I havent been able to write much in the previous month, part of the reason for not writing was that things were not changing much (in terms of downturn) from what I had written in my previous post. We were heading for a downturn and broke the earlier lows set by us. . .and well gold was shining all along . . .We still are very much in the grips of a downturn but I think now there are pockets wherein opportunities for long term investing are showing up. . .most of the stock are available at 1/10th the prices of January!!! If we were buying them at that price, nothing should stop us at buying them at a fraction of a value. . .If things improve (and eventually they will) then these would become assets. . .really high paying assets. . .
Some cherry picking can be done based on certain parameters that should be applied in such conditions:
1) Solvency of the company
2) Dividend yields
3) Management track record
and offcourse the price that you are paying for it (PE ratios) amongst others. . .
They say it was the worst of times and it was the best of times. . .guess this axiom applies more than ever!
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