Stock Market Investing Simplified | Abhishek Kar | TEDxLPU

[Music] so the other day i was speaking to a friend of mine i asked your uh you have a very good job he's working for a multi-national company and really earning high package so i just asked him what exactly you do with the money which you are actually making he said that i invest something in gold i put some amount in savings i put something into fixed deposit because which i do and in this entire conversation i was trying to look out when you would say stock market i thought yeah you must be doing that but strangely he wasn't and then i just asked out of curiosity don't you even invest into mutual funds and he was like haha usual i do some sort of investments but that's not a huge amount of investments in two before i could convince him the very second note which he actually ended up with was and come on i'm not a chartered accountant this is what we have to say i've not done mba in finance i've not done anything special in my life related to finance so i don't think so i deserve to invest into the stock markets and that's when that's when i realized that there's so much of misinformation around with respect to stock markets that i need to come on this stage and clarify all those things now you know what is interesting one line which he said your mutual fund risky hair but stock market was risky not just imagine people in our nation don't even understand that when you are investing by a mutual fund in most of the cases you are actually investing into the stock market now you must be wondering that's because ladies and gentlemen i belong to the same fraternity i am abhishek kirk an investor come trader speculating into the markets across the class for the past decade in fact more than that i ventured into various asset class like equity debt bond cryptos discounts nft etc and that's why i thought who better could actually address this issue and by this end of session you would be in a better position to judge stock markets so let me start off with this thing first you need to understand there is a very basic framework which if you understand you can really make a killing into the stock markets and i'm 100 sure at some point of time after earning money you get introduced to stock markets and you want to earn money so let me help you out with that the first thing which you really really need to understand is stop creating stock markets as if you are investing into equities what do you have to think you think that you are actually investing into business and let me take you through my example when i actually skim back and try to look into the past this is what happened almost six years back there was a lot of panic into the market i'm pretty sure you can judge the kind of product i'm talking about there was this fmcg company don't worry fmcg means fast moving consumer good anything which we consume on a daily basis or quickly so there was this fmcg company which was around the news there was some product which all the youth actually consume on a daily basis especially specifically students and hostellite dominated my punjab absolutely so a lot of people were a little scared oh my god why everyone was even panicking on the stock markets and selling the stock i thought abishik let's take a stroll around and check out what exactly is happening and you know what i observed when i went on the ground reality i found students were ready to pay three times just for the same product not just that the demand had actually increased our student because there was enormous amount of grace and that's when i thought that uh okay let's look around this company and i realized this company has a history of more than 100 years a big multinational company working hard for its pr and very good management and they were struggling hard at that point of time but i was pretty sure this is something which is going to happen on a temporary basis you know what i did purely using my common sense purely understanding how old this legacy is i invested into that company long story short that i'm sitting on 3x of my capital whatever i invested over there do you really think all this analysis required any sort of hardcore educational background do you think it requires some financial knowledge no absolutely no all it required is to think from a business perspective and my dear friends when you think from a business perspective you got to understand one thing for sure in order to turn profitable if something turns profitable before that it's well and good but mostly they take this time an average business goes to a lot of drawdowns in its entire lifecycle but if the management is good and if you understand the business it's fairly good so i tried to explain this to my friend he was like come on okay that's fine this was a valid point but can you just elaborate a little because my tata g he had invested into a banking stock which used to be one of the leading private sector banks and now it is available at peanuts i'm pretty sure a lot of you sitting over here can guess the bank let's not take the name okay so he told he had invested almost his entire money out there which was 5999 and he lost it and i am like okay let me explain you this when you are coming to stock markets forget about educational qualification you have to play with a sense of probabilities and i'm 100 certain a lot of students sitting over here have at least heard the name probability right so he said uh that game problem one problem was that they were not playing with probabilities when you're coming into equities when you're coming into stock markets it's a complete synth when you're actually putting everything right over there into one stock now just imagine for a while if the same person would have even picked four five more banks if the same person would have picked four or five more maybe fmcg stocks four or five textile stocks wouldn't he be placed in a better position of course yes the technical term for his diversification but i don't think this requires a howard degree this requires a stanford degree or any other degree for person it just requires a bit of common sense and playing with probability so it's very very important that irrespective of whatever asset class you pick you make sure you you're not betting on a single asset class so that's the other thing another important area was he just opened up the newspaper and you know what was there on the newspaper you are talking about stock markets and just now there is a news flash that this amount of money