I am not sure how many of you are into maintaining a portfolio.I started about a year back and the reason was simple.I read that of all businesses in the world, the stock market has had the highest Annual compounded rate of return since the great depression. So that was easy to lure me in!
Of course, i started buying at the heights of recession, when we got a lot of scrips at dirt cheap rates. Thankfully i was able to arrange the funding, and plugged into the markets.
Today, we sit pretty with the sensex at 20800. Its a great feeling, to literally see your net worth and portfolio value shoot, with you doing, well..nothing!(Though you need to know what to pick!).It is a great learning.
Looking ahead, a figure of 25k is certainly not being over optimistic.We actually, as a market, tend to bet more on the Dollar Decline, than the Rupee rise.And also, i have seen that speculative investors live too much on the edge. In any other business, that edge is a small parapet, with a reasonable margin for error.But stocks is already a "risky" option, and to take risks based on rumours and speculation is nothing short of digging your own grave.Value invest, and sit pretty!
For more i recommend of course Buffet and Buffetology(a book on his strategies from his ex daughter in law Mary) and also an old indian book called Turnaround Stocks, by Yasaswy.The latter specifically for those who like sick and loss ridden firms with strong fundamentals, buying them at a bargain and hold till the reach your exit mark.
Anyways, hope India does well for more than this reason alone.Commodities, futures and Forex also are viable investment vehicles, though the basics need to be relearnt for these trades.
P.S Stocks are not QUICK MONEY!
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