Ask HN: Are you a part-time stock investor?
If so, how do you test your stock investment strategy? Do you rely on intuition?
Yes I am. I utilize value investment methodology which is the brainchild of Benjamin Graham.
On the few aspects on stock evaluation, among them are: - Company's financial statements (Balance sheet, Cash flow statement and Income statement) - The company's management profile (from remuneration comparison from company-to-company to governance and each individual's background) - The company's activity as published by the Exchange - Overpriced/Underpriced compared to book value and also intrinsic value
In order to check the performance of my investments, I measure from two perspective: - Realized gains/losses - (dividends received and gains or losses from sale)/(amount of money put up to purchase the stock) - Unrealized gains/losses - (Mark-to-market gains or loss)/(amount of money put up to purchase the stock)
From the figures attained, I compare them with figures such as fixed deposits and performance of index funds