Saturday, March 10, 2012

The keys to investing in equity


'I bought this scrip last week and it is down. Should I sell?'

'The markets are trading at a peak. Is it right to invest now?'

'I want to make maximum returns in minimum time. Suggest some stocks.'

'Which are the stocks worth buying with price less than Rs. 50?'

'When will the market correct? I want to invest in some good shares.'

This kind of approach to investing in equity is a recipe for disaster.
There are some serious problems here. Let's pick up some important lessons.

Lesson 1

The moment the prices of scrips drop, say, by 5%-10%, we get worried. In that anxiety, we want to sell and get out.

Let's say the Reliance share you bought last week is down 10%. So what? Will Reliance business close down? Or will Mukesh Ambani run away with your money? No.

The movement in stock prices has no impact on the business. Reliance will continue to make profits and grow. Mukesh Ambani will continue to build world-class projects. If that is the case, Reliance shares will see new heights in future. Why bother about these falls which likely will only be temporary?

The problem is, we buy stocks, not businesses. The Tatas and Birlas have been around for over 100 years. Hundreds of successful companies have run for decades and continue to grow irrespective of the stock market volatilities.

Yes, some businesses succeed, some fail. There are ups and downs. That is the inherent nature of a business. But, in the long run, they will make profits and grow. That is where management counts. Good managements run profitable operations.

Second, that's why we diversify. Even if we lose money in a few stocks, we will still make lots of money in others.

Moral: Buy businesses, not stocks.

80 comments:

  1. I truly like to read your post. Thank you so much for taking the time to share such nice information. I definitely add this great post in my article section.

    wealth management industry

    ReplyDelete
    Replies
    1. Please try Free and Honest Intraday Secrets, Strategy & 100 Trending Scripts Daily !
      https://youtu.be/k5_XNt71ezw

      Delete
  2. One of my friend regularly invest in equity shares and now I am also thinking of the same. Earlier I was afraid of investing in it but now I understood the concept so ready to invest.

    Wealth Management NJ

    ReplyDelete
    Replies
    1. Please try Free and Honest Intraday Secrets, Strategy & 100 Trending Scripts Daily !
      https://youtu.be/k5_XNt71ezw

      Delete
  3. Thank baaratbook+steven Kolonsky.i do continue my postings..

    ReplyDelete
  4. I appreciate this. Before I'm afraid to invest onto something, thank for sharing this. Now I know what's the key to investing! :)

    Marabell @ Ed Butowsky Dallas

    ReplyDelete
    Replies
    1. Please try Free and Honest Intraday Secrets, Strategy & 100 Trending Scripts Daily !
      https://youtu.be/k5_XNt71ezw

      Delete
  5. Its good to be here, very nice post, the content is amazing, keep posting friend it will be very helpful for everyone, Thanks for sharing. I really liked it.you can also read Check nifty

    ReplyDelete
  6. Great advice! Seek help from a trusted financial adviser like Ed Butowsky to avoid these financial risks.

    ReplyDelete
    Replies
    1. Please try Free and Honest Intraday Secrets, Strategy & 100 Trending Scripts Daily !
      https://youtu.be/k5_XNt71ezw

      Delete
  7. Good blog, very useful content and information shared .you can also Check nifty

    ReplyDelete
    Replies
    1. Please try Free and Honest Intraday Secrets, Strategy & 100 Trending Scripts Daily !
      https://youtu.be/k5_XNt71ezw

      Delete
  8. Win Exciting and Cool Prizes Everyday @ www.2vin.com, Everyone can win by answering simple questions. Earn points for referring your friends and exchange your points for cool gifts.

    ReplyDelete
    Replies
    1. Please try Free and Honest Intraday Secrets, Strategy & 100 Trending Scripts Daily !
      https://youtu.be/k5_XNt71ezw

      Delete
  9. It is really good to know the key points to remember especially if you are interested to invest. I think you should check out this video. To watch Ed Butowsky, Click Here

    ReplyDelete
    Replies
    1. Please try Free and Honest Intraday Secrets, Strategy & 100 Trending Scripts Daily !
      https://youtu.be/k5_XNt71ezw

      Delete
  10. I really admire this. I mean it really looks interesting! Very nice, write up. Anyways it’s a great post. Thanks for sharing this wonderful article ….
    This Website

    ReplyDelete
    Replies
    1. Please try Free and Honest Intraday Secrets, Strategy & 100 Trending Scripts Daily !
      https://youtu.be/k5_XNt71ezw

      Delete
  11. Investing in equity to create wealth has always been a very interesting topic that most people would like to talk about. I enjoyed reading the blog. Thanks!
    Custodian Wealth Builders Complaints

    ReplyDelete
    Replies
    1. Please try Free and Honest Intraday Secrets, Strategy & 100 Trending Scripts Daily !
      https://youtu.be/k5_XNt71ezw

