If your still confused whether to invest in the market or no, take Finance for Non-Finance training from a professional who can help you to suggest which stocks to buy or invest in. You need to invest, if not now than when will you invest.
So welcome back to finance tube ladies and gentlemen i am vishal thakur and i would like to welcome you to breaking news yes friends the breaking news is that the share market has already started to do very well for itself so what are you waiting for did you buy that latest hot performing stock what you still still didn’t what are you waiting for jump jump jump
Right now well that’s all what my friends have been telling me since last about four months but i am still in dilemma what should i do the topic of discussion today friends is share market is doing well to buy or not to buy it’s a corollary of to be or not to be but what should we do now a friend of mine told me that he just happened to buy one stock of an old
Mill for 700 rupees in about two months the stock has crossed 1500 rupees and he ended up buying a brand new car out of the profits that he made from only one stock now i’m sure you would have heard stories like this so i was a little curious and i asked him that hello what does this company do oh this company it’s an old mill you know somewhere in central
Mumbai it is shut since last 40 years i said then then how come how come the share price has gone from 700 to 1500 in two months oh there’s a speculation around it that the mill has got a lot of land bank and this land bank will now be utilized for making residential and commercial towers for me i was taken aback i always thought that the share price is
Linked to companies performance when a company performs the share price rises and when the company doesn’t perform the share price would fall but out here it is maddening frenzy the rate at which he made money i’m sure at that rate a lot of people lost money i’m also told it’s a gambling day and it’s a zero sum game for 20 people to make money in the stock market
80 people have to lose on superb stories like new car and on horror stories like these which one to choose the dilemma still remains to buy or not to buy well i am not here to accentuate your dilemma i am here to solve it friends on a very basic level i must tell you that when the markets go up or markets go down there is no right time or wrong time for
Investing especially when investment is more of a personal decision rather than the decision of the masses we all know that markets go up and markets go down that’s not news how you invest in the market may or may not make news for you personally investing in stock market is dependent on three parameters and mind you these three parameters are so different
From individual to individual that for no two people in this world can have a same rational decision or timing to invest in the stock market let’s examine what are the three principles principle number one investment objective if this is technical let me simplify why are you investing a friend of mine told me that i am saving money for my child’s education i want
Him to become a doctor and 15 years from now when he goes into his medical education that will cost me a lot so that is an investment objective i am investing money for my child’s future if that is in place you will know when to buy what to buy second risk appetite how much risk can you take on an objective like this well the objective of investment is long term
And we all know that markets are cyclical in nature 15 year would roughly mean three market cycles and you can easily even out if you continuously invest every month for 15 years in few selected stocks so here since the period is longer and your investment objective is such it gives you some leeway to take risk but on the other hand if you are saving for your
Mother’s cancer operation which is due to come in next six months you hardly have any margin for risk let’s look at the third principle third principle is time horizon how long are you planning to stay invested of course it would spring out of investment objective but once you know the tenure of your investment and if you know that you are investing for a longer
Term then you can look at more perpetual assets if your investment is for a shorter term you can look at assets which mature in your period fixed deposits which are typically for three to five years would define a shorter term horizon perpetual assets like shares or mutual funds are used when your investment horizons are longer term now friends a lot of people
Come and tell me that i have a portfolio the market is going up is it the right time to buy or is it the right time to sell now i may ask you a question if you have a portfolio and if the market is doing well and you feel like selling answer my question what will you do with the money if you are telling me that i’ll put it back in the stock market then how
Bad you are right now you’re already invested and if you are saying that market is going up and i wish to buy tell me after buying what will you do with that stock are you holding it or are you just plainly speculating it is very important to understand that just because you can find out the prices of stocks on an everyday basis you have to buy or sell take
An example of property if you buy a property do you think of selling the property the next day or a month later or even a year later you are in for the long term right why oh because you can’t check property prices every day and also you plan strategize and think what will you do with the money that you realize from the sale of your property and in most of the
Times you trade it up for a bigger property so unless you have a well thought plan of what will you do with the money if you sell those shares you should not sell them irrespective of wherever market goes yes but once when your son or daughter reaches the age where you are saving money and investing them in the share market for his or her education comes then
You got to sell irrespective of where the market is look at market from a long term perspective of parking your money and growing it at a sustained rate where it beats inflation and taxes and nothing beyond the stories that you hear of 100 200 500 return in the short run and buying new cars by buying and selling shares are all speculations if you really want to
Burn your fingers and a lot more organs than your fingers you can engage yourself into that otherwise i may say that playing in stock market could be injurious to your wealth or on the stock market form i insist on writing that stock market kills your wealth to buy or not to buy is a decision but to subscribe or not to subscribe is not a decision subscribe now
Finance tube both sole proprietorship and partnership has one serious limitation both of these form of legal structure does not recognize your company as a separate entity in the eyes of law
Transcribed from video
Stocks | To Buy or Not To Buy? | Finance for Non-Finance Training By Finance Tube