Think Locally, Invest Globally

Think Locally, Invest Globally

Invest 1 Crore and Earn more than 30 Crores in 10 Years 

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We Specialise in Indian and Global Stocks

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                Why 95% Public Loose Money in Stock Market


Share Market either goes up or comes down. So making money at the share market should be very very easy. But unfortunately more than 95% of public loose money in share market. Before we learn as how to make money we should know the basic reasons as to why more than 95% of public loose money in stock market. 


There are 7 different ways to make money in share market. Firstly through intra day trading. Secondly through trading in Futures. Thirdly by trading in Options. Fourthly through very short term delivery based trading with a time span of two or three months. Fifthly through medium term delivery based trading with a time horizon of one to two years or so. Sixthly by investing in share market through mutual funds. And Seventhly by investing for the long term with a time horizon of five to ten years or more.


Surprising thing is that all the general public who enter in stock market through any of the seven different ways heavily loose money. Though there are many reasons for this yet let us first understand the most important reason behind general public loosing money in share market. And that reason is SYSTEMIC REASON.


The systemic reason is that the system of stock market has been designed like a mousetrap where instead of the mice it is the general public that is lured and induced to enter stock market and then loose all their hard earned money. This is a systematic problem. We shall explain in detail.

 

There are five main players at stock exchanges. Firstly the managements of the companies whose shares are listed at stock exchanges. Secondly are the share brokers. Thirdly are the mutual funds and the Foreign Institutional Investors. Fourthly are the Share Market operators and Fifthly is the general public. 


You must realize that all the first four major players i.e. the company managements, the share brokers, the fund managers of mutual funds and of the FIIs, and the share market operators are there to make money for themselves not for you. And the truth is very obvious. They can't make money until and unless the public loose money. This is a hard fact. Please try to understand it that until and unless the public loose money they can't make money. So the public is destined to loose money at the stock market. Let us analyse in further details.


Firstly let us talk about the company managements. It is well known that you can make money in the shares of only that company where Management is honest and competent and is passionate about growth. All these three qualities are required in the management of a company where you can make money by investing in its shares for the long run. 

Though there are more than 6000 companies listed at Indian Stock Exchanges yet you will be surprised to know that managements of more than 95% of the 6000 companies listed at stock exchanges are either dishonest or incompetent or they don't want to grow. You will also be surprised to know that out of the 6000 shares listed at Stock Exchanges 95% of the shares are absolutely useless. That means the shares of 5700 companies are bullshit shares. Any body who in the past has bought the shares of any of these 5700 companies at any time and at any rate he has lost money. All types of fraudulent activities take place in the price movement of these shares. 


In fact it is almost an impossibility to even select 100 good companies in India where managements are honest, and competent and growth oriented. And you should be extra cautious and careful about shares in NIFTY50 and other indexes. Though apparently all these companies in NIFTY50 and other indexes appear to be very good yet nothing can be said with confidence. You must always remember that shares of many companies that used to be part of NIFTY50 or other index are now quoting almost zero and or their promoters are in jail for fraud and corruption. For example. Ansal Properties, ABG Shipyard, Amtek Auto, Bhushan Steel, Dewan Housing Finance. GMR, HDIL, JP Associates, Jet Airways, Kingfisher Airlines, Lanco Infratech, RCOM, Reliance Infra, Reliance Capital, Suzlon, Videocon, Yes Bank and Unitech etc. These are only the very big names in recent times where the public has totally lost money. We could give you hundreds of examples of once top rated blue chip companies that closed down because of dishonesty and or incompetency of their managements. Therefore, inclusion of a company's share in NIFTY50 or in any other index does not mean that management of the said company is honest and competent and is also growth oriented. 


Managements of all the various companies got their shares listed at stock exchanges to make money for themselves and not for public investors. We very respectfully repeat that the managements of all the various companies got their shares listed at stock exchanges to make money for themselves not for you.


