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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.

            We have seen that only 10000/- can grow to crores of rupees in just 20 years. It just required to have that conviction to hold that stocks for such a long time. 10,000/- is not a lot of money for none of us. So, its just required to think like the promoter of the company.
            Investing is just so simple and mathematically proved. If some one can earn 10lakhs in the age of 30 and invest in such a way that it will double in every three years. He can grow it to 100cr in his next 30 years. Just think at the age of 60 you have 100cr in your account. (if required I can give you all the calculation and method of doing that). If you again invest that 100cr at the age of 60 for next 30 years just think how much it can grow!!! The final amount at the age of 90 will be 124756.11 cores. (all are proven method) all of these due to the effect of Compounding. This is why Albert Einstein said that “Compound interest is the eighth wonder of the world”. Those who learn it, earn it otherwise lose it. Sometime such question arises in our mind that What I will going to do with this money at the age of 90. According to me, we earn from the society and its our responsibility to give back to society. If we see some famous philanthropist like Jamsetji Tata, Bill Gates & Melinda French Gates, Warren Buffett, John D Rockefeller, Ajim Premji, Ratan Tata they give back their wealth to the society. If you don’t do that just think for your next generation, they can create a huge business from this capital.
            We came to know that wealth can be created, but the question is how? I have found that it is necessary to invest in a good business. With having deep understanding of it. Everyone has different parameter of analysis of business. I also have some but other one cannot be got comfortable on that. So, it is necessary to build your own. For me, to invest in a company it is necessary to get a good story behind the company. If we see the past history we have seen that, in HDFC Bank all the banking system has transferred from govt to advance pvt banking system, in Hero motors all the customer from scooter to motor bike, in Titan all the customer has shifted from mechanical watch to quartz watch, In Bharti from landline phone to wireless phone. So, for me it is necessary to understand the story to invest heavily in that company and to wait for a long time.
            Stock market is for all of us. Here we see win-win situation. If I make money it doesn’t mean that someone can not make money from that stock. Let participate in it heavily. But for that we have to know all the details of the business. At the last as Warren Buffett said- “The best investment you can make, is an investment in yourself…The more you learn the more you’ll earn.”

- Shaishab


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