How can you identify potential investment opportunities? (2024)

Well as a bottom-up investor, I try to get ideas from different sources. I look at the companies trading at 52-week low prices or have substantial movement in prices downwards or upwards. I then try to analyze whether the movement makes sense or not. I don't mind cloning the super investors if the selected equity makes sense. For that, I use DATAROMA to get insights into superinvestors' moves.

If you are a beginner investor, “Pay” yourself first. Auto deduct your savings from your paycheck so it’s never in your hands to spend. Reward yourself when you hit milestones that you set in advance. Encourage others to invest which helps you hold yourself accountable to lead by example. Pick a person that you want to emulate as an investor and read everything that person did to increase their wealth and DO IT!

Join an investment club. The power of the many helps with opportunity of finding great deals that can be vetted by the group. Read the book by Benjamin Summers, The Shadow Bankers Secrets" which outlines the mathematical formulas to measure risk versus return. The goal of course is to minimize risk and to have a return that compensates for the level of risk.

These are very relevant questions to begin with, all investment types are not suited for everyone. Horizon, ammount, purpose, target returns are key considerations.Then there is a factor to keep it realistic, you can't say that you want one day return to be 35% and hope your manager to find the right suitable asset for you.

I personally start with technical analysis. This is because I want to be on the right side of the trend and either want to be buying when the stock has bottomed or entered into an uptrend.Then I'll look at the forecasts for the company to see if they are achievable, and try to identify and catalysts for the business either specifically in the stock or any industry tailwinds.By minimising my risk on trades with a defined exit point, I look to capture multiples of my risk and compound this through a high volume of trades.

Based on my experience, first analyze your passions, and then research those companies that fit your profile. Now when you are considering investing, how can you find companies worthy of your investment? I use the example of Anti-Aging. I was always interested in new technology, how can we reduce pain, make life more enjoyable from a physical standpoint. When you go to the shopping center, watch how people walk. You will be shocked, and I say this because I have watched, and so many people are walking as if they are in pain. So I am looking for investment opportunities to address this problem. I see huge demand, and limited supply of solutions, and of providers who offer solutions. That is the signal of a business opportunity.

For every day economy news and listening to views of very high level CEO's / investment managers watching CNBC or Bloomberg on a daily basis may help starters to familiarize themselves with equity public markets. Analyzing stocks and valuations require very specific knowledge which may be daunting but looking at cash flow statements and understanding basic concepts of revenues vs expenses could prove helpful. If investors are interested in investing small amounts in commercial real estate, established, credible crowdsourcing company websites have actual deals and a lot of research to read.

I use the Regulatory News Service to look at company specific news as well as the Financial Times roundup email to keep up to date with the latest news via headlines.I use SharePad to screen and filter for stocks based on fundamental and technical factors, and believe the annual report is a must for anyone buying heavily into a stock.Management know that most private investors won't read these and so this is where they bury the bodies.

I use two stock screens: fundamental and technical In the fundamental filter i use the balance sheets, financial ratios for 20 years and look for stocks which have given 10% revenue growth/share plus a ROCE of 15%. Then i arrange the data in "moving" blocks of 10 years and shortlist those which show the most improvement over the last 10 year block.Out of the shortlisted stocks, i then apply "technical" filters to see which have fallen at leat 50-60% from their peaks, to ensure "Margin of Safety". Then i find which stocks are in the "over sold range" and are displaying "positive divergence" on multiple indicators. I then invest 50% at a time in a maximum of 15-20 stocks, keeping 50% reserves, to deploy, should the market move against me.

I was always fascinated by these markets when I was growing up and as soon as I started earning I knew that investing is the way to make money from money. But I didn't knew where to start from.Then I did research and found out that to start with mutual funds is the correct way to start. Today I am a mutual fund distributor for indian markets my self and I help individuals make this first step.Upon further researching I kept on opening up new investment areas for me, stocks bonds alternate and what not. But it took me 8 years of deep research to reach here and diversify.So stating from personal long experience I have learnt that research is the key to make money from investments and this is the way I did it.Dm me to know more

Considering all the investment options, such as hiring a financial advisor, or trying to invest in the stock market on your own, or buying insurance annuities, or buying real estate and dealing with toilets and tenants, consider an Investment Club. What is your passion? For me, it is Medical technology, medical business. What is it for you? If you know of any investment clubs and what businesses they focus on, lets share that information. The goal is the power of the many, to avoid the losses you will encounter by trying to be an expert in everything, doing everything yourself.

PE ratios and FCF yields are great but at the end of the day as a trader I get paid by P&L.I can have the most undervalued stock in the world but if hasn't moved in 12 months then I've lost money.I want my capital to be efficient and so I rotate into new stocks once my targets have been hit. By taking on plenty of trades where the risk/reward is in my favour I minimise the risk of large losses through a single position.

