Right Way of Buying Stocks!

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!!

Realization

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!

Solution

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??

Comment below.