Skip to main content

My Learning so far from Indian Stock Market



Over last 3.5 years of my experience in the Investment Industry equity got the attention of investors for just 1 year actually real estate had stolen the show. Certainly 2014 was an exciting year for the Investment Industry. My experience in the market made me realized to some extent how market operates and how tezi creates excitement and brings people in stock market. People do more of talking and less of understanding when it comes to investment. Most of the frontline stories get popularity followed by news which plays a big role in grabbing people’s attention.

One more learning is that lot of people work on tips when it comes to investment so I thought why not share prospective on tips. TIPS! How people want tips! They crave not only to get them but to give them. There is greed involved, and vanity. It is very amusing, at times, to watch really intelligent people fish for them. And the tip-giver need not hesitate about the quality, for the tip-seeker is not really after good tips, but after any tip. If it makes good, fine! If it doesn't, better luck with the next. Since tip-seekers and tip-takers are invariably tip-passers, tip-broadcasting becomes a sort of endless chain advertising.


My key learning which I would share by this famous market saying that stock market is a place where wealth is transferred from Active investors to Passive. Being with the right people, buying right stocks and holding on to them has helped me in this volatile phase. Patience in the long term always pays and process of learning never stops.

Comments

Popular posts from this blog

Early Upswing

In my previous blog I explained about the first phase of Economic cycle that is the Initial Recovery which lasted for few months.India as an economy has moved to the second phase of the economic cycle that is the Early Upswing. This phase is characterize by high growth and low inflation which last for one year to several years. Here are some of the signs of Early Upswing Rising stock prices :- Stock prices across all the segment starting to rise. Primarily if we see sector wise all cement stocks ,metal stocks,specialty chemicals , 2 wheeler and 4 wheeler stocks ,FMCG space most of the stocks are making fresh highs. 2 things have given boost to the economy one is good rainfall and second is the 7th pay commission. Index is making higher top higher bottom and about to make 52 week high. Business confidence :- Business confidence is primarily rising which can be easily been seen with amount of deal happening in the economy. Assets whether its power sector,metal,Telecom...

Beyond Disruption of Covid 19

T he global economy has locked down and experiencing unprecedented uncertainty and volatility. Accordingly, it is ideal for everyone to ensure that we are mentally and financially prepared to face what lies ahead over the next few months. Managing Personal Finance : - In the waft of this financial fall let us look at the important aspects in our personal finances 1)    Emergency Fund : - It is utmost important that our emergency fund is kept intact. Seeing stock prices fall, we might be tempted to invest this fund but please don’t make that mistake. 2)    Asset Allocation : - One should stick to asset allocation, in this situation both equity and debt must be maintained as per one’s own asset allocation plan. 3)    Review Financial Institutions : - The second order effects of this unprecedented volatility will be felt on credit markets and fragile financial institutions. One must ensure, the banks we deal with have sound financial condition...

Businesses to Invest in

There are 2 main types of Businesses 1)     B to C: - these businesses can be classified as business which sell generic products and one which sell branded products. a) Generic Products : - These are businesses which are not able to create brand about of their products. Their only differentiation compared to their peers is price. High capital intensive, low margin and high working capital requirements to run it. Example Sun pharma b) Brand Products : -Companies which create brands have pricing power which help them past on the cost high raw materials to its customers without impacting their margins. Low capital high margin and usually low or negative working capital required in the business. Example Abbott 2)     B to B: - these are business's which deal with other business's. These are  a) Commodities business : -Commodities business make money when price of commodities rises. They are usually high capital intensive, highly vola...