Better Coat Tailing

Investor Toolkits
10

Coat tailing is not to be done blindly. One should be aware of the risks and details about the company.

Best way is :

  1. Maintain an excel sheet

  2. Note Down what people whom your respect are buying.

  3. Judge if you can track the sector - A businessman who runs a company always tracks 2-3 main things about his business - for eg. price of key Raw Materials(s), per unit price of the product, competitor actions etc

  4. Write 5 reasons why you want to buy the same stock and 5 reasons why you shouldnt.

  5. Also write why would you want to buy this company and not its competitor

Be very honest and thorough in points 3 and 4

Remember, you are responsible for your own actions and money.
Dont trust anyone blindly
Also, be objective…Some people whom you coat-tail may be sharks.