly done by anybody who is looking for a good deal. Likewise, shares, company fixed deposits, post office saving schemes, equity and shares purchase, mutual funds, provident funds etc. can also be seen as excellent investment options.No matter the type, make sure you get complete details of the plan/method you choose to invest in and also find out about the locking period, interest, returns and other vital details before going ahead.To know more visit us: what is the best investment, best return on investment, short term investment tips,Best Investment Options for Retirement,Peter Lynch investing Secrets,Become a Private Equity Investor

Sometimes, investment ideas can come from monitoring trends. This week, we noticed a new trend appears to be at work. Combining this with some other long term trends in the market results in a short list of stocks that could be among the market’s biggest winners in the short run, and the best option of investing in stocks. One of the long term trends in the stock market is the increasing importance of global economic diversification. This can be applied to stock selection by analyzing a company’s sales. Companies with a significant amount of foreign sales will be the global companies poised to benefit from this trend. Testing the Value of Foreign Sales for Large Companies According to FactSet, a research firm, “coming into the Q3 earnings season, companies in the S&P 500 with higher global exposure are expected to benefit from the tailwinds of a weaker U.S. dollar and higher global GDP growth.”The research firm maintains a database showing Geographic Revenue Exposure based on the most recently reported fiscal year data for each company. In a recent research report, stocks were divided into two groups: companies that generate more than 50% of sales inside the U.S. (less global exposure) and companies that generate less than 50% of sales inside the U.S. (more global exposure). Further analysis was then done to find that companies in the S&P 500 with higher global revenue exposure are expected to deliver stronger growth in sales and earnings than S&P 500 companies with lower global revenue exposure. The results are actually rather dramatic. Companies with a majority of sales in the US are expected to report a contraction in earnings and sluggish growth in revenue. Companies with a majority of sales outside the US account for all of the expected growth in earnings in the index for this quarter. Generating Trading Ideas From That Research While this is useful information, it is possible the information could be even more powerful when applied to stocks trading at lower prices than those in the S&P 500. This can be done by limiting our search to low priced stocks. These stocks are likely to deliver the largest short term percentage gains.To find potential buy candidates, we can screen companies using the free screening tool at FinViz.com. This tool allows us to find companies meeting a variety of criteria. For this screen, we will look for low priced stocks with substantial global exposure. FactSet is a more sophisticated data analysis tool and has significantly more capabilities than free tools. To find companies with foreign exposure, we will need to use a different approach than the one applied in the study summarized above. We will limit our search to companies traded on US exchanges that are headquartered outside the US. This will allow us to find companies which are likely to experience most of their growth outside the US. The fact that they are headquartered in other countries indicates they have significant business operations there. The fact that they are listed and available for trading in the US shows that they also have substantial operations in this country. We will also search for stocks trading below $5 because stocks at this price are more likely to deliver large gains, in percentage terms, than stocks trading at higher prices. We will also limit our search to stocks with a significant amount of institutional and insider ownership, at least 20% on each measure. High institutional ownership shows that large investors have done research on the company and determined that it is a buy. Large insider ownership shows us that that the managers of the company have faith in its operations. Without access to more sophisticated research tools, these two factors can tell us what the research reports likely say. Institutions tend to sell when research reports are neutral to negative. Insiders tend to sell when long term prospects dim. Finally, we limited our search to stocks with low volatility. We used beta to measure volatility and required the stock to have a beta of less than 1. This avoids the most volatile stocks which carry higher than average risk of loss. To know more visit us: Best Return on Investment,

Value investing has an appealing logic to many investors. The idea is simple. Value investing generally involves searching for stocks trading at discounts to their fair value. These stocks can be bought and held until they trade at or above their fair value.  These ideas were first put forth by Benjamin Graham, a business school professor who counted Warren Buffett among his students. Graham is widely considered to be the father of value investing and he wrote widely on the topic. His work includes descriptions of strategies that he found to be successful. Graham developed and tested the net current asset value (NCAV) approach between 1930 and 1932. He later reported that the average return, over a 30-year period, on diversified portfolios of NCAV stocks was about 20%. An independent study showed that from 1970 to 1983, the strategy gained an average of 29.4% a year. What Is NCAV? Graham defined NCAV in the 1934 edition of Security Analysis, the book he cowrote with David Dodd. He said NCAV is equal to “current assets alone, minus all liabilities and claims ahead of the issue." In accounting terms this is current assets minus the sum of total liabilities and preferred stock. Current assets are cash and cash equivalents, receivables, and inventories. They are already cash or are convertible into cash within a relatively short period of time (usually less than a year). Net current assets exclude intangible assets along with the fixed and miscellaneous assets of a firm. Some readers may see a similarity between NCAV and working capital which is defined as current assets minus current liabilities. The difference is that NCAV deducts total liabilities (current and long-term) from current assets. Compared to book value, the NCAV method is a more rigorous standard. Book value can include intangible assets, which can be overstated in value. Book value includes land, property and equipment which can take considerable time to convert to cash. In their book, Graham and Dodd pointed out that when stocks trade below the company’s NCAV they are, most likely, trading below the company’s liquidating value. This means that it is reasonable to assume that most companies can be sold off for at least the value of these assets. They also noted there was a margin of safety in the company’s remaining assets, fixed assets like plant, property and equipment. These assets could, in time, be sold to offset any loss incurred when converting the current assets into cash. Graham and Dodd created an investment strategy based on NCAV. When they found companies trading well below their liquidating values, they bought them. Screening on NCAV In the 1949 edition of his book, "The Intelligent Investor," Graham explained exactly how to screen for buy candidates. He wrote, "…if a common stock can be bought at no more than two-thirds of the working-capital alone—disregarding all other assets—and if the earnings record and prospects are reasonably satisfactory, there is strong reason to believe that the investor is getting substantially more than his money’s worth." To find a reasonably satisfactory earnings record, we required companies to have positive earnings per share from continuing operations for the past12 months. Earnings can hide operational difficulties since there can be accounting assumptions that generate earnings for some companies. To minimize this risk, we required that companies also have positive operating cash flow over the last 12 months. Cash from operations is defined as revenues less all operating expenses. Graham also believed low debt levels would help these companies survive. Therefore, we screened for companies that have total-liabilities-to-total-assets ratio below 50%. This confirmed companies have more assets than liabilities. We then screened for low prices, less than $2 a share. However, these stocks can be illiquid with low trading volume. Despite the risks, this can be a useful approach, again, in the long run. As Graham wrote in the 1973 edition of "The Intelligent Investor": We will help you to find out what could be the best investment options for you, please contact us To know more visit us: investing in stocks,