Secondly now let us see what is the agenda of the sharebrokers. We are sure you will agree that brokers everywhere, whether they are property brokers or other broker any where else or share brokers are all most cunning and most dishonest and most unreliable. Expecting a share broker to be honest is like expecting the sun to rise from the west. We shall shortly be coming out with a video on YouTube where we shall explain in detail the fraudulent activities of the share brokers and about their mischievous and dishonest behaviour and how they fleece the gullible innocent general public. Moreover it is a very plain and simple truth that even an illiterate rustic villager understands and which should be understood by all the general investors that the share broker is doing business not to enrich his clients but to enrich himself at the expense of his clients. 


Please try to remember that from time to time SEBI has been taking punitive actions against many brokers that are involved in fraudulent activities. Do you remember the latest case of KARVY SHARE BROKERS. As you all know that Karvy was one of the topmost share brokers in India. And you must also have heard that directors of Karvy had dishonestly embezzled shares belonging to their investors worth more than Rs. 6000 crores. And there are hundreds of such dishonest share brokers that have not been caught so far but they are all trying their best to screw their clients.


Thirdly same is the situation of mutual fund managers and of the fund managers of Foreign Institutional Investors. Vast majority of the fund managers are highly educated, extremely intelligent but because of extreme greed are hand in gloves with the brokers and the share market operators. Do you know that in majority of the mutual funds value of the original investment of the unit holders has substantially eroded and that in more than 95% of the mutual fund schemes the unit holders have received appreciation lesser than the amount of interest that banks pay on fixed deposits. Naturally either the fund managers are corrupt or are outright incompetent educated fools who are not able generate even 7% returns in the mutual funds they manage. 


Now fourthly the role of share market operators. Do you think that share prices move just because of news or just because of working of the company. The answer is NO. The share prices move because of the selling and buying pressure and are managed by the share market operators who in connivance with certain fund managers and certain share brokers and sometimes with the blessings of the company's managements rule the prices. It is the operators who decide at what price the share of a particular company will open, what will be its high low and what will be the closing price. Like many a times cricket matches are fixed. Same way 99% of the times the price movements of the shares are already fixed in advance by the share market mafia led by the operators. 


The general public investors and general public intra day traders are pitted against the dishonest company managements, are pitted against the cunning share brokers, are pitted against the rogue fund managers and are pitted against the mafia of all powerful share market operators. It will be naive and childish to imagine that general public investors would be able to make money at the stock market by defeating this unjust system led by the powerful mafia of the stock market.

So far we have explained to you that the system in stock market works against the public investors. However, there of course are mistakes on the part of the public investors too because of which mistakes also the investors loose money at the stock market. We shall be writing another article where we shall explain the mistakes to be avoided by general public investors to make big money at the stock market. 

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WARNING

If you speculate or you trade in futures or trade intra day you will loose your peace of mind, you will loose your sleep, you will loose your health, you will loose your family life and sooner or later you will definitely loose all your money too :


Never Speculate

Never Trade Intra Day

Never Trade in Futures

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Best strategy to make money in share market

  • To earn compounded 36% return per annum the small investor should invest in the top shares named by us above through SIP.


  • Big Investors for Bumper Profits must invest at least 50% of their funds in new age technology companies listed at NYSE, NASDAQ and all investments must be made not in one go but by staggering over a period of one year. From time to time you should also keep booking small losses and large profits. 

Making Money in Shares is Simple But Not Easy

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                                   5 Golden Principles to Make Money at Stock Market : 


We at Saku Ma Global Consulting analyse Indian as well as International stock markets and provide you valuable news that helps you earn crores and crores of rupees from stock markets.


Let me warn you that if you are doing intra day trading or trading in futures or you are doing speculation in options then this is not for you. This is for those persons who want to invest in stock market for long term of about five to ten years and those who expect return of about 25% compounded per annum with peace of mind. We believe that earning money is important but peace of mind is more important. We don’t believe in taking risk. Herebelow is the safest and the best way to make money at the stock market with zero risk.


