• vivekanand posted an update 8 years ago

    Hello friends, have you seen any one becoming rich by trading? No….. People become rich only by the portfolio they built. Have any one become rich by buying all the blue chip companies in their portfolio? No. Blue chip companies are meant for MF, DII, FII & Pension funds. These funds are interested in blue chip companies because of the dividend they are paid. For example, if an MF buy 1 crore shares of Blue chip then when the company pays 10 Rs. as dividend per share then the MF gets 10 crore. Whether this concept will be helpful for normal retail investors like us? No. We may buy 500 shares of the blue ship and we will get 5000 rs. as dividend. Is it enough? Is it worth our investment. So what matters is the growth of the share price. Not any other things like dividend matter to us. So we should build our portfolio with small priced companies which has the potential of becoming a multi bagger after 10-15 yrs. No need to worry whether the company is growing or not. If the small priced company which we buy now is able to exist for the next 10-15 years by default the price might have increased. But the question is how many small priced companies can survive in the long run of 10-15 yrs? We need to analyze that and include them in our portfolio. For example, when I started my step in stock market before 10 yrs no one is there to guide me. I am good in analysis. I bought many companies in my portfolio like Birla ericsson, Balrampur chinni….etc…But when I got some profit quickly I exited. Now when I see the prices of all these companies which I bought and sold before 10 yrs, all of them have grown 100-300% which might have made me as millionare. But, again no proper guidance, I came out of those so early. Even a cup of tea from 2.5 Rs. have become 10-25Rs.(depending on the shop where you buy). The same applies to the stock also. Money value depreciates and the material value increases. Therefore, the concept is earn money quickly in trading. Invest the same in building your portfolio by analysing and buying small priced shares. If the price of the stock is 25 rs. then when u invest 1000 rs., you will get 1000/25=40 shares. Incase, after 10-15 yrs, if the stock prices reaches 250 then 40 shares worth is 40*250=10000. If all the bonus shares, dividend, rights, splits are considered then it will worth more. In short 1000 rs. investment became 10000 (i.e.) 10 times more. So always the way to become rich is by building your own portfolio for long term. You can take any billionares like rakesh junjunwala, ashok sharma, Ramesh damania all of them became rich based on the few stocks they had in their portfolio. For example, rakesh junjunwala’s portfolio never exceeded 30 stocks. His net worth is more than 1000 crores. All the software companies he invested busted. But the stocks which made him crore pati is lupin, united breweries, titan, VIP industries. When he invested no one cared about lupin(medical), UB (alcohol), titan (watch), VIP (luggage). But these stocks converted him. Now, in the money he is investing in real estate in Mumbai and also he is producing movies. His first movie is English Vinglish which is super hit. Now Ka & Ki. Again super hit. The time difference between each movie is more than 2 yrs. He is taking is own time and not running behind anything. He waits until opportunity comes to him and makes right choice. Ramesh damani is running super market across india. So the concept is please go thru small priced companies then share the same in this forum. Everybody can analyze and post their views. Who knows after 10-15 yrs it can change our life’s together.

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