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You Are Buying Businesses

Every stock has its own path. Some stocks make money quickly, some later if not sooner. (Provided you are buying quality businesses).

Returns come in non-linear way. Though, the returns are usually slow in the initial period. They come exponentially with time. That’s what we call the compound effect.

To experience the exponential growth, you need to patiently hold your stocks when they are going nowhere. Suddenly, 2 years of returns come in 2 weeks. And if you’re disciplined, the market rewards you with decades of returns in just few months. But for that, you need to HOLD the stocks.

Too many people buy stocks only to sell them at first signs of no movements in prices. Worse, they sell it on 10-20% upmoves.

You need to understand that you’re not buying some piece of paper or a digital contract. You’re buying businesses. Business takes time to grow. Earnings takes time to grow & when earnings come (or are expected to increase), the stock prices shots up.

Go long my friends. You are bound to make money in Indian stock market.

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