There are 5 Basic Principles for Long Term Investing in Stock Market. If you follow these principles you will earn crores and crores of rupees. So please read carefully. 


1. First Principle. Investing in stock market is extremely risky so the first and foremost principle is: You must know the art of managing risk. I very respectfully repeat that the most important mantra to make money at the stock market is that you must know the art of managing risk. And here are the rules for managing risk. Invest in about 20 stocks from different sectors and invest in different countries. In one share you should not invest more than 5% of your investible funds and in one sector don't invest more than 20% of your funds. Everyone makes mistakes so ruthlessly cut your losses short. Even Warren Buffet makes mistakes and follows this rule. In the year 2016 he had heavily bought shares of 4 airline companies but later realised that it was a mistake so he sold all the airlines shares at loss by April 2020. Safety of your capital should be the most sacred and most important objective,


2. Second Principle. Invest in only the best of the best, growth oriented and fundamentally strong stocks  like  

Asian Paints, Bajaj Finance, Britannia, Nestle, Pidilite and Titan, Amazon, Apple, Google, Facebook, Microsoft, Visa etc. Never invest in companies where management is dishonest or corrupt and avoid companies that are debt heavy. For bumper profits we strongly recommend that you must invest in shares of new age technology companies listed at New York Stock Exchange or at NASDAQ or at Singapore or Shanghai or at Tokyo Stock Exchange. 


3. Third Principle. Timing is very important. Firstly your time horizon should preferably be ten years and secondly you should start accumulating shares when there is absolute gloom everywhere. And you should sell when everyone is strongly bullish. However, such gloomy or bullish periods come only two or three times in a decade and it is impossible to catch bottoms and highs, therefore, best strategy is not to invest the entire funds in one go but should be invested in different tranches staggered over a period of time. For small investors the best principle is SIP in shares we have mentioned above. Please note that we recommend SIP in the 7 Indian shares we have recommended above. Not in mutual funds. We don't recommend investment in mutual funds nor in index funds.


4. Fourth Principle. Though you must have patience yet the old concept that you buy shares and hold for life is no more valid. Stock markets may suddenly fall upto 50% or so but don’t sell in panic. In fact such are the times to accumulate good shares. World is changing fast. Technology is changing even faster. In consultation with your financial adviser you should keep on booking small losses and large profits once or twice a year and occasionally keep on making small deletions and additions in your portfolio. For making good profits you just can't invest in stock market and sleep for ten years. Times have now changed and the companies and investors that will not keep pace with new technologies and new changes would collapse.


5. Fifth Principle. Seek advice from a competent and highly experienced stock market advisor and don’t give any attention to the free advice doled out on TV channels or in newspapers or by your friends. Such unsolicited, free but irresponsible advice unnecessarily causes confuses, dilemma and tension. Suppose you are sick, naturally you will not seek treatment from a nurse or from a compounder or from a jhola chhap doctor or from your colleague and you will also not start studying medical books to treat yourself. As a wise person you would seek treatment from a competent doctor having super specialisation. Same way if you have a legal problem then you will not study law books to fight your own case nor will you entrust your case to the munshi or clerk of a lawyer but you will engage a competent lawyer. 


You should understand that investing in stock market is a highly specialised vocation. Best of the best brains the world over are involved in researching the stock movements. Therefore, if you are a big investor you must have the services of a paid financial adviser who should preferably have more than 30 years of active experience in stock markets, who has himself suffered the agony of the 1992 Harshad Mehta Scam, 1998 UTI default and South East Asian Currency Crisis, 2001 Ketan Parekh Scam as well as Tech Bust and 2008 financial crisis the world over. You should pay him handsomely because free advice or cheap advice has no value. 


If you strictly follow the principles stated in this video. You will come out victorious and you will make crores and crores of rupees as profits in long term investment in stock market.


