INVESTING IN EQUITY

In the last blog post I talked about this financial crisis being a good opportunty for equity investments,investments in gold and silver, a first or second home and to do your assets allocation. Of course there is no right or wrong time to start saving regularly before investing it.
Now here I assume that you have decided what amount you want ot invest in equity as a percentage of your assets and your planned allocation for it every month. Once this is done you need to start looking at selecting the right stocks to invest.
Some guideline criteria
1. Look for stocks with no or less debts from the companies whose business you understand
2. Better still if these have a sizeable cash reserve.
3. The stock should be liquid enough
4. Lower PE and PEG of less than one
5. Preferably dividend paying with consisitent record of dividend payouts.
6.I recommend the beginners to go for well known and high quality blue chips from well managed business houses with high corporate governance and manageemnt.
Once you have selected the stocks, make a small purchase of it as this will help you follow it up better and then invest systematically in the same stocks both on dips and at regular intervals.
let me know your list when you have picked your right stocks and ask questions if any.
Next blog post we are going to discuss the other investments mentioned above. All the best