businesses has always
been a great wealth
creation asset class.
People like Bill Gates, Warren Buffett, Laxmi Mittal and
Mukesh Ambani are there on the list of top richest persons not by virtue of their investments in real estate or gold; but by their investments in ownership of quality and productive businesses.
Equities commonly referred to as shares or stocks are part ownership of underlying businesses.
Equity market is no gambling place. Equity market is a place where savers of capital meets and match with companies that need capital to grow their businesses.
By buying shares from this market place, one is acquiring part ownership of quality and productive businesses that would create long term sustainable wealth by means of dividend and capital appreciation.
As you stay invested, the power of compounding, regarded as the 8th wonder of the world in investment circles, comes into play, and your investment starts growing at superior rates than one can imagine.
In a free world, an emerging economy like India offers larger opportunities
In a free world, an emerging economy like India offers larger opportunities.
Considering the sheer size of growth opportunity in an emerging economy like India, there is little doubt that Indian businesses and its equities is one of the most attractive investment asset classes and is slated to offer superior returns for investors.
An abundant structural growth opportunity, a robust economy, relatively low penetrated business sectors, strong demographic power, high quality knowledge base, hard working work force, rising young population, strong entrepreneurship skills, credible democratic environment and a slew of reforms, has put India on the radar of global investors.
There are lots of great businesses and companies run by efficient and quality management that would propel India’s growth story to world class standards
A young country and an educated, skilled young population is a great asset to invest and own.
The problem is that
people don’t look at
equities that way and
instead considers itmerely as a speculativeor betting instrument.
The main problem with the larger crowd has been that most of them failed to understand or rather haven’t spent time to understand the real concept of equities.
You have one of the most profitable businesses in your hometown. Would you sell it because of the problem in Euro zone? If you own a good real estate property or apartment building, would you sell it today because of problems in Washington or volatility in the stock markets?
One wouldn’t even think about it.
The problem is that people don’t look at equities that way and instead considers it merely as a speculative or betting instrument.
Owning good equities is like owning a good and productive business or real estate.
Returns or wealth creation through equities are not linear and is subjected to lot of volatility, sentiments and other unforeseen external factors.
However, over the years equities have generated decent returns for investors and in the process of generating those returns they have came across and easily crossed many events like the Oil crisis, Asian crisis, Dot-com bubble, Kargil war, Harshad Mehta Scam, several terrorist attacks, the recent financial crisis and one can keep adding to list. There’s always going to be something that’s bothering the world.
However, quality and productive businesses are going to be there 5, 10, 20, 50 years from now.Kindly have a thought on the products and services that you consume in your daily life, you would find a lot of quality businesses that had withstood the tests of time.
The very special ones are welcome to earn their stakes in India’s choicest businesses.
Experience it through our premium boutique Portfolio Management Services.