Given the performance of the Indian stock markets over the last few decades, no one should have lost any money. It’s true. The markets are up 1.7 times over the last five years, 3.6 times over 10 years, 4.6 times over 15 years, 16 times over 20 years and 22 times over 25 years.
On the face of it, one would think that with such a high-performing market, all that an investor needs to do is just be in the market and stick to some basic rules like avoiding obvious duds and diversifying. That’s all that is needed to generate wealth. Even though this is fundamentally true, most investors stumble somewhere or the other. Many, perhaps most, get diverted to speculation and short-term trading under the influence of their brokers or now, by the general short-termist atmosphere on markets-related social media. Others don’t pay attention to basic research and diversification. At some point pretty soon, they make big losses and then either withdraw from investing or change course.
I believe one of the fundamental reasons why so many people have trouble investing in the stock markets is that they have severely flawed mental models of what determines a stock price.
Bu hikaye Wealth Insight dergisinin September 2023 sayısından alınmıştır.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Giriş Yap
Bu hikaye Wealth Insight dergisinin September 2023 sayısından alınmıştır.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Giriş Yap
Bad ideas, F&O trading and the market
Find out the mindset required to find success in F&O trading
Licence Raj Redux?
The import policy changes might take us back to the days of License Raj
How to do magic
Getting great equity returns sustainably only looks like magic, it actually isn't
Data protection and cyber security
The increasing need for cyber security is opening up investment opportunities
"Buying is dependent on pricing but not on timing"
Insights of a fund manager at PPFAS Mutual Fund
Pro vs Amateur
Can amateur stock investors be better than pros? Yes! Here's how
The dimming of Brightcom
Shedding light on irregularities at the Brightcom Group
First tryst with profitability
Find out if food aggregators have found a cure to their loss-making curse
Have We Crossed The Peak Of Inflation?
Find out if the present macro scenario calls for tweaking your portfolio strategy
Tomatonomics
The humour, the stories and what could have been done about tomato inflation