Mindset to invest in equity
Want to make a quick buck? – Equity may not be the right place
Confused…..Let us explain
A group of people had together decided to put money in a single stock based on some so-called ‘hot tips’. They were assured that the stock price will double in few months. What an incredible and an easy way to make quick buck, isn’t it?
So, of course, they invested heavily in the stock and more interestingly, based on expected profit, they planned a foreign trip with family. Now, I am sure you are curious to know answers to questions like What happened to that stock and whether they did go for a foreign trip, etc. Believe us, we are not keen in explaining what happened to their investment but we are keen to explain their approach to investing.
We are in the field of investing for more than a decade and have seen stock markets going through various ups and downs. We know from our experience that investing is not a cakewalk. There are no quick and easy windfall gains lying on the table. Investing in a stock is a serious business. It requires skill, knowledge, discipline and most important patience! We believe that long-term value investing approach is the safest and most profitable way to invest in stocks.
So, if somebody has lured you into stock market with get-rich-quickly promises, we would like to caution you. People who have followed this short-term approach have more often burnt their fingers. Sometimes very heavily!
We have one very important lesson to share with the readers. An Investor should not think stock markets as a place where they can earn quick profits and pay up for their near-term expenditures. Investor has to consider stock investing like co-owning a business with a patience in order to derive appreciation through growth in underlying businesses.
“The individual investor should act consistently as an investor and not as a speculator.” – Benjamin Graham