1. Investor Education First Invest in Yourself Markets come second Presentation by CA Rajesh Rampal (With special reference to Stock Markets)
2. Investor Education First Invest in Yourself Markets come second Sir Isaac Newton, the famous scientist, lost some of his money due to speculation in The South Sea Company stock in the 1720s. Isaac Newton lost over 20,000 pounds (£1.68 million in today's money) of his fortune. As a result of this crisis, he stated "I can calculate the motions of heavenly bodies, but not the madness of people".
3. Investor Education First Invest in Yourself Markets come second Basic Economic Principles GNP= C + I + Govt.exp.+ Net Exports. Where GNP is Gross National Product, C is Consumption and I is Investment. (MACROECONOMICS by William Branson) Hence Investment adds to GNP and is a must for any growing Economy and as Citizens of India we must save and Invest for a better tomorrow for our country’s future generations.
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6. Investor Education First Invest in Yourself Markets come second Warren Buffett’s Gameplan 3. Are profit margins high? Are they increasing? 4. How long has the company been public? 5. Do the company's products rely on a commodity? Competitive advantage or what he calls moat. 6 . Is the stock selling at a 25% discount to its real value? 7. Conclusion Buffett's investing style, like the shopping style of a bargain hunter, reflects a practical, down-to-earth attitude. He doesn't live in a huge house, he doesn't collect cars and he doesn't take a limousine to work. Do note that the most difficult thing for any value investor, including Buffett, is in accurately determining a company's intrinsic value.
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8. Investor Education First Invest in Yourself Markets come second Investment Risks and Returns A. Quantifying weightage to Equity - No hard and fast rule but should vary with timings. B. Mitigating Risks by a diversified Portfolio- Spread your risk by putting your eggs in different baskets. C. Risks in Equity Markets- Be prepared to loose your Investment upto 50% at any given point of time. Timing of Investment is very important. D. Protecting the Portfolio during market volatality.- Beta of your portfolio, Selling Equivalent Nifty Futures. Options trading/hedging is for the mature Investor - one who understands these products.
