Rich is a relative term, hence, by definition, very few people can be rich! The most popular money-making ideas and methods may not work after all…
Investing in stock markets is a proven avenue to get wealthy, but there is a huge variation in results. One individual, just by investing in stock markets became the richest person in the world while there are many other not-so-popular stories about people who lost everything to the share markets. While most get carried away by the prevailing common sentiment, very few have the willpower to stick to the thumb-rules. Consideration of fundamental factors and those alone, often requires a contrarian approach
In the history of our stock markets there have been many instances where large number of investors, acting in unison, eventually destroyed wealth for themselves. Be it the IPO craze in the 90s and again in the early 2000s or be it the Technology stocks that people thronged to in 1999, a few months before the Y2K euphoria abruptly ended with a huge crash in the sector – what the majority participants did, soon proved to be wrong. In 2007, many investors had become fond of real-estate stocks, the sub-prime crisis in the US that followed made global stocks tumble and while other sectors recovered fast, these stocks haven’t been able to recover even after a decade. Sometimes investors have blindly picked up stocks favored by star investors, who were later found to be involved in financial scams bringing those favorite scrips down sharply
The common investor is cluttered with the noise of stock-tips, sector recommendations, penny stocks, bluechips, smallcap, largecap etc. There is also this popular urge to try and time the markets. The unknowingly-collective decisions to buy or sell, tend to be the exact opposite of good timing!
Helping you filter the noise – Simplymutual