Equity investors have always been taught that time in the market and not timing the market will help in generating superior return. This is basically derived from the underlying fact that arriving at the right valuation for equity is next to impossible and investors are bound to miss an investment opportunity if one waits for the right price indefinitely.
Fundamentals of Equity Investment
The broad risks involved in equity investments are price risk and business risk. When one looks at investing in a new company, the business risk is high because of future uncertainties. However, the price one pays will be relatively low. So, the price risk is less. However, when one is investing in a profit-making company, business risk is much lower, but the price one pays is higher. Understanding and assessing the price and business risk is important to understand equity investing and generating wealth consistently.
Esta historia es de la edición September 26, 2022 de Dalal Street Investment Journal.
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Esta historia es de la edición September 26, 2022 de Dalal Street Investment Journal.
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