Why only 5% People are Rich through Stock Market?

Stock Market have 2 paths:

  • Trading
  • Investing

95% People choose Trading as it seems very Quick way of making money.

  • Trading is like an active job where you have work
  • Trading is not the purpose of stock market
  • Trading does not involve fundamental learning
  • Trading is about chasing prices, candle sticks & charts based on prices
  • Trading has high risk involved
  • Trading have high taxes
  • Trading does not involve power of compounding
  • Trading did not make any Top Riches in the world

5% People choose Investing as:

  • Investing is passive where your money works for you
  • Invest is the purpose of stock market
  • Investing requires learning fundamentals
  • Investing requires you to learn about company, expansion plans & future prospects
  • Investing has less risk involved
  • Investing have low taxes
  • Investing employes power of compounding
  • Investing created all Top Riches in the world

Now is it clear why only 5% People are Rich through Stock Market?

Multibagger is the Key

Multibagger is a stock which gives multiple bags of returns.  For example, Infosys gave 1000X returns which is Rs. 1 lakh invested become 10 Crores!  Multiple X!

All Celebrity Investors in India have become rich through Multibaggers!

They are in search of New Multibagger!

Free Education & Free Multibagger

You can get a free education on real stock market investing + Free Multibagger using the link below.

LINK https://futurecaps.com/free/?ref=1-fiv-guest-1

How to get 100X returns in a multibagger?

Now that you learnt the core aspects of stock market, decided your financial freedom goal, allocated your capital – then the next step would be to Join a Master Mind Group of Investors,

#1 Master Mind Group is important as they will keep you alive with the Investor Minds.   We are the average of 5 people we meet!

#2 Research on Future Growth sectors like Electric Vehicles, Robotics, VFX, Solar Power, Sustainable Energy, Internet of Things, Cloud Data Storage etc.

#3 Apply Value Investing to screen the companies further based on PE ratio, PB ratio, Intrinsic Value, Debt, ROE, ROCE etc.  You can learn them over internet & there is a ready made screener available here.

  1. Find companies with Sales Growth 20% or more for Past 3 Years
  2. ROE > 10% & ROCE > 20%
  3. PE Ratio < 20
  4. Intrinsic Value Discount > 70%
  5. Promoter Holding > 50%

#4 Identify Mutibagger from the shortlisted screeners & then study management, learning about the products & economic moat of the company how it retains & grow client base

#5 Allocate Capital is the next step where you will be allocating money per portfolio management theories.  You can start with 70% allocation and then add the remaining 30% on correction times

#6 Holding for long term is the next key thing where you can expect 5X 10X 20X kind of returns based on the history of Indian stock market.  I have seen my friends gaining 40X returns in just 3 years too.

#7 Bear Market may come to test your confidence.  This is the time you’re with Master Mind group going to help you.  They will hold your strength with the stocks & also give you power to buy more.  Remember the rewards of bear time investments will be double!

STEPS IN 100X MULTIBAGGER

COMPARISON

As of now, I have shown you my journey with stock market & the true aspects of it.  Till today I believe stock market is the best wealth creation platform compared to:

  • Fixed Deposit of 8% returns
  • Real Estate of 10% returns
  • Gold of 12% returns
  • Stocks 50% returns

While stock market gave 50% CAGR returns for a period of 5+ year holding.

FREE Multibagger Link

LINK https://futurecaps.com/free/?ref=1-fiv-guest-1

About Futurecaps

Futurecaps is SEBI Registered Research Analyst serving Indian Investors since 2012 created Super Multibaggers like Bajaj Finance 80X returns in 12 years.