Risk, "Investments are subject to market risk,Please read the offer document carefully before investing"You have heardcthis lets decode thisThere are many risks in the world of investing, everything can be right but something like covid can come in.So to assess these risks are very important and to keep yourself uptodate with events around the world is very important.You can do it via various tools as mentioned above but know no one is fully complete and you need to measure multiple risk factors.

Jeff HinesFranchise consultant/ Business Strategy and Patient Advocate Medical Anti-Aging/Oil & Gas Drilling Partnership / Asset Based Long Term Care solutions,For those looking to buy a business, using the absentee franchise model may be ideal. In fact, as an investor, you can purchase franchises that require no hands on management from you, and for oversight, the time requirements are minimal. This idea makes you an owner of a business that can be sold, or expanded, and gives you the flexibility of absentee ownership. You supply the capital, the franchisee supplies the business model, which has been proven, and the management expertise and you reap the rewards.

Although equity is the best performing asset class over the long term, it does have its ugly moments. Such a moment may be at hand. The Dollar index is moving higher. If the Fed were to hike rates in November, the Dollar index will move higher too. The US 10 year yields are at the highs of 2008. It shows equities are getting overheated and time may be nearing to shift to Bonds. The next rate hike may not be the last if oil continues its move beyond 100$/barrel. So if Fed hikes continue, equities will face a "tipping point".Also, it will make sense to have "strategic reserves" in Gold and Silver ETFs to the extent of 20% of portfolio, to offset the inevitable, whenever that happens. I have taken profits off the table wherever available.

There are known risks and unknown risks.It's impossible to prepare for the latter, and so the only way to do this is via position sizing.By preparing for a 100% loss on every trade (and one day it will be) then you'll never wake up to a destroyed portfolio.A good rule of thumb is to never put more than 25% of your investment account into a single position.When Patisserie Valerie went bust because fraud was discovered investors lost everything in what seemed to be a solid business!

Fundamental Analysis: Evaluate the financial health, earnings potential, and management of companies or assets you're considering. Look at factors like P/E ratios, revenue growth, and debt levels.

By understanding the market trends, conducting fundamental and technical analysis, looking for catalysts, and evaluating risk vs. Return, you can identify investment opportunities that offer the best returns while minimizing the risks.

By spreading investments across various asset classes (stocks, bonds, real estate, etc.), sectors, and geographical regions, diversification reduces the impact of a poor performance by any single investment. This is because different assets often react differently to the same economic event. Apart from that, diversification helps minimize unsystematic risk because the adverse impact on one investment can be offset by positive performance in others.

I have been investing in real estate since 1980. I've worked in 5 different sectors of real estate careers--Realtor, buy & hold investing, rehabbing, wholesaling, and note investing. Diversity in real estate investing is paramount to your financial strength. For example, housing is at its utmost demand and supply cannot keep up. Because of that, I find alternative housing in which to cashflow that others may not find appealing. Housing values go in waves but always seems to recover. Rents are constantly on the rise. Rehabbers can optimize their portfolios by getting in and out of a project quickly. And then there's real estate note investing where you don't have to deal with tenants and the monthly cashflow is stable and constant.

Investing in real estate demands patience and discipline. Discipline is crucial to stick to your investment strategy amidst emotions or market fluctuations. Post-acquisition, properties might take years to appreciate in value or yield significant rental income, requiring patience. Moreover, understanding real estate market cycles is key. A disciplined approach and patience are vital to navigate through the market dynamics ensuring long-term investment success.

This is the most important part of all. Advisers will review investments for you consistently or should do but it should extend much more than if your portfolio has gone up or down. What’s the comparable performance against the benchmark, other funds in the same category, same provider, different sectors, industry average and so many other factors. 6% return might seem good but if comparable funds are returning 8% it’s not so good.

As suggested earlier, i monitor on a daily basis, especially, during volatile times, with an impending crisis looming.Any amount of caution is justified during the present and upcoming scenario.I watch the business news closely, looking for events which might further aggravate the already unstable global situation, because no one really knows from which source the next irritant may come which will tip the scales, the other way.I read the Economic Times every day . So i attempt to be alert and ready.

Start with clearly understanding your outcome. What do you want to achieve, and how fast? Investing is not all about money. How much time can you dedicate? What is your risk tolerance? What skills and knowledge do you have that can offset risk? What contacts do you have that can help you in a certain asset class? A good self-awareness of your personal circ*mstance will help you pick the best asset class and strategy where you have the most chance for success. Personally, I'm not an advocate of diversification, in the sense that if you really want to be good at something, you have to focus. I would stick to one strategy in one asset class until successful, and only then start in a different investment strategy.

Consider partnering with a real estate professional who has personal experience with the type of investment in which you have interest. Start with just one, and have discussions with your real estate education in mind. Some learn better by doing.