The Hindu Business Line : We've Got Mail!

Different people have different ways of selecting stocks they would want to add to their portfolio. After all, what matters most is to ensure the best bang for bucks. Read on to find out what some of our readers do to ensure a good bargain.

I've been a stock market investor for the last seven years. Since I am an IT professional, I don't enjoy the luxury of time to analyse companies in detail. So I often try to follow what's happening in the stocks that I invest by tracking news reports and stock suggestions offered by different papers. Until about two years back, I depended heavily on my broker for advice. But then I realised his recommendations come with certain amount of vested interest. Although I have not stopped taking his advice, I have learnt to exercise my discretion.

Shyam Sundar, Kolkata

I generally pick stocks when the overall market sentiment is slightly bullish. For example, when I saw a recovery, I picked up a few stocks. Dividend yield is another thing that I look out for, besides, of course, the PE ratio.

Srinath Seshasankaran, IT Professional , US

I used to pick my portfolio with a long term perspective. Despite being a very cautious investor with absolutely no trace of greed, I ended up making a pile of losses between January and October 2008. My excessive reliance on fundamentals has taught me this lesson that it is ridiculous to stay invested in a stock because it's primarily a good company. I hate to say this, but this lesson's turned me into a day trader. After all, I should do something to recoup my dear money!

Divya Rajkumar, Marketing Consultant, Hyderabad

I am a relatively new entrant to the equity markets. Last year after seeing the way things happened at the stock exchanges, I decided that I was no good at selecting and managing a portfolio. I've now shifted the burden to experts in the mutual funds industry and hold only select large caps stocks and that too one from each sector.

Aditya Narayanan, Sales Executive, Gurgaon

Within each stock, I look at three parameters - the business, its management and its valuation. Available to us is a plethora of tools like discounted cash flow, price equity ratio, price-to-book ratio. Other important factors in selecting shares are: Firstly, to identify stocks in the growing industry. Second, the selected company should be in a niche business. The third factor to be borne in mind is that the company should be a leader in their own business. Lastly, keep in constant touch with the `market pulse'!

Ashok Jayaram, Chartered Accountant, Bangalore

I study the five year's net assets of a company, that is what would be left after paying all creditors, including debenture and preference shareholders, the ratio of the company's debt to its equity and, of course, its goodwill, before I buy its stocks. Voting rights and participating in the company's statutory meetings sans any monetary returns for my investment are of no use to me.

S. Ramakrishnasayee, Principal, DAV-BHEL School

(Have your ever been to a dealing room to place an order?

Tell us about your experiences at younginvestor@thehindu.co.in.)