Take my words, A Stock Investor will not Succeed unless he/she develops the Right Discipline!
10 years back I used to be a Newbie in Stocks. I was reading Warren Buffet books & researching with my own Value Research website. During the time I was relying on my friends & TV channels for advices.
The problem I had was, Every month I wanted to buy a new stock. I spend time on researching, shortlisting my adviser stocks, listening to market channels, buying every other scrip they recommend.
One Day: My ICICI friend will come & say there is a New Natural Resources fund, so Reliance Naturals will become 100-bagger. Bhum!
Chalo Invest kiya Reliance Naturals pe!!
Another Day: On TV Channel, Porinju is sitting & recommending XYZ stock, claiming having a Strong Balance sheet! I didn’t know how to check the balance sheet.. But I bought that stock too!
After 1 year: I have around 60 stocks in my account. During the time I met with a Senior Investor while I visited my broker Geojit.
Seeing my portfolio he shouted!! Are you mad?? Did you know anything about these companies? How you are going to track them?
He said, I will be never a good investor if holding big bunch of stocks!!
It took another 2 years for me to realize the matter. My portfolio went red during a Bear Market zone. NOW, I wanted to cleanup my portfolio.
The problem is, I don’t know why I bought certain stocks, nor I know the adviser to contact. Clearly big mess!
Years after, I started with a Concentrated Plan. Yearly, I will buy only 5 new stocks with thorough study of annual reports, collaborated decision making, QR tracking and for long-term holding.
The advantages were many:
- Easier to Manage since the stock count was small
- Installment Based Investing was possible as I can buy the same stock every month at different prices.
- More Time to Life Since the number of stocks were low, there were more time to my life, I found that stock investing is Passive!
- Same Portfolio Returns you will get the same portfolio returns for the properly selected stocks, even if it is 50 or 5.
I am providing the same my own invested stocks through the Paid Subscription Plan. This will be having tracking & updates. I encourage serious investors to purchase this plan.
Same Trouble I can See Today Too!
When people contact me over the Phone Consultation, I am seeing the same problem is haunting them too. There was one investor with 3 brokerage accounts and 120 stocks!! Who is going to read the annual reports, track the QR performance of 120 stocks per year?
So my recommendations are below:
- Be Disciplined. Reduce the number of stocks. Invest every month on same stocks until your portfolio limit reached.
- Know your stocks. Read about them. Find the scope of the sector.
- Wealth Creation. Stock Market is for wealth creation. Give time for the companies to grow. Let the Magic of Power of Compounding happen.
NOW you tell me, Should I create Youtube Videos to make people understand this??