If you have thought about investing or already invested in share market stocks and if you are like most people, then here are some possible ways you might have been thinking:
- Market is booming, so let's buy the booming stocks
- I 've heard a lot of people making lot of money from these stocks, so I'll invest in these
- Blue-chip companies will generate huge returns in the long run, so I'll invest in the best blue-chip companies
If you are a little more share market literate, you might have based your decision on analysis of investor reports, analysis of ratios like earnings per share, price to multiple to determine under-valued bullish stocks etc.
And if you are more rigorous in your approach, maybe you have studied technical analysis & based your decisions on technical analysis.
The fact is, none of these approaches provide a robust confidence level in share markets. There are plenty of stories of how people have gone broke, bankrupt by investing in share market.
And yet there are also stories of people who have made tonnes of money. People who inherit stocks that were purchased by their parents, grand-parents and which are now worth crores & maybe even 100s of crores. Even in the present day, there are plenty of self made crorepatis & millionaires, people who invested in stocks & made a fortune out of it.
How did this people find out which stock to invest in? Were they just plain lucky? Did they use fundamental analysis? Did they use technical analysis? Did they use investor reports?
Turns out that their secret is little known to common people like you & I. This secret is not taught in any of the investment trainings. this is not taught even in business schools & MBA colleges.
However, this is used by all venture capitalist, merger & acquisition specialists when they decide the valuations of companies. This is how investors like Rakesh Jhunjhunwala identify stocks that will generate gigantic returns. These are some very basic & easy to understand principles. These principles have stood the test of time. These principles work across the globe in all markets.
In my over a decade of time training & coaching over 10,000 people across 15 nationalities. Some of them are heaavyweights in the investing community & have generated mountains of profits for themselves.
I have had the good fortune of learning these principles. I have personally used it with my investment which I would a say has a very conservative risk strategy and yet has generated 12% return in one year, which compounded over 10 years would become 310% & compounded over 20 years would become 964% & over 25 years would become a whopping 1,700%.
And if you continuously invest more each year - can you imagine what that would do to your wealth?