Saturday, August 23, 2014

Crazy Luck series 2

Opportunity identification

It starts with understanding the subject and how much homework you have done on the subject . Eureka comes only when one is serious about finding solution to the problem in hand .

 For example if you are interested in investing NIFTY ETF .

So what is right opportunity  lets us some some studies Nifty in detail since inception and then tries to map PE ratios , Price to Book ratio and then Dividend Yields etc as one of blogger below has done .

He will come to conclusion that best time to invest in Nifty ETF is when PE ratio is around 11 -13 , Price to Book around 1.9 to 2 and dividend yield is around 3% . If he does that probability of earning double digit returns is high and risk is low . That is opportunity identification







No how do you snatch this opportunity so that " You get termed as LUCKY"  : well that is for next time ...



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