      Delete
  12. Nice blog, thanks for sharing the information. I will come to look for update. Keep up the good work.

    wealth management boston

    ReplyDelete
    Replies
    1. Please try Free and Honest Intraday Secrets, Strategy & 100 Trending Scripts Daily !
      https://youtu.be/k5_XNt71ezw

      Delete
  13. Replies
    1. Please try Free and Honest Intraday Secrets, Strategy & 100 Trending Scripts Daily !
      https://youtu.be/k5_XNt71ezw

      Delete
  14. Replies
    1. Please try Free and Honest Intraday Secrets, Strategy & 100 Trending Scripts Daily !
      https://youtu.be/k5_XNt71ezw

      Delete
  15. Its good to be here, very nice post, the content is amazing, keep posting friend it will be very helpful for everyone, Thanks for sharing. I really liked it.you can also read Check nifty

    ReplyDelete
    Replies
    1. Please try Free and Honest Intraday Secrets, Strategy & 100 Trending Scripts Daily !
      https://youtu.be/k5_XNt71ezw

      Delete
  16. l Aways good to see, this was really a brilliant post. In theory would like to be such a good writer too. It takes time to create that brilliant and additionally real effort to make a brilliant article.

    Tips on Best Stock Advisory in India

    ReplyDelete
    Replies
    1. Please try Free and Honest Intraday Secrets, Strategy & 100 Trending Scripts Daily !
      https://youtu.be/k5_XNt71ezw

      Delete
  17. Thanks for sharing! This page was very informative and I enjoyed it. Wealth management Boston

    ReplyDelete
    Replies
    1. Please try Free and Honest Intraday Secrets, Strategy & 100 Trending Scripts Daily !
      https://youtu.be/k5_XNt71ezw

      Delete
  18. Welch & Forbes in Burlington, Vermont is a distinguished wealth management company that specializes in wealth management since 1838. It is SEC registered as Large Advisory Company. Its form of organization is Limited Liability Company and is BBB accredited. The amount of client funds and securities is 3,019,400,000 and has a 775 total number of clients and an asset of $4.0 billion. The company has been known for its integrity, accessibility and stability. It has never been listed under business suspensions, felony charges and suspension of registration.

    ReplyDelete
    Replies
    1. Please try Free and Honest Intraday Secrets, Strategy & 100 Trending Scripts Daily !
      https://youtu.be/k5_XNt71ezw

      Delete
  19. Its good to be here, very nice post, the content is amazing, keep posting friend it will be very helpful for everyone, Thanks for sharing. I really liked it.you can also read Check nifty

    ReplyDelete
    Replies
    1. Please try Free and Honest Intraday Secrets, Strategy & 100 Trending Scripts Daily !
      https://youtu.be/k5_XNt71ezw

      Delete
  20. Its good to be here, very nice post, the content is amazing, keep posting friend it will be very helpful for everyone, Thanks for sharing. I really liked it.you can also read Check option

    ReplyDelete
  21. There are many factors which influenced the development of Wealth Management. While much has been written on its influence on contemporary living, Wealth Management is not given the credit if deserves for inspiring many of the worlds famous painters.

    ReplyDelete
    Replies
    1. Please try Free and Honest Intraday Secrets, Strategy & 100 Trending Scripts Daily !
      https://youtu.be/k5_XNt71ezw

      Delete
  22. Its good to be here, very nice post, the content is amazing, keep posting friend it will be very helpful for everyone, Thanks for sharing. I really liked it.you can also read Check nifty

    ReplyDelete
  23. Its good to be here, very nice post, the content is amazing, keep posting friend it will be very helpful for everyone, Thanks for sharing. I really liked it.you can also read Check option

    ReplyDelete
  24. Thank you so much for giving everyone an exceptionally nice possibility to read from this web site. Of course, I am certainly happy with all the dazzling opinions you serve. Selected 3 areas in this post are undoubtedly the very best I've ever had. Check nifty

    ReplyDelete
  25. Thank you so much for giving everyone an exceptionally nice possibility to read from this web site. Of course, I am certainly happy with all the dazzling opinions you serve. Selected 3 areas in this post are undoubtedly the very best I've ever had. Check option

    ReplyDelete
  26. Thank you so much for giving everyone an exceptionally nice possibility to read from this web site. Of course, I am certainly happy with all the dazzling opinions you serve. Selected 3 areas in this post are undoubtedly the very best I've ever had. Check nifty

    ReplyDelete
  27. Thank you so much for giving everyone an exceptionally nice possibility to read from this web site. Of course, I am certainly happy with all the dazzling opinions you serve. Selected 3 areas in this post are undoubtedly the very best I've ever had. Check option

    ReplyDelete
    Replies
    1. Please try Free and Honest Intraday Secrets, Strategy & 100 Trending Scripts Daily !
      https://youtu.be/k5_XNt71ezw

      Delete
  28. At one stage or another, every man woman or child will be faced with the issue of Wealth Management. Given that its influence pervades our society, its influence on western cinema has not been given proper recognition. Crossing many cultural barriers it still draws remarks such as 'I wouldn't touch it with a barge pole' and 'i'd rather eat wasps' from so called 'babies', obviously.

