Professional investing stock market tips in India – The Father of value investing WARREN BUFFETT is the king of stock market . Who creates his wealth from stock market by making investment in stocks . He Started making investment in stocks from the age of 11 years and now have net worth of 110.1 Billion dollar . Buffett is known for his value investing he understands the market how it works practically which involves buying stocks that are undervalued by the market . He believes in long term investing .So here are some stock market tips in India which is been shared by warren buffet that you can also learn or apply in your investing technique which can helps you to create your wealth .
Stock market tips in india – suggested by Warren Buffett
According to warren buffet and Charlie Munger believes that short term market news are poisonous and you should stay away from it.
NOT TO BUY
Do not buy a stock buy business while you are investing do not think like you are buying the stock act like you are buying the Business and if you do not understand the Business then do not buy the stock . As you know warren Buffett and bill gates were a good friend but warren never invest in Microsoft because he never understand the Microsoft business .So it is good to invest in company in which you have understanding that how it makes his Business. So that you will be able take good decisions . when to exit when to increase the stake everything about the company
INVESTING IN A INDEX FUND
Most of the investor and individuals believes that the best way to own a common stock is through a index fund because there charges are minimal and the net results they produced are much better than the result delivered by the investment professionals without lot of research and headache you will get the better net results there but so many investors and brokers hate to admit it but for the retail investor the right thing is to put his money in index funds.
warren buffet says that bear market does not means investors is selling it means that investors are buying so during the bear market you should make the investment it is the best time to invest and there is famous quote of warren buffet
(Be greedy when people are fear full .Be fearful when people are greedy. )
So if you invest in bear market you will get the better valuations of company and helps you to make the value investing like warren buffet.
WHEN TO SELL
The best time to sell is when you see company is valued at higher valuations and the resulted expected returns are low but most of us follow the reverse process we buy the company at higher valuations and expected returns are low and sell the stock when valuations is low but expected returns is high
Jeff bezos once asked to the warren buffet that you are investing strategies are so simple and easy. So why other people do not follow this then Warren Buffett said people have lack of patience and most of them think that To become a successful investor most of the people think successful investor means high IQ but IT does not correlate with IQ . IF you have high intelligence to control the desire and don’t lose your mind when everyone is loosing during the bad times the more inactivity you do means the more intelligent you are maybe it is hard to listen and difficult to do when portfolio is getting down.
but this the harsh reality of investing most of people read it and go but in actual who follow this will become successful investor
Nifty Price to earning ratio
Nifty price to earning ratio is the ratio of current market price of the share divide by earning per share this ratio is important for the investor while they are about invest their money this ratio tell them that market is overvalued or undervalued basically yow will able to know that the current valuation of of the company is correct or not so if the price to earning ratio is less than 15 then market is undervalued and it is the best time to invest in the market and if price to earning ratio is more than 30 then it means you have sit on cash do not invest in market during this time or invest less during this time because there after market is going to correct and valuations will fall .
How to check nifty pe https://trendlyne.com/equity/PE/NIFTY50/1887/nifty-50-price-to-earning-ratios/
Market mood index
Market mood index is the index which shows the behavior of the market how market reacts for specific news and gets idea about what is going to be happen in the future basically it shows the fear and greed index how greedy is the market
This index have 4 sections extreme fear , fear ,greed , extreme greed if market is in the extreme fear or fear mode then you have to buy and if market is extreme greed then you have to sell through this you will be able to generate awesome returns
How to check market mood index https://www.tickertape.in/market-mood-indexcom
High paying dividends
If company is paying high dividends then it does not mean then company is good if company is paying high dividends then it is to attract the investor or trader to maintain the liquidity in the shares but in actual if you check the fundamentals of a company then it is not even making a profit but paying dividends just for example vedanta ltd .It pays high dividends to their shareholder but not generating the profit it is just to attract the shareholder but if company is not making the profit then it means it will not give you good returns
Generate 12% returns easilyhttps://aelnearn.com/earn-12-return-easily/
SO these are the stock market tips in India summarised from the investing books of written on the warren Buffett investing method or advice given by him .
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