Deep Gajabe, Director, Imperial Money
Those who follow the financial media are aware of the concept that the market is too good, along with China fears, Evergrande, commodity crashes, market corrections and expensive PEs. When things are tough the media pays more attention to the financial sector.
If the media didn’t make up the stories, how would you watch or read them? it’s as good Agnipath. Responses to stories can do irreversible damage to one’s wealth creation goals and objectives.
In my experience making money from equity is easy but not easy. Adding value to a portfolio is another difficult task, because that’s when its cheap investor thinks “more is about to fall”, because that’s when things get cheap. Dil Hai Ki Manata Nahi because of Fear.
What is market? We think that you and I are markets, as long as there are humans on earth, markets will exist. How is the current market situation in India?
India’s stock market capitalization is expected to reach $5 trillion by 2024 from the current $3 trillion, making it the fifth largest in the world. A new IPO is expected to add market capitalization of around $400 billion in the next 2-3 years, a note read. Based on recent announcements from ‘New Economy’ Unicorns, the share-selling pipeline is expected to remain strong over the next 12-24 months –Source Bloomberg Quint.
As the cyclical recovery is expected to strengthen and inflows to support it, we remain overweight on our medium-term constructive outlook. In addition, the strong thematic appeal and growth potential of new economy sectors underscore our approach. If we miss this opportunity Zindagi na milegi dobara.
Volatility and managing ourselves means we have to learn to ignore the concerns of the world. We have never experienced a time when nothing else was happening, which is very rare. you have to be Bahubali.
If you have the emotional maturity, building wealth is not difficult. Making money is not difficult; Emotions are far more challenging to manage. Individuals without emotional maturity are less likely to build wealth, but they can also lose it. This can be accomplished by following some basic steps –Taare Zameen Par.
There is a lot of similarity between the markets and heartbeat graph so we have to decide whether we need to live in living asset class or flat or dead asset class, I’m alive my
The 4 key principles of wealth creation are 1) Long term orientation, 2) Patience 3) Discipline 4) Timely asset allocation
Even sometimes there is no return for four and a half years and suddenly you get 20% CAGR in last 180 days of 5th year.
India will grow and do very well in the next few decades. Consumption population of 135 crores is improving, cost of living is increasing day by day, suggests that the story of goods and services will attract more profit and have better ROCE in the books of high quality companies. However, you need to decide whether this profit is to come into your pocket through the shares of those companies or through the mutual fund route in your portfolio. it’s true like PK
This will be reflected on corporate performance and therefore on the stock markets. If you can correct this broader picture, why worry about day-to-day news or short-term outlook?
Successful investors take a broad view of the future and learn to ignore everyday volatility. Equity is there for you only if you have faith in the future. As I mentioned with the statistics, only a small percentage get rich from the markets. These are the ones who have the patience to live through the ups and downs, follow the investment discipline despite the bull and bear markets and stay invested for decade or even decades.
For most of us, equity is the only way to build financial independence. Bhag Milkha Bhag. Getting rich from the market has never been easier.
I am trying to make sure that you all make big wealth out of the markets in the long run. If you can last long enough, wealth creation will be taken care of automatically. This is the real story of the market Baghban.
Views are personal: The author is Deep Gajabe, Director, Imperial Money, Nagpur
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