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Showing posts from April, 2022

How People Made Wealth on Stock Market

When we enter in a particular market or a business, the first question that arises in our mind is “How this will be going to make money for me”? So, it is necessary to read about the history of the market to know how it has been working for last 3 to 4 decades to make money. Lot of people thought that making money in the market is a tough game but in reality, it is an easy game. So, lets see what I have found.                According to me, first we have to build that mindset to be an investor. An investor thinks for long term. Long means for 20, 30 years. Investing is nothing but sacrificing my present buying power to get huge benefit in future. If we see in Indian stock, we get various example how people made huge money for themselves. I studied few Indian stocks that made money for us in last 20 years. Let’s see if we invested 10,000 in these stocks in 1st jan,2001 what will be value of that investment in 1st April, 2022.  ...

Value And P/E

          In Assam, we have seen that lots of people talk about the stock price but no one is concerned about the valuation of the company. Everybody is talking about " aji 100 asil kaile 110 hoi jabo "; "  abbe 2000 eta share r dam emn dami company kom dami share ko " . But the main thing is not the price of the share; it is all about the valuation of the company. No one is interested in reading a line about what the fucking P/E, P/B, ROE, and ROCE are ?           Let's first look at the " dami share kom dami share " concept. Consider A and B to be two companies. A has a $100 share price and B has a $2,000 share price. Which one is " dami share kom dami share " ?? Just think for a  moment .If A having number of share 400 and B having number of share 20. In both cases, the market capitalization of both companies will be the same.  Market Cap= Share price x number of share   For Company A=100x400=40,000 For Co...