1. Why is cash flow more important than net profit?
Cash flow shows real money coming into the business, while profit can be affected by accounting adjustments. Strong cash flow supports growth and stability.
2. How do interest rates affect long-term stock investments?
Higher or steady rates can lower stock valuations because future earnings are discounted at higher rates, which may reduce price multiples.
3. Is investing in trending sectors like AI always safe?
Not always. Some companies in popular sectors may be overvalued or not yet profitable. Financial strength should be checked carefully.
4. What is a margin of safety in investing?
It means buying a stock at a price lower than its estimated true value, reducing downside risk.
5. Should short-term market volatility be avoided?
Volatility is normal. Long-term investing focuses on company fundamentals rather than daily price movements.
