when people ask about how to invest in the stock market Warren Buffet doesn’t buy stocks, he always buys pieces of shares in business through the stock market and holds them for a long period to make consistent returns from his investments. That is why he turned 500$ to 144 million in Coca-Cola investment.
how to invest in the stock market
1. investing in the stock market is a great way to increase your
wealth and fortune in your life to achieve financial
freedom in this world.
2. so at the end of the article you’ll know completely how to
invest in the stock market. but if you quit learning in the middle
(or) beginning of the lesson then am not responsible for
your investing. if you lose money.
3. however you learn through our website and if you lose it.
4. if you feel like you learned more from blogs and books
about investing, then why you didn’t become
more successful in investing.
5. let me challenge you, you’ll be more successful at the end of
the article, there is no fun in business so let’s begin and
start to learn how to make the investment.
value investing: Warren buffet
6. especially did you know who is warren buffet, if you don’t no.
ok no problem, he is a great investor of all time and made a
billions by investing consistently in the stock market.
but one thing is he is not a stock investor, buffet loves to
invest in business, real estate, bonds, and even in index funds.
7. Warren Buffet more than 50 years in every interview,
media, and also in his shareholder’s letter, thinks the stock is like a business.
so when not everybody somebody here this sound, they suddenly
started to tell
readers; 8. Yeah, yes always think stock is like business.
author; if you think of stock like a business then you must be a millionaire now,
how much did you make? are you super rich? Do you make
your fortune in the stock market?
9. if you say “yes”, then one day am 100% sure you are going to
lose your entire net worth in the same stock market.
readers; why?
author; because now only you accept, you made your money in the stock
market.
10. buffet didn’t make billions on stocks, he made billions in business
by investing consistently over long decades .then Then you feel
like
readers: no.. no… no..I can’t wait for decades to make money.
author; 11. well you don’t have to wait for many decades, let me come
to the conclusion and I ask some more questions to you and
tell me the answer.
Art of Investing
12. author: for example, you decided to buy a business in your passion niche. and let’s say you only like to buy a business in your own town (or) city, so now you’re in the home, what do you do?
13. you come out of your house take a car and search for the best business to buy in your town, you search the whole day. but you still didn’t find any wonderful business.
readers; what? what does mean wonderful business?
author; well if you love 100% one business and you can able to fully understand that business, which is called wonderful business.
15. so on the day you didn’t find any business like that, so you keep your money yourself and come to your home on the day.
16. From and next day onward, for one week you hire a lot of brokers
to find wonderful and excellent business for you, your searching
over and over again but you didn’t find your wonderful business
for 2 months.
17. under those circumstances you suddenly think;
readers: how long I can keep this money to invest, I can’t keep my money with me. for
a long time, so I have to invest in something now, I have to make some money from any of the investments.
your investment decision-making
18. so let’s say, now you have changed your decision, you decided to
buy some land and sell in the future Again you are hiring a lot of brokers to buy the best
land, then you got a lot of wonderful lands and with high brokerage
fee, then you suddenly searching for the best broker with a low commission
fee.
19. after a long time of searching you are not invested in the lands,
now only you find the best broker to invest in lands and you again
searched for lands to buy, then finally you buy one land for
10,000$.
20. after you bought the land you realize that your friend also bought
the land in the same street for 7000$ in the last month. the value of the asset is 7000$, but the price is 10k$ is currently. clear your friend bought the at value.
21. if you little bit confused then don’t worry I’ll make you clear . the asset was
sold at 7000$ last month, but now in the current month, it is selling at 10000$. however, your friend buys the land at the value, so he can get more profit in the land when compared to you.
time to increase wealth
22. author: what do you do? you can’t do anything. well you only decide to sell the
land more in the future, because if you sell it now, you’ll end up with
7000$ and however you lose 3000$ .once you decide to sell in the future.
23. then after five years later someone asking your land to buy, you offer him 25000$ and he finally asks 23000$, but you don’t want to sell and you decide to hold for again 5 years , so after the total ten years you’ll sell for 100k$ .there is bulk profit.
24. with this in mind you’re happy with 100k$ instead of losing the 3000$ before the ten years.
you’ll still don’t no what’s speculation
25. so now we think about what happen if you sell it before the ten years. you
lose 3000$ and end with 7000$ and your investment capital decreases,
then you are motivated and suddenly think of starting a business.
26. occasionally if you start a new business with 7000$, you fail
and try sometimes. then you quit it.
readers; no….no…..no…. how did you tell me I quit it? am a successful person.
author: then why did you quit the investment?
27. what proof do you have? you’ll never quit the business? once, even if you cannot
invest without quitting then how did you run hard running business
without quitting ?
28. you really can’t be successful, but even if you made the investment in
the land before 10 years , you would be successful now . but now
Do you think am convincing you to invest in the long term, no you wrong
am convince you to invest, not to speculate .
29. so in the next topic we see how much fun we have, when investing
in the stock market business. when comes to investing in the
stock market don’t do the business with stocks because some
people think warren buffet told to think stock like a business .
29. however you have to invest in business like amazon , apple,
google etc…. the list is endless because they are business.
but index funds, mutual funds,s and p 500 are not business
30. well this fund’s growth rates are very low so you have to determine
your wonderful business to buy it , in the next topic we will go very
deeply how to behave like a investor .
