Home » Investment » Equity Shares » Top 10 Investment Mantras to Invest in stock market

Top Investment Mantras from world famous Investors to invest in stock market :

1.  Aggressive but with caution – Your approach must be realistic when you invest in stock market.There is something for being too pessimistic about a certain stock market condition. Moving forward with caution does not mean one stops investing.

2. Invest with long term view– If you want build your wealth, you have to give it time and be patient.Investors should do their own analysis to assess the risk-reward equation for their investment in a company or sector.If you can be a long term holder and buy things merely because they are cheap and have a good prospect and then if they get cheaper by more and hold on eventually prove correct.That is how you can do very well that can be a great advantage.

3. Don’t be emotional when you invest in stock market-There is a tremendous advantage to being unemotional when it comes to investing. Stock Markets are driven by emotions which direct us in doing the wrong thing at the wrong time. For example, when things go well people get excited and they want to buy more at higher prices and when things go poorly they want to sell at depressed prices. But, the logic is actually opposite. All the great investors are basically unemotional, they are analytical, patient and confident. Un-emotionality is probably the greatest advantage one can have as long as one also has the analytical ability to make good decisions.

4. It is wrong said that more risk makes more money– The stock market is largely driven by macro forces and, essentially, the same forces which impact most of the asset classes over these years. But, the world is uncertain and people should be cautious. Merely taking on increased risk for the purpose of gaining a higher return works for a while and then it does not.The world is too uncertain and asset prices are too high to use a pro-risk strategy.

5. High standard and integrity-You can be successful in the business world with integrity and high standards and fair treatment of all constituencies.

6. Invest in business not in stocks-If you are buying into a private business. You must look at the economic prospects of the business, the people in charge of running it, and the price must pay.

7. Invest only in business that you understand very well- Mr. Warran Buffett said that invest only in business that you understand very well. When you get a tip to buy a hot company that you do not understand, you should ask yourself: “If the greatest investor in the world will not invest in something he doesn’t understand, should I?”

8.Ignore Short term ups and downs-Mr.Warran Buffett say ignore short-term fluctuations in price. Investors approach must long term in equity stock market.

9.Do not actively trade in stock market-Mr. Warran Buffett believes that trading to much is a tax inefficient and costly approach to investing. Common people can’t understand the sort term market movements.

10. Do not over diversify– Investors who want to truly generate outstanding returns should identify a small number of great businesses at the right prices and invest a significant amount of their money in each of them.

(Sources: Various Investment Publication)

Print Friendly, PDF & Email

Leave a Reply

Your email address will not be published. Required fields are marked *

Name
Email
Website