Hello Friends,
There is a lovely saying that says "Trading builds capital; investing builds wealth". The wealthy invest and re-invest. Investing is the secret to building wealth.
What do you mean by investing?
Does it mean, you invest today and start reaping profits from tomorrow? No, Investing is nurturing a plant. It's like sowing a seed and allowing it to grow. You don't dig the ground daily to check if the seed is budding. If you do so, you will kill the seed. That is true with your investments too.
You cannot check your investments daily for profits. You must let your investment grow over time. Like a seed grows into a plant and a plant to a tree; so also your investments must grow in phases.
So how do you invest?
I know, you are wondering if it's really easy to invest. Yes and No, both. If you are a high profile investor, then you will have to plan your investments carefully. However, you need not be a high profile investor. I am sure Warren Buffett was not one either. It was all common sense.
So what is common sense investing?
Simple, as a question that has an answer as a YES. So, what is the question? We invest in a company that manufactures a product. What is the factor that decides the profit of the company? The sales of the product.
In simple terms, if a company is manufacturing a product that has a lot of demand, then the company will grow. If the company will grow, so will your investment.
The Questions to ask:
Will the product manufactured grow in demand or fall in demand? If the answer is growth in Demand, then you can buy the shares of the company.
Five years from now, Will we the day get hotter or cooler? Simple, It will get hotter. So, Should you invest in air-cooling companies? Yes, you should.
Five years from now will every one buy more cars and bikes? YES, Everyone will. So, should you invest in Automobile stocks? YES, you should.
Five years from now, will we eat more junk food? Yes, we will. So, should we invest in Junk food manufacturing companies? Yes, we should.
Will we Eat more Pizza's or more rice and chapatis? Surely Pizzas.... LOL
Now that's how you can invest as a simple person.
Ask the right question, and you will know the answer.
Yes, Best time to buy a stock is an art and it can be mastered by anyone...
Good luck in investing
There is a lovely saying that says "Trading builds capital; investing builds wealth". The wealthy invest and re-invest. Investing is the secret to building wealth.
What do you mean by investing?
Does it mean, you invest today and start reaping profits from tomorrow? No, Investing is nurturing a plant. It's like sowing a seed and allowing it to grow. You don't dig the ground daily to check if the seed is budding. If you do so, you will kill the seed. That is true with your investments too.
You cannot check your investments daily for profits. You must let your investment grow over time. Like a seed grows into a plant and a plant to a tree; so also your investments must grow in phases.
So how do you invest?
I know, you are wondering if it's really easy to invest. Yes and No, both. If you are a high profile investor, then you will have to plan your investments carefully. However, you need not be a high profile investor. I am sure Warren Buffett was not one either. It was all common sense.
So what is common sense investing?
Simple, as a question that has an answer as a YES. So, what is the question? We invest in a company that manufactures a product. What is the factor that decides the profit of the company? The sales of the product.
In simple terms, if a company is manufacturing a product that has a lot of demand, then the company will grow. If the company will grow, so will your investment.
The Questions to ask:
Will the product manufactured grow in demand or fall in demand? If the answer is growth in Demand, then you can buy the shares of the company.
Five years from now, Will we the day get hotter or cooler? Simple, It will get hotter. So, Should you invest in air-cooling companies? Yes, you should.
Five years from now will every one buy more cars and bikes? YES, Everyone will. So, should you invest in Automobile stocks? YES, you should.
Five years from now, will we eat more junk food? Yes, we will. So, should we invest in Junk food manufacturing companies? Yes, we should.
Will we Eat more Pizza's or more rice and chapatis? Surely Pizzas.... LOL
Now that's how you can invest as a simple person.
Ask the right question, and you will know the answer.
Yes, Best time to buy a stock is an art and it can be mastered by anyone...
Good luck in investing
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