Even before talking about investing buy insurance that covers accident, critical illness, hospitalization. Save up for emergency fund 

The best way to invest is to keep it simple. Start by observing which shops in a shopping mall attract the most customers; this can guide you to potential stocks after conducting thorough fundamental analysis. Tracking top value investors in India and analyzing their stock picks can provide valuable insights for your own investments. Look for companies with a competitive advantage, particularly those with strong brands that demonstrate pricing power, as these indicate durability in the marketplace.

Additionally, prioritize businesses with net worth that consistently increases over time, in line with Warren Buffett’s philosophy. It's essential that companies maintain a healthy gross profit margin; if it's too small, the business may not be worth operating. Evaluate the efficiency of the business by examining its return on equity (ROE), aiming for a consistent ROE greater than 15% over at least the past decade. When analyzing cash flow, remember that depreciation expenses do not impact it; therefore, the cumulative cash flow over ten years should exceed the cumulative profit after tax (PAT) for the same period.

A relatively safe investment strategy involves seeking stocks with a price-to-earnings (P/E) ratio that is 30% below the average P/E over the past decade. Look for companies facing temporary challenges, as bad news can lead to discounted stock prices, presenting buying opportunities. Additionally, consider employee satisfaction rankings; happy employees contribute to a company’s success. Learning from the wealthiest individuals in the world about how they built their fortunes is often an underrated strategy. Always validate whether profits are increasing and debt is decreasing.

A general rule of thumb is to avoid investments in companies with overly complex balance sheets. Companies with significant capital expenditures can be riskier, so it’s prudent to search for stocks with a price-to-book (P/B) ratio of less than 0.8. While it can be challenging to find online-based companies at a P/B ratio below 1, such opportunities may exist in more traditional sectors. By following these principles, you can develop a more effective and straightforward investment strategy.

To determine potential investment opportunities, it's important to understand various valuation metrics and apply them effectively. The Net Current Asset Value (NCAV) is calculated as current assets minus total liabilities, and a good strategy is to buy shares at a 33% discount to this value. According to Benjamin Graham's net rule, you should consider stocks that trade below this discounted NCAV. The Net Asset Value (NAV), or book value, reflects the equity or net worth of a business.

For further evaluation, if the average price-to-earnings (P/E) ratio is 29.92, a 30% reduction would bring it to 0.7 times the average P/E, which equals approximately 20.73. With a current earnings per share (EPS) of 4.65, multiplying these gives us an estimated target price of 4.65×20.73≈96.394.65 \times 20.73 \approx 96.394.65×20.73≈96.39. Therefore, you should consider buying the stock if its market price is less than or equal to 96.39.

In assessing risk, the risk-free rate should be the maximum of the current bond rate or bank deposit rate. As a general guideline, aim for a dividend yield of at least 2% plus the risk-free rate to ensure adequate returns. Additionally, Graham's intrinsic value (IV) formula is IV=EPS×(8.5+2g)IV = EPS \times (8.5 + 2g)IV=EPS×(8.5+2g), where ggg represents the expected growth rate. By applying a 30% discount to the intrinsic value, you should look to purchase the stock if its price is less than or equal to 0.7×IV0.7 \times IV0.7×IV. Utilizing these formulas and metrics can help you make more informed investment decisions.