X

Sign up for Equitymaster's free daily newsletter, The 5 Minute WrapUp and get access to our latest Multibagger guide (2018 Edition) on picking money-making stocks.

This is an entirely free service. No payments are to be made.


Download Now Subscribe to our free daily e-letter, The 5 Minute WrapUp and get this complimentary report.
We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
The Greatest Game in the World - Views on News from Equitymaster
  • MyStocks

MEMBER'S LOGINX

     
Login Failure
   
     
   
     
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

The Greatest Game in the World
Oct 14, 2014

What makes a game great to play?

Well, it's pretty much a case of different strokes for different folks. Some may like the physicality involved. Some may like the mental exercise involved. Some may even like the thrill of competition.

But if there's a game that probably everyone would want to play, it would surely be one that offers players the chance to make a lot of money.

If that is the metric you too would go by, then the greatest game in the world can be just one - the stock market.

Why is that so?

For starters, the Indian stock market offers a banquet of over 5,400 listed businesses, one of the largest in the world. Of these, about 4,000 are eligible for regular trading. Indeed, there are businesses of all kinds of shapes and sizes, management strength, business strength, profitability, prospects etc. And the implications of having available such a vast variety on offer are truly amazing.

Every day, when the markets open at 9:15 in the morning, you get offered to become a part owner of any of these businesses. You can be most picky and choosy about what kind of a business you want to become co-owner of, and still expect to find something that satisfies you. Doing the same thing minus the stock market would be next to impossible. Imagine going around your neighbourhood or your city in search for a business in which you can buy a stake. Picture such a scenario in your mind, and you will quickly realize the tremendous amount of advantages you enjoy when doing a similar thing through the Indian stock market.

And your advantages as an investor do not end there.

It gets better. There's a proverbial icing on the cake, and takes the potential advantages you enjoy to a whole new level. What is that? It is that you can name the price you are willing to pay for the business, no matter how shrewd, and still get away with it.

This is seldom possible in the real world. Negotiated transactions between two parties are less volatile, and usually fluctuate in a narrow price band. But in the stock market's world, rife as it is with speculation and silliness, you will often find that even a business with more or less stable economic characteristics can have the most unstable prices. It may trade for example, at Rs 100 in one year, Rs 25 in the next, and Rs 150 in the third.

All you have to decide, after a thorough analysis of the business, is at what price you think the business will make for a shrewd investment. And then patiently wait for the market to offer you that price. Just keep doing this, and only this, over a period of time, and you can make a lot of money in the market.

Taha Merchant

Taha Merchant (Research Analyst), is extremely passionate about investing. Sharpening his approach to stocks for over a decade now, he hates forecasts and stock market chatter, and cherishes independent, logical thinking. Conservative to the bone, his biggest attraction to the market is the opportunities it offers to jack up returns while decreasing risk. Whenever the market crashes, you'll likely find him grinning from ear to ear. Buy cheap and sell dear is his mantra. He's constantly on the prowl for deep bargains. Nothing makes him happier.

Equitymaster requests your view! Post a comment on "The Greatest Game in the World". Click here!

  

More Views on News

What They Forgot to Tell You About Sensex at One Lakh (Smart Contrarian)

Nov 29, 2017

Stocks that could beat Sensex returns in the long term.

How to Ride Alongside India's Best Fund Managers (The 5 Minute Wrapup)

Jun 10, 2017

Forty Indian investing gurus, as worthy of imitation as the legendary Peter Lynch, can help you get rich in the stock market.

The Technological Marvel That is Ethereum (Outside View)

Feb 23, 2018

Have you been wondering what the hoopla about Ethereum is? It commands the second highest value among virtual currencies and its popularity is rivalled only by bitcoin. Let's break it down.

A New Quest for the Stock Market's MOST Profitable Ideas... (Smart Contrarian)

Feb 23, 2018

If you want to receive the best ideas in the Indian stick markets...you need to heed this important announcement.

Ramesh Damani is Bullish on Niche IT Stocks and I've Found One for You (The 5 Minute Wrapup)

Feb 23, 2018

This IT Company can be a huge wealth Creator for Smart Money Secret's Subscribers.

More Views on News

Most Popular

The Foundation for Sensex 100,000 is Laid(The 5 Minute Wrapup)

Feb 17, 2018

Top three reasons for Tanushree's presentation at Equitymaster Conference to be centered around a possible 30% correction.

India's Rs 1,66,276 Crore Problem(Vivek Kaul's Diary)

Feb 15, 2018

That's the loss, the government owned public sector enterprises are expected to make this year.

The Big Gamble(The Honest Truth)

Feb 15, 2018

Once you accept the fact that elections are round the corner and that this budget is geared to reach a 40% target, everything makes sense.

How I Beat the Index by 2x... And Why I Believe This Could Happen Again(Smart Contrarian)

Feb 12, 2018

Will Microcap Millionaires be able to replicate its past performance of beating the index by 2x?

NPAs Set to Rise Further with New RBI Rules(Chart Of The Day)

Feb 15, 2018

The RBI overhauls bad loan framework. Banks may come under additional pressure due to rising NPAs and increased provisioning.

More

Small Investments
BIG Returns

Zero To Millions Guide 2018
Get our special report, Zero To Millions
(2018 Edition) Now!
We will never sell or rent your email id.
Please read our Terms

S&P BSE SENSEX


Feb 23, 2018 (Close)

MARKET STATS