On 15th March 2020, people, as well as analysts, were preparing for the next fiscal year. On 23rd March 2020, stock markets saw their biggest fall in one day. Today, after one year, indices gained more than a double from march low. There's no perfect analysis in the stock market. What happened to analysts though? Nothing, the jobs of analysts are always secured.
You can analyze any stat you find on the internet. But it's nothing against 'the experience'. Experience can predict the upcoming trend. In some cases, if you have enough of it, you don't need to read financials.
You can still be a rich investor by not seeing a stock price a single time.
Education is the most beautiful thing one can have, especially, financial knowledge.
I suggest not to read news articles on financial results, rather, an investor should analyze the official financial statement, which includes messages from board members, company's plans, and if it reported loss, their viewpoint on it. It's a part of the investing process, although your research alone cannot fulfill your goals, it would rather provide you the insights - the path, making it clearer. Like if the company repeatedly failing you, regardless of tough circumstances, insights allow you to get out.
It's important to learn for the future, considering the past. Every time, it is different. But people make a mistake by not considering it and giving more value to the past, considering there is no difference.
Approach: If you're going long-term, for X time, consider doing this process in parts. Analyze quarterly reports, analyze annual reports. Examine and supervise. If the company fails you repeatedly, regardless of exceptional situations, try to solve the problems. If you cannot change, disinvest before the X period. You're one of the owners, you're one of the shareholders, you should not be supporting fake promises repeatedly. It is great to have impactful shares. Take a bow if you're able to solve problems. Consider going further after the X period. Extend the process timely, expanding it.
It was 'investing' since the beginning. There's no 'true investing,' there're different interpretations. It's just owning business is more important than gambling given shares, as Ben Graham once said.
A very common piece of advice that every successful investor gives but very few seekers implement: What scares people is market volatility. In short term, the market will look difficult to navigate, but in long term what eventually gets rewarded is how well the business has done. Everyone seeks tips and insider information. The three phrases that you must engrave in your mind are good businesses, right valuations, and long-term focus.
70% of people I know are trading or intends to trade without understanding it properly. In the future, with the market becoming more broad-based, the volatility will increase with growth. To balance: (1) Invest for future. (2) Invest in country's growth. (3) Invest where there is responsibility.
As good business needs financial support for which investors step up, as investors' money deserves a fundamental study of business before going into the business, every fundamental study requires an investment of time for the money to be deserved and for the deserved business.
A successful investor = When you practice a little more; when you're being patient a little more.
Invest where there is responsibility, invest in the country's growth. India is militarily and economically stable - the largest military and the fastest growing economy. It is comparatively, have become a politically stable nation. It is important for a country to achieve these three aspects: (1) Militarily, (2) Economically, and (3) Politically.
Sustainable investment
Investment in sustainable
Compounding? Just one thing. Warren Buffett started investing early. He made the most of his wealth after the age of 52. He's the richest investor in the world.
Personal or private finance in simple words. Understanding the personal financial needs of an individual and taking actions accordingly to finance the personal needs. Often refers to managing money by saving and investing and planning to increase wealth for future needs. Simply, it is all about meeting financial goals through well-planned finance. Personal financial goals can achieve by making personalized strategies such as a planned investment, devise budget, emergency fund, limited debt, credit card usage, family needs, retirement fund, action-specific fund. These strategies can be prioritized, assessed, and restrained according to personal choices.
People often ask the question that, following the long-term approach, why they are not getting the targeted money. Gaining wealth is a life-long process of involvement in your investment, having a minimalistic approach, and maintaining physical as well as mental health. Even the most successful investor Warren Buffett got the most of the money after his 50th birthday. Wealth is what you don't see.
The one from personal finance. The word 'Budget' can be manipulative. Use 'action-specific fund.' Budget Cross mark Action-specific fund White heavy check mark
It's not complicated. It's not rocket science. It's just math to be figured out. People who don't want others to participate, made it look difficult. And those are the same people who don't understand it properly and behave like an expert.
Learning, teaching - the most beautiful thing we humans can do.
A good night sleep is a thank you to yourself. You can achieve success in life when you're mentally fit - including other common things, of course. I remember Warren Buffet once answered the question of - what is success according to him. He simply replied, "I am happy. That's my definition of success." Your happiness index, overall, should be very high if you call yourself a success.
Why very few investors are getting richer, always? Because they are business persons first. They capture what others don't. When your President or Prime Minister says an industry or a sector is growing, and inviting investments, it is growing. It is the best tip investors can get.
Investing without advice from a financial advisor is just like working out in the gym without a fitness trainer.
If you want to be really good at investing, be a business person while investing, not a trader.
The reality is - if they won't trade, there will be a lack of liquidity in the market because of the whole market ecosystem of today's world. And you would not be able to sell any time.
People often tend to go with tougher things, thinking of it as best. Value investing is an easy art. But the art. The art of patient investing. Patience, which most people lack. Patience, which was reported to be lucrative.
A very small number of people end up being successful in the stock market. Why? Because unsuccessful people followed the 'outcome' of successful people. Instead of following the process, they followed the name. Instead of following the process, they followed opinions. As Parag Parikh once mentioned, looking at others' success without knowing the risks taken by them, unsuccessful investors try to pretend to be them, the successful people, thinking that they too shall be as successful as them.
The common values richest people share: Long-term investment + Involvement in business + Sustainable entrepreneurial actions.
You get rich by not buying a coffee on Monday, not buying cigarettes on Tuesday, not buying for on Wednesday, not initiating a plan for a movie on Thursday, getting a book on Friday, learning on Saturday, and planning investments on Sunday.
Take sustainable actions today in order to become a futuristic investor. Most of people lack sustainability.