Bank Fixed Deposits versus Mutual Funds ?

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Should You Invest in Bank FD or in Mutual Funds?


An important question arises as to should you invest in bank fixed deposits or in stock markets and collateral question is as to what returns should be expected from mutual funds by a general public Investor ? 


Many Banks for large fixed deposits usually offer 8% to 9% interest per annum. Making fixed deposit with your nearby bank is absolutely safe and convenient. Bank FD apart from liquidity gives you peace of mind and a sense of safety and security. You must be aware that over a period of ten years your amount in bank FD becomes more than double.


On the other hand while you invest in Stock Market there is huge risk involved. There are chances that your entire capital may become zero or the price of your shares may not go up at all. Please note that even if the price of your shares neither goes up nor comes down you still have lost the interest portion on your amount invested in stock market which amount in bank fixed deposit would have earned you handsome interest.That also is a very very serious loss.


For example NIFTY in the year 2011 was at about 5500 level and is now in April, 2020 is about 10000. In ten years inspite of taking heavy risk NIFTY has given a return of hardly 90% only. However, bank FD rate in the year 2011 was 10% p.a. yet even taking bank FD rate as 8% p.a. you would have got a safe and sound return of more than 120% in bank FD.


And do you know that in this decade in more than 90% mutual funds the returns have been less than the interest received on bank fixed deposits, and in more than 60 % mutual funds instead of getting any returns you got losses and in many mutual fund schemes value of your investment has got seriously eroded.


You must also have realised that when you need money and want to redeem the mutual fund units then surprisingly you find the price of the mutual fund units down by about 25% or so. Like these days during the Corona Pandemic when the entire country is under lockdown and you require money but all the mutual funds are down by 25% or more. On the contrary bank fixed deposits keep growing steadily irrespective of the problems in the world.


Before entering Stock Market you must calculate the risk reward ratio. These days bank FD gives GUARANTEED annual interest of 7% to 9%. You must be aware that many banks offer interest upto 9% per annum on fixed deposits. You must also be aware that your deposits upto Rs. 5.0 Lacs in banks are automatically 100% fully guaranteed by DICGC of the Government. No person with commonsense will enter stock market for expected but highly risky return of mere 8% to 10% per annum which is just 2% or 3% more than the bank Fixed Deposit. Please also note that in your stock market mutual fund investments you not only loose your peace of mind and but there are also 90% chances that instead of any gains you will incur losses on your investment in such mutual funds and in index funds. Please always remember that ultimately it is hardly 10% people who make money in mutual funds and in index funds and rest of the 90% people sooner than later incur heavy losses. 


You should enter stock market only if returns of at least 15% per annum are expected. Otherwise put your money in bank Fixed Deposit. Why take unnecessary risk and loose peace of mind for an additional risky returns of 2% or 3% in mutual funds or index funds and where you loose your sleep too. You should also ask a question from yourself as to - What price will you pay for peace of mind. Put your money in bank Fixed Deposit. and ENJOY PEACE OF MIND.


Investment in GOLD IS BETTER than investment in Indian Index Funds or Mutual Funds: and moreover with the glitter of gold your family life would also brighten and sparkle.  



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How to Earn Rs. 30 Crores from Stock Market with 1 Crore


1.   Today we are giving you a winning strategy to create a model portfolio of Rs. One crore that will grow to more than Rs.30 Crores in stock market in 10 years with peace of mind. We believe that earning money is important but peace of mind is more important. We don’t believe in taking risk. We are going to tell you the safest and the best way to make money at the stock market where risk is almost zero and where you enjoy KUMBHAKARAN SLEEP for 10 years.


2.   Let us suppose you want to invest Rs. One crore in stock market. Out of this Rs. One crore you should invest now only Rs. 25 lacs in the shares of Apple, Amazon, Facebook, Google, Microsoft, Visa, Asian Paints, Bajaj Finance, Britannia, Nestle, Pidilite and Titan almost equally. Dividends whenever received should be invested again in those very shares. The balance amount of Rs. 75.0 lac of your investible funds should remain in term deposit in your bank.


