How people hilarious about their money
Why I’ve wrote on this topic? Recently I noticed many people are worried about their investment in stock market, so people who asked me about any their portfolio I’ve noticed something strange! Like they don’t about X company and they invested in this company, they don’t know about inflation, select mutual fund based on just name or any recommendation. Second main thing I’ve observed that people don’t ready to start with small investment, people thinking that 5,000–10,000 SIP will not change their life so my comment is if you not start with small then you will not have small amount also in future. Nothing wrong with start with small amount but point is you have to increase your skill, knowledge and then earning, it’s ideal to increase SIP every year 10–15%.
There are mainly two types of people:
1 Philosophy of Spending people: They Spend first what’s left invest
2 Philosophy of Investing people: They Invest first what’s left spend
Income structure: Income 100
Always remember, “Profits are better than wages, Wages make you a living, Profits make you a fortune”.
People portfolios are down more than Indices, point is not that but you have to check and know in which businesses you’ve invested because ultimately that work, if business isn’t generating free cash flows from operating then how stock price increased value addition wise. So invest in only what you understand rather than Fancy investing.
If you are investing in direct stocks then you must check ROCE, Free cash flows, sales growth, etc. main thing is business management because business is run by management not by shareholders. If you are investing via mutual fund you have to check expense ratio, peer returns, in which stocks mutual fund has invested, portfolio turnover, alpha, beta, past returns (which not defined future returns), etc. Also, for who investing in FDs have better options in Debt fund, bonds, G-sec. etc. You have to check all things before investing because money is yours no-one will give you when you lost it. People also ignoring inflation like hell, Inflation is the main player of investing game. Now-a-days you must have listened about INR hits all time low of USD. So you have to increase you return with hedge your investing.
That’s for today, Thanks for reading! You may connect with me at: ck@ckstocks.com