31. if you’r new beginners to invest through market don’t worry i’ll
teach you in coming chapter so let gets start to learn about
investors actions in the stock market.
behavior of investors
32. consequently when comes to things about the stock market
your mind changed irrationally because of fear, however
if you new beginner then you don’t know about irrationality,
just simply try yourself one time to invest in stock .
33. you automatically started to get fear during the investment
, if you are not a beginner then don’t worry because you already
experience it.
34. warren buffet said “risk comes from not knowing what
you’re doing ” think about that always if you don’t no
what your doing in the stock market then you accepted
the greater risk yourself .
35. warren every time behaves rationally when investing in
business through stock market, that’s why he becomes
super-rich. then suddenly somebody have doubt about,
ok,
readers: first of all tell me what is rational ?
36. if someone doing everything with reason is called rational
behavior , when comes to mind, again someone think am
always behaving rational, then let me check you .
37. most of the people who are beginners, intermediate, and experts. don’t even no why they are selecting any type
of brokers , with this in mind they tell.
readers: am selecting because of they have good rating , more people
recommend them on internet and blah… blah…blah…
38. author: there is lot of other people reason , am asking why did
you selected ? if you selected any particular broker, is
they can satisfy your needs? your expected commissions?
39. they protect your money for life time ? how much are you
sure about them ? they can support you 24 hours anytime ?
you talk to them ? how much percent trust do you have in them?
40. when you have a reason for all these questions. your behaving
rationally. then lets go to second point of investing through
stocks particularly in business .
when you loss your rationality
41. moreover for example you find it wonderful business
then you buy it some share of the business through
stocks market . if stock suddenly rise tomorrow ,
than you’ll be more greedy and think to sell.
42. otherwise most of the time if stocks start to fall what you do ?
you got high level of fear you can’t handle it , then you
think am going to loss my all money.
43. let me check your rationality , did you remember you have buy the
land and you missed to buy at value . while, when
you buy the land, why not you can sell the land with loss ?
why you sell after 10 years? what is the reason?
44. if you have a reason, then tell me why you did want to
sell the shares of the business without reason in the stock
market. when you having loss ? if stock falls why do you start
to fear without reason ?
45. you got land for 10k$. if land price fall to 5000$ , you’ll
know the value of the land is 7000$ . then whyn’t you
can buy more land for 5k$ ? if you want to buy it?
46. if “yes” then why not you buy more during fall on stocks?
when does business share fall under your investment? why do you have
fear?
readers: what you do if stocks go bankrupt after i bought?
47. author: than again i ask you some question why did your business go
bankrupt ? you didn’t buy wonderful business ? you didn’t
understand that business? you buy without reason ?
48. why did you buy without reason (or) fully understood ? why
you behave more irrationally? why did you lose
consciousness? you don’t no what the value of the business?
you didn’t read your company shareholders letters ? you
didn’t analyze fundamental statement of the business ?
49. tell me the reason? but why did you buy the land with reason
on the real world, then why not buy the business
with perfect reason?
50. why not you sell the share with reason? you analysis during
when you buy land , then why not analysis during buying a business
through stocks?
51. moreover i ever tell you to follow the same process , what
you do when buying land in the real world? what
are the questions you have learned through this blog? ask yourself every
time when before start investing .
52. if you don’t have any answer for rational question . let me finish this and learn
how to buy business. not stocks. finally, I take my promise
with you. you learn how to invest in the stock market
53. congratulation. now am going to recommend the best 5 book
to learn how to buy business through stocks .
readers:
no your cheating. you told that, at end of the article you will
learn fully how to invest in stock market .
author: yes i told it .
54. again am telling you learn it how to invest in stock market , but you
didn’t learn how to invest and buy business ? right? am
100% sure you can’t become rich buying stocks , you can
become rich easily buying business.
55. so now lets take a look , with my experience what are the
books can help you to achieve to buy wonderful business.
readers: no i can’t afford it to buy this books and i
already read it, and I know this .
56. author; then why don’t you implement it? if you want to become
super-rich through investing in the stock market, whatever
happen, read these five books again and again until you
achieve your goal successfully . buy and take action
now.
57. if you read it , don’t stop reading again and again until you implement
all this things. some body take this less seriously and start to procrastinate
this, then your life also starts to procrastinate, most people waste their
time by procrastinate, if you want to become massive rich than take action now .
if you have any more doubt about how to invest in stock market then contact me.
recommended top 5 books to read
Rule 1: The Simple Strategy for Successful Investing in Only 15 Minutes a Week!
his book will teach you how to buy the business under value , after
the learning rule one book , not forget to learn payback time phil town
book because it will teach how to make a big amount of money within
very short time .
payback time will teach you how to make the maximum amount of money
with in short amount of time and help you to achieve get your
investment back more than you expect.
Warren Buffett Accounting Book: Reading Financial Statements for Value Investing
after reading two phil town books still, if you have
doubt about fundamental this preston pysh
the book will teach you entire fundamental,on how
to read financial statement clearly to master your
investing.
The Dhandho Investor: The Low-Risk Value Method to High Returns
mohnish pabrai book dhandho investor will teach
you the world’s best method to buy business at
lower risk .
The Little Book That Still Beats the Market
that beat the market, finally, this book will
teach you how to beat the market in the long
run and give you great knowledge about
investing.