Dear Friends,

As the Iran-US war is over, we need to consolidate all our effort to build a great portfolio in the financial market to make a generational wealth.

We have been discussing on various elements which I have learnt over the period of many years in the market.

Always a single investment strategy will not obviously work for everyone.

However, all the successful investors share a common approach.

They do not chase every single opportunity that comes along before them in the market.

Instead, they focus on only one businesses that they  understand fully.

The companies with strong fundamentals and prospects for future growth.

A good investment is not just about generating high returns at all time.

But by managing risk is equally important.

I prioritise always this strategy in all my own investments at all time- and wherever it is possible. 

I do invest only in the companies that possess a strong business model, capable management, growth potential and a favorable risk-reward ratio.

After all, there is no need to seize every opportunity the market presents.

Identifying a few solid opportunities and allowing them the time needed to grow is often enough.

If a company continuously issues new shares often, the ownership is at stake of existing shareholders may gradually decrease.

That is why it is always important to monitor how equity capital that changes from year to year.

We usually talk about the increases in equity capital, but sometimes we also see it decrease as well.

This can happen due to various factors like share buybacks, capital reductio and corporate restructuring also.

The crucial point for take away from here is...

It is not simply whether a decrease in equity capital is good or bad; Bu, the reason behind the decrease is what that matters the most!

If a company repurchases its shares through a buyback offer, the total number of shares in the market would decrease.

Consequently, the ownership percentage of existing shareholders may also increase.

Alternatively if capital reduction occurs for any other reasons, one must understand that the underlying circumstances and the rationale behind it.

Have a great investing time ahead!