    ReplyDelete
  29. Get all the tips of share market from the stock market analyst to get the profit from trading in the stock market. Check nifty

    ReplyDelete
  30. The visit was very useful for me. because i had got very important and attractive information about Nifty Future Tips and your content is really very good.

    ReplyDelete
    Replies
    1. Please try Free and Honest Intraday Secrets, Strategy & 100 Trending Scripts Daily !
      https://youtu.be/k5_XNt71ezw

      Delete
  31. You have a very good choice of image here for your blog. This really caught my attention and makes me read the whole article. Thank you so much for a smart blog.

    cash flow bakersfield

    ReplyDelete
  32. Replies
    1. Please try Free and Honest Intraday Secrets, Strategy & 100 Trending Scripts Daily !
      https://youtu.be/k5_XNt71ezw

      Delete
  33. Nice blog and very useful for investors thank you for sharing us.
    Silver Free Tips

    ReplyDelete
    Replies
    1. Please try Free and Honest Intraday Secrets, Strategy & 100 Trending Scripts Daily !
      https://youtu.be/k5_XNt71ezw

      Delete
  34. Please try Free and Honest Intraday Secrets, Strategy & 100 Trending Scripts Daily !
    https://youtu.be/k5_XNt71ezw

    ReplyDelete
  35. Another good blog here I found for good articles. Your blog is the best example of good writing skills.. share market tips

    ReplyDelete
  36. Great post. Its very interesting. Thanks for sharing. I also do investment in stock market in this firm Wealth Multiplier Services. They are giving good opportunity to invest money in stock market and giving average 50-60% yearly returns.

    ReplyDelete
  37. Great Post Thank you And Very Useful And Informative Article For Investor. I Am Found Very Useful Information For Stock Price And Wealth Management Delhi

    ReplyDelete
  38. Stock Market is filled with surprises, market movement is very sudden and out of the imagination. Only a person having good experience of a market can make a forecast about the market. One of the most prominent investing strategies used by investors is Market Timing. Thanks for this once.
    Commodity Tips
    Bank Nifty Tips Provider

    ReplyDelete
  39. On Monday (August 29, 2016), BSE SENSEX closed at 27902.66, up by 120.41 points or by 0.43%, and the NSE Nifty ended at 8607.45, gained by 34.90 points or by 0.41%.
    CapitalStars

    ReplyDelete
  40. Awesome Tips..Thanks for Sharing this Article about wealth management companies

    ReplyDelete
  41. Crude oil prices hovered near three-month lows on Tuesday in Asian trading, with investors waiting for key reports and data that may shed light on a supply overhang in the global market.capitalstars

    ReplyDelete
  42. Axis Bank fell over 2 per after the private sector lender reported a fall of 43.1 per cent in its net profit after tax at Rs 1,225.10 crore for the quarter ended March 31, 2017, on the back of higher provisions. capitalstars

    ReplyDelete
  43. India markets on Friday opened the session with modest gains and soon after opening it slipped in negative terrain and it remained weak for the major part of the trading session. capitalstars

    ReplyDelete
  44. Best Share Market Tips for Value Investors who are Interested Equity cash trading , equity future trading tips. Our share tips always help you to earn profit in Share Market

    ReplyDelete
  45. Asian stocks edged lower early on Monday following a slide by U.S. technology shares and the dollar rose ahead of this week's U.S. Federal Reserve policy meeting, with markets hoping for more guidance on the central bank's interest rate path.capitalstars

    ReplyDelete
  46. TODAY SUNTV FUTURE BUY CALL GIVEN @ 852 BOOKED @ 863 ROCKING CALL.. FOR MORE CALLS VISIT BEST STOCK FUTURE TIPS
    FOR MORE DETAILS ABOUT THIS CALLS PLEASE GIVE MISSED CALL ON +918030636442
    OR WHATSAPP ON 09179333088

    ReplyDelete
  47. MARUTI BULLISH ON 22 JUNE 2017
    TO KNOW LIVE BUYING LEVELS VISIT EQUITY FUTURE CALLS OR PLEASE CALL ON +918982086510
    OR WHATSAPP ON 09039542248

    ReplyDelete
  48. MARUTI BULLISH ON 22 JUNE 2017
    TO KNOW LIVE BUYING LEVELS VISIT EQUITY FUTURE CALLS OR PLEASE CALL ON +918982086510
    OR WHATSAPP ON 09039542248

    ReplyDelete
  49. ABB in talks to buy out L&T's electrical business.
    Capitalstars

    ReplyDelete