Ownership – most important consideration for investing
Let us re-phrase the title at the very beginning — Ownership is the most important factor, it is the ONLY thing you should have in your mind before, at the time and after investing. In fact, we believe that this is the only criteria why anyone has ever succeeded in the stock market. You will find endless literatures, quotes and views on this subject but through this white paper we would like to clarify on few basic points which justifies why this is the “best criteria for investing”. It is also the criteria to decide exit.
Think about your business or profession. We don’t monitor daily gain or loss; we always think long term, we see how much profit we can generate, we develop our USP, we check honesty in our team members, we don’t do irrelevant diversification, we see whatever growth we achieve is maintainable, we grow our market share, we don’t do business which doesn’t suit our religion or ethics and so on… In some cases, we shut the businesses even into losses because that is the best option available. If you are doing this, you are doing good business and for that matter profit is natural, growth is confirmed and mental peace is guaranteed.
Investing is like becoming a partner in Business which you have selected with the above criteria…
All these are the criteria which every reasonably good analyst or investor are looking in the company before investing. People can make money in the market by participating in good business for longer period like the owner and not by becoming speculator who looks at the market price every day.
Be a Businessman, Be Owner, be an Investor!!!!
“I am a better investor because I am a businessman and a better businessman because I am an investor” – Warren Buffet