Its very facinating to see the movements in the stock market (Indian). I feel I am well informed and in tune with everything. But.....can anyone claim that ?
There was an expert who had done some analysis and stated that historically in any given 5 year period the stock market has always been the best performing asset class. For those who want simpler lingo....asset class means any form of investment that gives returns. I will wait for another three years before writing to that gentleman that his theory is a piece of shit ;) Although I do feel he is right.
Where the heck if the other part of the title linked to the topic ? Well my dad used to say that stock investment is just 'satta' or gambling. He used to be a day trader and never really invested or researched a company before trading. He used to go to our broker, look at the screen and buy anything that was going up and sell it immediately after the price went up a little more after he bought. Well, obviously this method could work on a few days but then days like those would always be just that - FEW. Over the last year however, I have been successful in changing his opinion. He has begun investing in certain companies that have good potential over the long term.
There are somethings all of us (aam aadmi) should learn from the few intelligent and sane investors out there. One gentleman a while back stated - Be greedy when everybody is scared and be scared when everybody is greedy ! In other words, when you see every single person you know or don't buying stocks of a company its time you stay away or better still, sell. A classic example would be the Reliance Power IPO - whole world knows what happened there. It became Power OFF toh India OFF !! Just to inform you the name of the gentleman whose great words I have mentioned above is Warren Buffett.
Until next time....happy investing !!
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