Retrospection
Most of us would have come across the terms Sensex and Nifty in the newspapers, news, business magazines. I used to wonder what exactly is Sensex, and why did it crash? How is it related to the economy? And how would I get affected by it crashing or zooming?
Nowadays, you can search Sensex in Google and get loads of results enough to confuse you. The terminology used is too technical. It’s not that the answer is impossible to understand, but it could be explained in even simpler terms. You can check this out either in Wikipedia or any other finance website. Many of you might get some idea, but is it understandable to under-graduate or secondary grade students? There are many websites providing redundant information on stock markets, investing, and financial planning. My website www.valueinvestingonline.in is not one of them; it is comprehensible to everyone who visits the website.
My Experience
To be honest, when I was 23, I searched Sensex for the first time in the year 2013. I did not understand the content on Wikipedia. Hence, I felt that this is out of my scope and I moved on. Even today, this is what happens in most of the cases of first-time readers.
If I had made an investment in the Sensex then and held on to that till January 2020, the returns would have been 210%, Compound Annual Growth Rate (CAGR) of 12%. Now, compare it with the interest rates of fixed deposits in any Bank, around 6.25% in a year.
Just investing in the Sensex, which does not require any knowledge on Stock Markets can double the returns on investments. You can only imagine the returns investing in a perfect stock with good fundamentals at the ideal price could have yielded over the same period. Well, it’s around 19.5% for Reliance Industries Limited.
What’s wrong with the available information?
Most of the finance websites provide so much unnecessary data, purposefully made to confuse an ordinary investor. After 4 years of experience in equity investments, I cannot make sense of some articles I receive on my mail from the proclaimed best financial websites.
How many of these websites mention the manipulations of the stock price in the markets? We may occasionally find a few articles after the damage had been already done, and the company getting delisted from Stock Exchanges.
As the legendary investor Warren Buffett once said, “I don’t pay any attention to what economists say, frankly, if you look at the whole history of [economists], they don’t make a lot of money buying and selling stocks, but people who buy and sell stocks listen to them. I have a little trouble with that”. These were the words from the greatest investor in the world of all time.
I do not know whether I am right or wrong in predicting the stock prices. I follow the approach with healthy diversification and solid Margin of Safety. Speculating the stock prices without any knowledge on its fundamentals is not the business of a Long Term Investor.
Why valueinvesting.online?
I will be sharing how common people without exemplary financial background or degree such as CA, MBA, CFA, etc. can also participate in investing in Stock Markets. Any person buy and hold shares, earn income, as well as play their role in the development of Economy.
How many people know that if they buy and hold the shares of good companies and government bonds, they can actually contribute to the growth of the economy? Almost all the banks you deposit money do that. But a common person is afraid of losing all his or her fortunes investing in Stock Markets. It will certainly happen if you follow the advice of people who offer a margin of 20 times for trading. I also provide information on the difference between investing and trading, and how you can benefit from both.
Typically, I collect the content from various sources, purge all the redundant data. I include my personal valuation and post the appropriate content on this website. Even a reader with no knowledge of Stock Markets shall understand. I try my best to make the content as simple as possible. You can find the latest posts on the Home page.
The content is presented only to educate the people on investing in Stock Markets and recognizing the traps set by unscrupulous market participants. I do not personally recommend or rebuff any stock. You should consult a certified financial adviser before investing in Stock Markets. In case of any queries and other information, you can reach me via my email ID.
