Does Investing In Stocks Make You Rich? The Real Facts
Investing in stocks to get rich is true but there’s a whole list of things behind it and lot of patience. If you don’t have patience then don’t ask yourself “Does Investing In Stocks Make You Rich?”.
If you spent time on the market and you can certainly make tons of money and even reach this quota of 1 Million. There is no shortage of money in the stock market.
It’s all about controlling your emotions, holding the right stock, and think out of the box and in the future when it comes to selecting the companies you will be picking to invest in.
Treat the companies you invest in, like your own company. Yes, indeed. You’re part of it. You’re a share holder, no matter it’s just 1 share or 1000 shares.
Now rethink and ask yourself these questions,
- Why did you pick the company? What do you expect from it?
- Does the financials of the company amaze you? Is it any different from other companies out there?
- Do you think, there is any potential in the stock you picked? What is it?
- Did you determine the stock intrinsic value?
- How much volatile is the stock compared to the Index (NIFTY)?
- Do Promoters of the company you picked have more than 45% of holdings?
If you can answer the above questions, then congratulations. You’re picking it the right way.
Value Investing Can Indeed Make You Money In Longer Term
Yes, value investing can make you rich but you need to have those skills to pick the company from the early stage at dirt-cheap prices and later watch them turning into a fortune for you.
If you’re really a beginner and have a capital of about 50k to start with then this basket is all for you. These companies are of strong fundamentals and this basket gave returns of 99%+ returns in the past but that’s something not to brag about.
Not always, all companies will give that kind of results since every time there is no pandemic and quick recovery.
If you invest regularly in strong fundamental companies, they will grow over time and make you richer as you get older.
Please note that the above basket is made for educational purposes only and you should be aware of what you’re doing or get advice from your financial advisor.
How Exactly Can Stocks Can Make You A Millionaire?
In short, you need to be super disciplined. You need to keep emotions out of this investing game and after investigating the company you are willing to take part in, you just need to stay tight with it.
Stocks can make you millions and that’s obvious. You never know that if the company you investigated which looks clean and strong, gets even stronger day by day, and in return, the share price of that company can shot up to any price.
For example, let’s take an example of Avanti Feeds which was just Rs 2 in 2010, and now it is trading above Rs 480.
Why? It’s just because the management quality, right sector, vision, and strong fundamental of the company got right.
Those who hold and believe in this company and their study of stock got to keep the profits as well. So, yeah Rs 1,000 of investment 10 years back would now be Rs 2,00,000.
I hope you got a brief idea of what I am trying to say, so, the answer is yes. You can be a millionaire but you need to study the stock like a businessman and that is your business as well.
I hope you got your answer. The main key behind a good investment is that to study the company thoughly and invest. After investing, closely monitor the company growths, results and news in order to stay alert.
Even though some company looks good on paper but it always a good idea to keep monitoring the company and if the original reasons of why you invested in the company changes, you should sell and book your profits. Overall, it’s all about discipline and your thought process.
That’s all for today, hope to see you again soon. If you’ve not yet subscribed to our blog, make sure you do to get all our latest posts right on your email. Make sure you also join our Telegram channel to stay updated.