3.   Depending upon new developments this amount of Rs.75.0 lacs should be invested over a period of about six months in staggered manner mainly in the above named shares and in the shares of about 5 or 6 other new age technology companies listed at New York Stock Exchange or at NASDAQ. In our other videos to be published on YouTube from time to time we shall be giving you the names of those other new age technology companies also where you will invest about 25.0 lacs out of your balance amount of Rs. 75 lacs for bumper profits wih peace of mind.


4.    In this way within one year your portfolio will contain shares of total about 20 companies out of which 50% will be foreign new age technology companies listed at New York Stock Exchange or at NASDAQ. 


5.   We expect a compounded return of about 36% per annum on this portfolio whereby your investment of Rs.1.0 Crore would certainly grow to more than Rs.30.0 Crores in ten years and the beauty is that you will have peace of mind because wherever the stock market may go you will make money. You can invest in these shares and enjoy KUMBHAKARAN SLEEP over this portfolio for ten years.


6. World is changing fast. Technology is changing even faster. We believe that the world belongs to new age technology companies. Big money will be made in shares of new age technology companies. 

 

Investing Nuggets


A. You must never ever invest in the shares of any company where the management is dishonest.

 

B. Don't invest in companies which are debt heavy.


C. In the long run you will certainly loose money if you invest in shares from following sectors. For your long term portfolio you should not have even a single share from these sectors :-


1. REAL ESTATE

2. PUBLIC SECTOR BANKS

3. PSUs

4. POWER

5. INFRASTRUCTURE

6. SUGAR

7. METALS & COMMODITIES


D, SBI is a very good bank but its share is not good for long term investment. Other public sector banks are also good banks but the shares are equally bad for long term investment.


E. Public Sector Undertaking are very good companies but their shares are not good for long term investment.


F. In the last twenty years the performance of shares of Public Sector Banks and of other PSUs has been extremely dismal, of course barring two or three odd cases. Investment in such shares should be avoided.


G. The future now belongs to new age technology companies.


Earn Rs. 10 Crores with "SIP" of Rs. 1 Lac p.m.


1. Though the Indian Stock Markets are in bear phase since end of March 2020 and the same bearsh trend is expected to continue for the whole of 2020 of course with bear market rallies. Our target for NIFTY for next year remains 10000. During the whole year market will show extreme volatility, therefore, our first advice is that the general investors should avoid stock market and should keep their investible funds in Bank FD at 7% rate of interest. However, if at all you want to invest then you should follow the SIP route.    


2.   Today we are giving you a strategy whereby if you invest Rs. One Lac per month you will get about Rs. Ten Crores after 10 years with peace of mind. We believe that earning money is important but peace of mind is more important. We don’t believe in taking risk. We are going to tell you the safest and the best way to make money at the stock market with zero risk.


3.   First month with Rs. One Lac you should buy following shares.  Asian Paints, Bajaj Finance, Britannia, Nestle, Pidilite and Titan. Thereafter every month out of the above shares you should buy for Rs. One Lac those shares which have appreciated the least or have fallen in value as compared to last month.


4.   I very respectfully repeat that every month out of the 8 shares we have just recommended you will buy for Rs. One lac those shares which have appreciated the least or have fallen the most as compared to last month. Dividends when received should be invested again in those very shares.


5. We expect a compounded return of about 36% per annum on this portfolio whereby you will invest Rs.1.20 crores over a period of ten years but we are sure that market value of your portfolio at the end of ten years would be about Rs.10.0 crores with peace of mind and KUMBHAKARAN SLEEP for 10 years..
 