has been lost into the stock market and i said wait there is a big thing which goes around into the market and i call it the media fear media is always trying to sell you fear because admit or not we easily get sold towards fearful use and that's precisely what these media channels are good at doing and that's why the moment there is a war moment there's a drop situation these media channels will keep on hyping that thing but just think for a moment when they talk about these billionaires losing billions and billions of dollars do you really think that went out of their pockets no absolutely not it's a notional value in stock markets until and unless you press that sell button until and unless you exit out of your positions you are actually not making a loss so you need to first refrain from tips services and media channels with your respect i'm not against media channels but anything which is creating a fear in your mindset if you really really want to play a long term game because just imagine let's reflect back into the past two years back almost two two and a half years back something actually hit the markets called pandoric everyone was scared but then you know what even stock markets reacted because stock markets are the reflection of emotions which we all demonstrate and there was a panic everywhere everything was falling but do you know what at that point of time someone completely ignored the news channel if someone completely ignored all this pessimism which was out there and simply thought from a longer perspective that if you look into the history of hundred years for stock markets across the globe eventually in san jose your stock market open is occur so they could have easily invested out here so that's one thing that you should actually ignore but now this friend of mine suddenly started getting curious that yeah tell me something more about it i said first don't venture everywhere pick out your expertise and believe me each one of you sitting over here has got certain expertise you might be working into it someone might be working into mechanical someone must be working into let's say art and craft or something if you know there are more than 5000 companies out there listed into the exchange all you need to understand is a person who is from an i.t background would understand the iit sector much much much better than anyone who's from a different domain once you understand this thing you would have a better position to find out where to invest i have done plenty of mistakes previously even i had fallen into the trap of tips i had fallen into word of mouth i had fallen into what mamaji is saying or mommy he's saying without even knowing they are not explored in those domains they have just heard it from somewhere and they're trying to invest it over here but then what i did is i realized that okay i need to sit down with a pen and paper and try to understand very expertise and accordingly start investing so that's the next thing which you got to identify each one of you sitting over here has some expertise so that's the next thing which you need to do now finally he asked here you're telling about so many things right now but why is it so that we had so many tragic incidents out there so many people lost fortune out there so many people lost so much of things to manifest which is lacking in today's generation as well as today's investors first is patience and i commonly say that patience is a rare commodity in supply these days you feel impatient that's precisely what happens in the stock market in stock market we are talking about ears there's this guy in legendary warren buffet to invest and stays there for 30 40 years at the age of 16 he says here late okay okay so you got to understand that this market would test a lot of your patience because just like any business as i mentioned it takes three to four years your businesses in order to grow would require a lot of time and second is borrowed wisdom you need to understand borrowed convection doesn't work accurately into stock market to borrow tickets to be very specific so someone comes to you and says that i feel that this particular car company is going to be the next big thing you have to be careful because these kind of opportunities don't just pop up like this thing these are usually those opportunities which are rare and you have to find it through your own intellect and common sense and the more common sense you use my dear friends you will be in a better position to gorge whether to invest into stock markets or not with that being said now my dear friend who was on a cup of coffee before the coffee got over was pretty much convinced that okay i think he makes sense i think we should actually start investing into it but then he had a final question but what about those people who are taking high five degrees from top universities he named a few he talked about some premier institutes from united states and uk and i told him a very simple story history is filled with such examples we call something called funds or hedge funds they are the ones who have mammoth size of funds they are managing you know the interesting thing some of the biggest hedge funds had people from premier institutions and yet they became bankrupt i'm talking about they were from the top 10 or 20 institution of the world yet they become a bankrupt why first because of three and second because of the lack of patience so this pretty much signifies that it's not mandatory to have an educational qualification are you against education of course not i'm in damn favor of education what i only need to say over here is if you really really really want to prosper in the field of stock markets it's not mandatory to have a top-notch financial degree with pure perseverance with your patients with a lot of common sense and a lot of patience you can eventually make mammoth signs of wealth if not early in the future part so my dear friends i hope by now most of you sitting over here would be fairly convincing and eventually you can make a lot of money out here so i hope i did justice over here coming over here and talking about a few fair points and i believe after this session a lot of people who are not even thinking of stock markets would actually for a brief moment of time think about stock markets thank you so much [Music]

Channel: TEDx Talks

Views: 6,276

Keywords: Business, Career, Connection, Hindi, Risk, TEDxTalks, Youth, [TEDxEID:49616]

Id: y1Gamsa3ZkA

Length: 14min 20sec (860 seconds)

Published: Thu May 26 2022