Golden Tip To Succeed In Stock Markets | Share market basics for beginners

Golden Tip To Succeed In Stock Markets | Share market basics for beginners| 


Golden Tip To Succeed In Stock Markets | Share market basics for beginners

Warren Buffet says’s

“If you have more than 120 or 130 I.Q points, you can afford to give the rest away. You don't need extraordinary intelligence to succeed as an investor.”

Friends, do you believe that to make good investments and earn profits from the markets you need to be super intelligent with an IQ of around 150 160.  

Friends we don't think so, you've got a wrong thought process.  Just like to run a good business, you need to have a good business sense.  

Similarly to invest in stocks you need just a good stock market knowledge.  You need to be smart not very intelligent.

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Warren Buffet is saying exactly the same thing that, if you have an IQ greater than 120 to 150.  

You can sell 30 points to someone else and still invest very well in the stock markets.

Now let us understand this with an example. Friends whenever I visit any supermarket shop, nowadays I'm seeing a trend. 

These shopkeepers are abusing D-Mart like hell and why because since the last one or two years people have been buying the monthly groceries and other items from D-Mart.

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Golden Tip To Succeed In Stock Markets | Share market basics for beginners

Why because things are super cheap here and you get everything at one place from biscuits to a TV.  

The company follows an ownership model, they either own the real estate of the stores or they are leased for 30 years. 

Mostly they're owned.  And since real estate leasing usually eats up to 4 to 6 percent of revenues.  

The ownership model has kept costs low and has led to increased revenues and this benefit is indirectly passed on to the customers.

All their stores are excellent locations. You will hear every person saying that if you go to D Mart, you at least need four to six hours to complete your shopping. 

The strategy of low margins and high turnover has worked very well for D-Mart. The company has some very good expansion plans in the future as well.  

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Golden Tip To Succeed In Stock Markets | Share market basics for beginners

So friends this is what we hear and see of D-Mart today and trust us you don't need to be very intelligent to understand this trend.  

You just need to be vigilant and have some commonsense.  So how has the D-Mart stock performed so far? The IPO issue price was 299.  The stock opened at 604.  

That is just doubled on an opening day and the current price of the stock is around two thousand rupees.  Friends the stock had to perform.  

Now Jason Zweig coats an anecdote about Sir Isaac Newton, way back in the 1720 Sir Isaac Newton purchased stocks of South Sea Company.  

The stock went eight times in less than six months. His exit timing proved to be a little wrong but he still sold all his shares by doubling his investment.  

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Now when the stock started moving up again like any other retail investor, he jumped into the stock again and bought it at its peak price the bubble burst the stock collapsed around 80% and Newton made a whopping loss of 20k pounds in those days.  

The markets didn't spare him either though he was very intelligent.  

He made a statement then that I can calculate the motions of the heavenly bodies but not the madness of the people.

Golden Tip To Succeed In Stock Markets | Share market basics for beginners

Golden Tip To Succeed In Stock Markets | Share market basics for beginners

So like Warren Buffett says that who invests in stocks you don't need a very high IQ or some critical business information or insider information.  

All you need is a good stock selection framework and discipline to manage your emotions, that's it.
  
If you have this, you are all set to make money in the stock markets.  So friends just remember these Golden tips. 

I hope It will help you invest in the stock markets.

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