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Model Portfolio for a Small Investor

How to Earn Rs. 1 Crore from Stock Market with Rs.10 Lacs


If you are a small investor then here is a winning strategy to create a model portfolio of Rs. Ten Lacs that will grow to more than Rs. One Crore in stock market in 10 years with peace of mind. We believe that earning money is important but peace of mind is more important. We don’t believe in taking risk. We are going to tell you the safest and the best way to make money at the stock market where risk is almost zero. 


Let us say you want to invest Rs. Ten Lacs. The best strategy is that this entire amount of Rs.10 lacs should be invested in following shares over a period of two months i.e. now you should invest one third of the amount, one third next month and the balance you should invest in the month thereafter. Your entire amount of Rs. Ten lacs should be invested almost equally in the shares of 


Asian Paints, 

Bajaj Finance,

Britannia, 

Nestle, 

Pidilite, 

Titan,  

Dividends should be invested again in those very shares.


We expect a compounded return of about 24% per annum on this portfolio whereby your investment of Rs.10 lacs would certainly grow to more than Rs. 1 Crore in ten years with peace of mind.


We once again respectfully repeat that this is the safest and the best way to earn Rs.1 Crore with Rs. 10 Lacs from the stock market.


You will be happy to know that every top stock market analyst will appreciate that this is the best model portfolio for small investors. No one will say that it is not a good portfolio. In our opinion this is the best. 


If anyone finds fault with this portfolio he can at any time send us a WordsApp message on phone 7669866855. 


We shall be highly thankful for your feedback.

About Us

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WE PROVIDE news and views about INDIAN and GLOBAL STOCK MARKETS

Our editors team is headed by Stock Market Veteran Mr. B. B. Rai who has more than thirty five years of active experience in understanding stock prices as an investor and as a trader. He had been SEBI registered member of National Stock Exchange, of Bombay Stock Exchange, of Bangalore Stock Exchange, of Jaipur Stock Exchange and of Delhi Stock Exchanges. In 1997 he had been SEBI Registered Merchant Banker and Portfolio Manager.


WE BELIEVE THAT THE FUTURE BELONGS TO NEW AGE TECHNOLOGY COMPANIES.

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Are Mutual Fund Managers Corrupt or Incompetent Fools ?


  • No. No. No. 


  • Majority of the fund managers are not fools, actually they are BLOODY FOOLS. 


  • I very respectfully and with utmost humility repeat that majority of the Fund Managers including fund managers of Foreign Institutional Investors are not only fools but outright bloody fools. Here below are three examples. 



 1. First of Mutual Funds


  • Do you know that during the last decade more than 90% mutual funds have given lesser returns than the interest given by the banks on fixed deposits; and in large majority of mutual funds the investors have incurred heavy losses on their investments. 


  • There are more than one thousand shares where the mutual fund managers including the fund managers of Foreign Institutional Investors from time to time gave buy calls but every one whoever invested in those shares came out to be big looser. We are giving you names of a few such shares of big well known companies which were strongly recommended for purchase by these fund managers and such companies have since collapsed causing heavy losses to the investors :- Videocon, Reliance Communications, Idea, Reliance Power, Reliance Infra, Reliance Capital, Ansals, Unitech, JP Infra, JP Associates, Jet Airways, Kingfisher Airlines, GMR, Bhushan Steels, Amtek Auto, ABG Shipyard, Jyoti Structures, Monnet Ispat, Lanco Infratech etc. etc. Innumerable hundreds and hundreds of examples can be given where the fund managers have given such foolish recommendations causing very heavy losses to the investors. These fund managers are worse than bloody fools. 



2. Second of Yes Bank. 


  • Since 2009 a very large number of fund managers had been giving a buy call on shares of Yes Bank. 


  • It was common knowledge among financial circles that Rana Kapoor CMD of Yes Bank was thoroughly corrupt who after getting heavy bribes had been giving large risky loans to dishonest businessmen. 


  • It was common knowledge that Rana Kapur through dubious and corrupt means had created assets of more than one thousand crores in his own name as well as in the name of his wife and daughters. 


