We’ll be talking about Long Term Investment
Every point is a fundamental concept every investor should know.
Topics are as follows:
- What is a long-term investment?
- Why be a long-term investor?
- Five tips for long terms by warren buffet
- How to find a long-term investment?
What is long term investment?
The goal of long-term investing is to hold your investment for more than one year to build wealth by carefully creating a portfolio of stocks and assets. It is all about getting into the right investments and waiting it out patiently until you are ready to redeem them to meet your financial goals.
Why be a long term investor?
For long term investment you can try to minimize the risk of price fluctuations.
If you see the stocks markets history long term investment always give us good returns.
Source: NSE, Compiled by ETIG Database
* Risk comes down with an increase in holding period. More year you hold more return you will get. Don’t get demotivated when it goes low and don’t get panic and sell your stocks. It will may get a spike in the future. The above graph has shown years from 28 March 2017 to 28 March 2018. Do your own analysis and then invest in stocks or mutual funds.
Five tips for long terms by warren buffet
1. Don’t try to time the markets.
Warren Buffets says “I never know what markets are going to do, I know markets are going to do over a long period of time they’re going to go up but in terms of what going to happen in a day or a week or a month or a year even I’ve never felt that I knew it and I’ve never felt that was important.”
2. Don’t be afraid to buy the dips.
“we’re almost always a buyer stocks and when they’re going down I mean I feel much better when they’re going down.”
3. Keep it simple
“I think every business should run as efficient as possible and some are and some aren’t.”
4. Start young
“When I bought my first stock in April of 1942 I was 11.”
5. Don’t believe the doomsayers.
“Peral harbor it happen three or four months earlier, we were losing the war. I mean if you want to talk about that outlook for the country, the country is not going to go away. The country will grow in value over time now who gets it, it’s another question.”
Don’t forget these tips from warren buffet. While investing just remember this tips.
Investors famous for their success include Warren Buffett. In the March 2013 edition of Forbes magazine, Warren Buffett ranked number 2 in their Forbes 400 list. Buffett has advised in numerous articles and interviews that a good investment strategy is long term and choosing the right assets to invest in requires due diligence.
How to find a long term investment?
Long-term investors use some analysis to find out a stock’s which will be benefits for people in the future. By going through financial metrics, earnings reports, and ratios.
The question arises is how to select the best investment for the long term.
If you don’t know how to analyze the company or balance sheet so I will show you tricks for stocks selection.
First visit this site: http://www.moneycontrol.com/mf/scrips_held/index.php
Here you will see the Top Stocks held by Fund Managers.
You can see top 10 mutual fund managers hold this top 10 stocks. Also, you can see the market value that mutual fund managers have taken. You can also find top 25, 50, 75 and 100 stocks that managers have taken.
One more thing in moneycoontrol website you can see the favorite sector also. You can know in which sector they divided their money.
As you can see in which sector fund managers have put their money.
That’s how you analysis the long term investing in stocks.
You can also invest in mutual funds.
This investment might give you 20-25% in return in few years which is much better return compared to any other investment option in the market.
So mutual funds are the best ways to invest money to get good returns.
If you want to know how to invest then checkout this link.
how to invest money in mutual funds?
In long-term trading, you need to carefully pick out good stocks that can grow and deliver good returns in the future. Look out for stocks with high growth potential and good management teams.
The bottom line
Long-term investment gives you low risk with good return. Just you have to analysis the company properly. Don’t get demotivated if your portfolio goes low, think for long term which will give you high returns.
Now It’s Your Turn…
And now I’d like to hear from you:
This blog helps you or not.
Or maybe you have a question.
Either way, let me know by leaving a quick comment below.
I’ll be around to personally reply to comments and questions that come in.