Wednesday, 24 July 2013
Reading an annual report of a company a day is probably the best use of your time allocated for investing.
It only takes about 2 minutes to know if a person is well versed with equity investing. The majority are not and they should rightly invest through funds run by good professional managers. They should know the limitations and costs of investing in mutual funds too.
For the few who are knowledgeable and comfortable to invest safely on their own, how can the time they allocate for their investing be optimally utilized?
Probably, an hour a day set aside to read the annual report of a company of your interest is the answer, for me. These annual reports are easily available through the internet. Through discipline and hard work, you can then develop a good knowledge on these companies and their related industries.
Over time, you will have deep understanding of many companies. These companies that are within your circle of competence are monitored to benefit your investing.