New FREE Feature in our INVESTORS SERVICES:
Alert for Negative List (Wealth Destroying) Stocks-
Majority of investors have had the bitter experience of getting stuck into stocks that go down consistently and considerably from their buy price and seldom recover, or recover above their purchase price when it has been so many years that they have already lost on inflation, and interest rates on their capital as well as the opportunity costs that they would have earned out of other investments.
At MEGHA INVESTMENTS AND RESEARCH, our approach to investing has always given paramount importance to Warren Buffets Philosophy of investing. He said: Rule no.1 is to Never lose money and Rule no.2 is to Never forget rule no.1. Our version of this rule can be: “Return of Capital is important than Return on Capital”.
Times and again we have always Alerted our visitors about the stocks that destroy their wealth. From now we have made this approach and part of our activity as –A Feature in our “Services for Investors”
Thus from now on any one activating any of our “Investor based Services” will get this Negative List of WEALTH DESTROYING STOCKS probably with lower targets as well.
o Some of you might say that this thing does not need no ‘why’ explanation.
Any way, we are giving some points,
o By most of the medias and analysts, investors get buy recommendation but they rarely get the sell or even further ‘exit’ or completely screaming avoid alert. So in such scenario, the common investors badly need such alerts that we intend to provide. Because the HNIs, or institutional category gets some of such alert tip but the common investors are sometimes purposefully and many other times un-purposefully kept devoid of such a crucial part of stock market advice.
o One of the first and basic thing to understand is that ‘stocks do destroy wealth’ and that ‘knowing WHAT NOT TO BUY’ is many times more important than Knowing What To Buy. Because ‘Market will always throw Excellent Investment opportunity in front of you from time to time, but you need to have capital to grab this opportunity. But suppose you are stuck in wrong stocks, then what? Then you will lose these opportunities and INSTEAD as well lose on inflation, interest, opportunity cost and many times with ‘wealth destroying stocks’..your capital as well!
o This also goes with general public’s attitude of ‘TAKING STOCK MARKET FOR GRANTED’. They glibly think/believe that “It is easy and almost an ‘automatic’ task to earn money in stock markets…and that Long-term investment of any type is always profitable..” Many of these types of people invested in Reliance Communication at Rs.800 and 600 and also may be holding India’s largest private company Rel Ind for last 2 years…and eroding their capital by 80% in the first case (Rel Comm) and standing with zero return in the 2nd case (Rel Ind) and loss of huge opportunity cost during the same period’s smart run up in markets. (The 2 stocks are just examples and not particular cases) The point is that ‘IT IS A MYTH SOLD TO COMMON INVESTORS BY ‘CAPITAL MARKET INDUSTRY’ THAT STOCK MAREKT IS ALWAYS AND ALWAYS BENEFITIAL IN THE LONG-TERM’. It depend on the stock you are invested in. And ALL THE stocks are definitely not the right stocks!!
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