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“Ask and it will be given to you; seek and you will find; knock and the door will be opened to you. For everyone who asks receives; the one who seeks finds; and to the one who knocks, the door will be opened. Matthew 7:7-8

22 Apr 2017


Hi Friends,   In the stock market, the heart of the investment process consists of selection, timing, and price.  It is all a question of selecting the right company, buying shares in it at the right time and price, and subsequently selling them at the right time and price.  Success on the stock market will therefore hinge on your ability to take the  right decisions with respect to selection, timing and price.  However, these decisions alone will not enable you to make the amount of money you want.  That will depend on the following four factors:  (i)  the amount of money you initially invest; (ii)  the period over which the money is invested; (iii)   the rate at which the invested capital appreciates in value;  and (iv)   the income you receive from your invested capital during this period. Therefore, to achieve investment success you  should keep these four factors in mind while taking decisions on selection, timing and price.

But this is not all.  Successful stock market investing goes far beyond selection, timing and price.   It involves the setting of personal investment objectives, formulating an investment plan and adopting a suitable investment strategy.  The overall objective of every investor is to make money.  To go further, it is to make money at a  rate that beats the rate of inflation.   In other words, the broad objective of all investment is to increase, or at least preserve, the purchasing power of invested capital.  But making money cannot possibly be the ultimate objective of life.  You may not be interested  in devoting your life to the endless pursuit of money for money’s sake.  Your needs and requirements for money may  be limited.

 You may need money for financing your post-retirement period, meeting unforeseen contingencies, for medical treatment, for higher education of children, etc.  Once your objective is fulfilled you may not be interested in making more money.  Therefore, you have to identify and set your investment goals in the light of your future needs and requirements:  how much money you want to make and the period in which you want to make it.  Your success as an investor, therefore, depends on two factors:  (i) your ability to set the right investment objective, and (ii) your ability to achieve that  objective.

Good Luck.                                                              See You Later.

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