4-P formula to buying GOOD shares

Promoter: The person who runs the company shapes its destiny. Therefore, it is extremely important to buy shares of ONLY those companies that are managed by a top-class entrepreneurs.

Prospects: Share prices will go up in the future if - and only if - the company does well in the future. Hence, needless to state, that the company's products/services should enjoy excellent customer-demand.

Performance: Value of a company is determined by the numbers (profits, EPS, EVA etc.) it generates. Naturally, good performance will enhance the company's value (and consequently its share price).

Price: How much you pay for a share is critical. Don't pay more than its' intrinsic value. Lower the Price vis-a-vis the Value, better are the odds of making super-normal profits.


This formula is, of course, no secret. Problem is that we rarely apply it. We are too lazy to work hard and expect to be spoon-fed. It is highly unlikely that anyone will give you 'tips' to make millions, but himself be happy with measly commissions.