STOCK 10000

March 30th, 2009 admin Leave a comment Go to comments

STOCK 10000

I am new to stock investing. Which are the best Indian shares where I can invest?

I want to invest Rs.5000--10000 / mnth in the stock market directly. I have also invested in MFs by SIP.

Re: Best Indian companies to invest

There is no better place perhaps than the Motilal Oswal Wealth Creation studies -they have been tracking long term performance of INDIAN STOCKS for more than 16-17 years now, starting in 1991. It will be informative and great education for you to download and study each of these reports

http://www.motilaloswal.com/Retail/RetailContents.aspx?ReportID=DE09E872-F1C9-44A5-A990-0E11F61CBE6B

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Well for beginners like you, MF investing is the best route. You are well advised to stick to MFs till such time, you are able to analyse for yourself

1. Which are the best stocks to buy and hold for the long term, and why?
Thats only half the story, but will be an important achievement by itself, if you can defend your choices.

2. The next half lies in knowing when to enter, i.e. at what price it makes business sense to enter the stock with a high margin of safety.

So its not about which are the best stocks for my rs. 5000-10000 sparable this month, but rather what is a good price to enter a Infosys, Bharti Airtel, HDFC Bank or a Gateway Distripark?? Do you get it:-) It took me 1.5 years to come to this conclusion!!

The principles behind these are simple, but its pretty hard work-understanding and researching stocks/businesses on your own!-buying a stock is like buying part ownership in the company -not the sort of lottery many people seem to liken it to. Remember you have to be able to beat the great returns that MFs are giving you -otherwise what's the use. And for enjoying teh MF returns, you hardly have to break a sweat!!

Having said that, this uncovering of GREAT STOCKS, before they become the next Infosys, or Bharti Airtel, is great fun and can be a thrilling roller-coaster ride. If you develop a passion for STOCKS INVESTING like I did 3yrs back, its worth all the trouble. Because when you buy at the right price and hold, companies with great competitive advantages, decent growth, high profit margins and return on equity, strong cash flow and balance sheets, companies with strong management, the stock market performance & returns are usually in line with business performance. I have seen all my 2005 investments becoming 3x-4x; even in this meltdown they are holding up 2x to 3x.

You have to have done your homework, then have the courage to enter the market at times like today's -when they start becoming available cheap, and then hold on for atleast 3-5 years -to see good returns.

So how did I myself start learning and develop the passion. All that I did and still keep doing to learn is shared, here

http://in.answers.yahoo.com/question/index;_ylt=AjyFlmbndCuR8PQV6csLQJuRHQx.;_ylv=3?qid=20080603021843AAZNQ1A&show=7#profile-info-QezVxoIKaa

And to that list you can add a very good book I am reading now
Pat Dorsey - The five rules for successful stock investing - John Wiley and sons.
I wish I had started with this book. There isn't a better step-by-step teacher of stock investing process!