Intelligent Investor

There is a general investor mentality, he/she feels very happy when the stock price goes up /in the bull market adds more positions to their portfolio and when the stock reverses and gets down, they sell almost all their positions in the portfolio and wait for the market to bounce back. Intelligent Investor is the one who does not panic when the stock price comes down, infact they accumulate more of their stocks slowly in an SIP manner. They know a quality stock with their own analysis and when the stock price goes below their intrinsic value, they buy more to have greater "Margin of Safety"

"All of human unhappiness comes from one single thing: not knowing how to remain at rest in a room" - Blaise Pascal

"An Investment operation is one which, upon thorough analysis, promises safety principal and an adequate return" - Benjamin Graham

Imagine that two places are at a distance of 200 kms. If i drive at 100kmph, i will reach in 2 hours. But if i drive 200kmph, i can get there in 1 hour, only if i try this an survive. Which has the most possible way of survival. Now we need to ask ourself should i survive or reach fast ? Should i be an Investor or Speculator ?

There is a standard belief by people, if we invest in gold it will definitely go higher in price over time. One should also consider does gold gives an dividend or any extra bonuses ? Does Gold compounds over time ? If so at what percentage ?. It is always advisable to diversify our investment but believing gold is the best investment option and investing all money in gold is definitely not a wise option

An intelligent investor will consider the below inflation concept

• Let's say if a person gets 2% hike in his pay when the inflation is at 4% higher compared to previous year. The person will definitely be happy because he got a hike of 2%

• When the inflation is at 2% and if the person doesn't get any hike in his pay. He will definitely fell bad. This is nothing but the normal psychology of a person

In both the cases, the shortage is 2% in his pay compared to the inflation but the intelligent investor will look at these concepts

The wealth generation and investment doesn't depend on how much we earn, it all depends on how much we save. Each and every penny saved and invested in a proper channel now is the secret of wealth generation and happy living.

Have a Great Day

B G Nareshkumar