  • It was common knowledge that Yes Bank had extended loans of thousands of crores to the companies of Anil Ambani Group, to the companies of Wadhawan Group, to Cox and Kings and to many such other companies which were under severe stress and whose promoters had used all types of dirty tricks to remain afloat.


  • Naturally such a bank where the CMD is thoroughly corrupt and where quality of top twenty of its borrowers is junk is bound to collapse sooner or later.

 

  • And if any fund manager says that he never knew about such facts, that means either he was hand in gloves with Rana Kapur or was grossly incompetent, thoroughly careless and deserves to be lodged in jail along with Rana Kapur.


  • So I am being lenient when I say that the fund managers who gave buy call on Yes Bank shares or those who themselves bought and continued to hold Yes Bank shares in the portfolio of various mutual funds managed by them were bloody fools. They are actually white collar criminals who deserve CBI investigation into their serious misdeeds. 



3. Third of Franklin Templeton


  • The collapse of Franklin Templeton debt fund where public money of more than Rs.25,000/- Crores of Rupees is stuck is a living and most recent example where the fund managers of a leading Foreign Institutional Investor have proved themselves to be BLOODY FOOLS. If the fund managers could not properly manage a debt fund where safety and security of the invested amount is of paramount importance what would you call of such fund managers? Even a common rustic villager will say that the fund managers of Franklin Templeton were either corrupt or were outright incompetent. Right action would have been CBI investigation into their corrupt practices and they be lodged in jail for life along with their friends Rana Kapur and Wadhawans but because of Corona pandemic nobody has the time to raise this issue. CBI must investigate into the misappropriation of such huge amount of Rs.25,000 crores of public money.


Traders' Paradise

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Share of STATE BANK OF INDIA - OUR UNDERSTANDING

 

SBI Bank is Very Good Bank 

SBI Share is NOT Good for Long Term Investment.

HOWEVER, SBI share is the  BEST SHARE  for Medium Term Trading


1. State Bank of India is a very good bank. In fact it is not only the biggest bank in India but is also admired the most by the general public. State Bank is the symbol of financial strength and pride of the country. However, long term investment in the shares of this bank in the last about 10 years has not given any appreciation at all. 


2. In the last 10 years or so the share price of SBI has oscillated between price range of about 350 to 150. If any investor had bought shares of SBI for long term at any price and at any time during the last 10 years he has suffered losses. And now the price these days in April, 2020 is around 160 that clearly shows that any long term investor has made no gains if he had bought shares of SBI at any time and at any rate in the last 10 years. 


3. And as per our assessment in the next ten years also SBI share price will oscillate in the same price zone of about 150 to 350. We strongly suggest that you should not buy SBI shares for long term investment. 


HOWEVER, for medium term trading SBI share is the best. Accumulate it whenever it comes at about 150 and hold it for about 2 or 3 years when it will certainly cross 300 and you should sell. In this way through medium term trading you can double your money every 2 or 3 years in SBI share.

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Why Shares of PSUs are Not Good for Long Term Investing


1. It is a matter of common sense that in the long run shares of only those companies would keep growing where objective of the companies is to generate more and more profits and where such companies do generate higher and higher profits.


2. However, it is also a matter of simple common sense that objective of the companies in the public sector is not to maximise profits but to promote social welfare.


3. You will agree that profit maximisation is not the objective of the Public Sector Undertakings.


4. Hence when objective of the Government Companies is not profit maximisation how could you expect the share price of public sector companies to rise.


5. And here is a historical fact. In the last thirty years whoever has made long term investments in the shares of Government companies has incurred very heavy losses.


6. In our opinion there are no chances that in future also shares of Government companies would rise in the long run. Share prices of Public Sector Undertakings will remain range bound.


