Saturday, December 4, 2010

The Investors Need To know


As we are providing multtibaggers investements tips for long term...We do face many questions from many people.The majority ask us, is it the right time to invest? Will it double in short term?(1-4 months). if stock prices comes down what shall we do? can i get income every day?


We attempt to answers such kind of questions here:-

Q1- Now Market is in its peak , is it right time to invest? or
if correction comes what shall we do?


The real investors need to
'Buy business,Not Stocks '.
Eg-
If you buy 'infosys' stock today and when you see a stock price falling down 5-20% instantly you fear and start selling to safe-guard your money. This is not value investing.When you invest in a company you have to analyse well before investing ,not after.One need not to bother for the stocks price that fall&rise's. The Market price movements is not going to change the fate of that particular company or the company will not shut down tomorrow and run away with your money. The Tata's,Birla's are successfully running their companies many decades.Infact there are many indian companies running more than 100 years successfully.The market price is not going to restrict the growing companies.The investors need to invest and wait for the yield to harvest.


One need to analyse the business and its future market potential/Growth.When the business or the products demand rises, that enhance the growth(profits) of the company.By and by, the particular company grow stronger year after year, that will be refelected in their balance sheet.The investors need to give much attention to this study of the business model& its cycles.Not just alone the share price movements, that go's up and comes down. Once, you are diligent in this study, you can have better understanding when to buy/when to sell. This understanding will give you 'Massive returns for your small investment'.
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The Moral here is-
"Watch Out The Business Growth; Not The Stock Price".
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That's why, Investor's like Warren Buffet says- 'Buy The Business;Not Stocks'
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Will the stock price double in short term, if i buy today?
There are many people who come new to stock market used to have a pre-idea about stock market is, yet another casino. One can gamble...if luck prevails one can double his money over night!!.
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I just warn, people who has this type of thinking pattern. Because they are the one who make loss in stock market.They are under the holds of 'Greed'. The greed is the first enemy of any investor's.
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I have one question for the people who expect their investments gets double in less time?
If you plant a seed , Can you expect it growth and the yield of the fruits in over-night or short while?
or ' You dig the ground every now and then and take out the seed to measure its growth'?
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Just imagine, if one start setting up a new plant for manufacturing a consumer goods, how long will it take to establish for manufacturing,marketing and acquiring business? or
Setting up a steel plant and start producing the steel and seeing the company's growth can it happen overnight?
How much time it will take to establish a business set up to take out profits?
For Eg:-
Can A New Mobile Company Acquire 1 crore coustomers over night?
No.It takes time to establish brand names,marketing to the target potential customers and achiving its desired business target. it takes years. It will not happen over night.The stock business is not a Lottery ticket that will give you instant 'JackPot' by its lucky draw.

Think about it.
The Investors need to see the future growth of the particular industry/company participation and its management team , the business model etc.
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"The stock market is a serious long-term business,
not a make-money-overnight casino."
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it really takes much time right from the plant erection, production and acquiring customers and making profit!. So the point here is, the investors need to have patience to see the business growth, allow it to grow...as the business grow stronger the stock value will grow stronger. Day by day, soon or latter the stock will become a true 'MULTIBAGGER'.
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The 'power of compounding' is another such, important factor to consider for investments.We will discuss it soon here.

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