Benjamin Graham is known as the father of Value Investing. Once, Benjamin Graham said “In the short term, the market is a ‘voting’ machine whereon countless individuals register choices that are product partly of reason and partly of emotion (consensus). However, in the long-term, the market is a ‘weighing’ machine on which the value of each issue (business) is recorded by an exact and impersonal mechanism (fundamentals)”.
There is a difference between an investor and a speculator. An investor is calm and composed while a speculator is agitated and disturbed. So, do you want to be a value investor or merely a speculator? Moneymindz, India’s First Free Online Financial Advisory
Having the following three attributes make you an investor while missing out these make you a speculator.
1. An accurate analysis
There has to be an intensive inquiry from your side. You have to find out everything about the company such as its past performance, its trustworthiness, experience in the markets, etc. Investing/purchasing a product just because someone advised you is mere speculation.
What you have to do is to take advice from an intelligent, trustworthy and experienced Financial Advisor.
2. Investment Assurance
You have to ensure your money is in safe hands. Investing doesn’t mean you put your money somewhere and expect it to grow magically. Investment is what and where your money for future needs. You are investing for a certain goal such as emergency, retirement, children education, children wedding and so on. Get Advice On Investment From Kuber Mindz or Give A Miss Call On 022-62116588
Hence, losing money should be the last of your list. Your prime target ought to be capital protection and capital appreciation.
3. Decent yields
Graham says that an adequate return means any rate or amount of return, however low, which the investor is willing to accept, provided he acts with reasonable intelligence. The idea behind this is that when you aim for adequate return (after having used reasonable intelligence while buying stocks), you are bound to receive an outstanding return. Moneymindz, India’s First Free On call Financial Advisory
Your money won’t grow in a short time. So never try timing the market. Remember, Rome wasn’t built in a day. No productive activity takes place within a short duration of time.