NEW DELHI: Investing in stocks is a tricky thing, and it is not everyone’s cup of tea. But the ones who have got it right say it is about a few rules and if you abide by them, you are most likely to master the art.
Morgan Housel this week tweeted that there are probably four-five things that are true to investing, rest everything is subject to evolution and change. Check out his precious tips.
Value investor Arun Mukherjee says that market rewards those who are patient. “Markets attract those who want to make quick money but rewards only those who are comfortable getting rich slowly,” he tweeted.
And with young investors coming to Street in hordes with the idea of getting rich quick, Mukherjee has another piece of advice. “Deferring your consumption in luxury and investing in equities in the first 10 years of your earnings life would give you an unassailable lead in wealth building,” says he.
But where do you invest? Well, he didn’t leave you hanging there. He had an answer for that too. Mukherjee listed out five sectors that can do well going ahead.
Now, with largecaps taking the back seat, midcaps and smallcaps are enjoying the limelight. But value investor and iThought co-founder Shyam Sekhar shared a little anecdote about smallcap investing and how it can be a tough job.
Talking about where not to invest, independent market expert Sandip Sabharwal has dropped a hint. He finds the financials in a tight spot right now with the end of moratorium set to play havoc on their books. “The moratorium book of Rs 10,00,000 crore across the financial sector at 10% of advances is still very large. The real picture will be known after the September results,” says he.
Lastly, technical expert CK Narayan believes there is no point timing the market. He says one should let the market guide her.