7. Though most of the Government companies are better managed than best of the best private companies. Because of the fear of CBI and of CVC the corruption level in PSUs is very very less as compared to the companies in the private sector. And then it is a matter of record that employees of PSUs are appointed after passing rigorous and tough merit based competitive examination, therefore, notwithstanding the reservation factor the intelligence quotient of the employees of PSUs is much higher than the employees of the companies in private sector.


8. However,  mainly because the main objective of PSUs is not profit maximisation yet is to create social equilibrium so shares of PSUs will remain laggards in the long run.

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NEVER Invest in the shares of real estate companies

 

We strongly recommend that you should never ever invest for long term in the shares of real estate companies because of following reasons :-


A. 99% of the people involved in real estate business including developers, builders and property dealers / sales agents are outright dishonest, frauds and employ all sort of illegal means to screw their customers.


B. The customer service in real estate sector is pathetic, in fact many builders employ goondas and pehalwans to settle customer grievances.


C. All types of dirty money including drug money and proceeds of all sorts of crimes is invested in real estate business. The corrupt public servants and the mafias all over the country invest their bribe money and blood money in real estate business.


D. It is common knowledge that barring 0.1% builders all others accept cash of anywhere upto 60% or more of the sales of their properties. 


E. For achieving their objectives the builders don't mind the illegality of their actions. For example many builders offer assured returns on booking of their projects inspite of the fact that they know such schemes being collective investment schemes have been banned by SEBI. 


F. To collect money the modus operandi of most of the reputed builders borders on illegality and which commercially also shows that they are incompetent. The builders will pay about 10% to the land owners/ Authorities, will make a project and get finance from the banks; and on the same project will also start collecting booking amounts from the flat buyers.


G. Many reputed builders will go to any extreme to collect money from the public. These unscrupulous builders without having land and without approved layouts will get beautiful brochures printed and book thousands of flats and would collect thousands of crores of rupees from the unsuspecting flat buyers. Though there are hundreds of such examples yet two are worth mentioning because shares of these two companies used to be part of NIFTY 50. M/s JP Associates Group and M/s Unitech sold and in the process cheated more than 20000 flat buyers and collected about 15000 crores of rupees from flat buyers on the basis of beautifully designed brochures but without having land or without having approved layouts / plans. And the huge amount of Rs. 15000 crores collected from the public was misappropriated. 


H. The balance sheets of all these unscrupulous builders who deal in cash are naturally cooked up. So how fundamental analysis could be done when the data in the form of balance sheet is patently false.


I. In the history of Indian Stock Markets each and every public investor who bought shares for long term of real estate companies has incurred heavy losses.


SO moral of the story is that you should never ever invest for long term in the shares of real estate companies.

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aTTENTION: STUDEnts and beginners in stock market

If you want to make career in Stock Markets then :


A. To do job oriented vocational training you should visit the website of Successway Edutech who conduct various courses on stock market with 100% JOB GUARANTEE.


B. Visit the website of NSE, BSE and NISM to know the various training and certification programmes conducted by them relating to capital markets.


C. To learn about basics of Stock Market you should watch on YouTube videos of Mr. Udayan Mukherjee, Consulting Editor of moneycontrol.com


B. To learn about trading with a one year horizon you should watch on YouTube videos of Mr. Shankar Sharma of First Global


C. To learn about long term investment with a 5-10 years horizon you should watch on YouTube videos of Mr. Raamdeo Agrawal of Motilal Oswal.


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DISCLOSURE

THE CONTENTS ON THIS WEBSITE ARE NOT ADVICE FOR INVESTMENT BUT ARE NEWS AND VIEWS AND THAT ALSO FOR INDIAN RESIDENTS ONLY. THE MATTER IN THIS WEBSITE REPRESENTS OUR EXPERIENCE AND IS PUBLISHED FREE AS EDUCATIONAL CONTENT ONLY. WE ARE SURE THAT THE VIEWS EXPRESSED HEREIN CONTAIN WISDOM IN CONDENSED FORM BUT BECAUSE STOCK MARKET BY ITS NATURE IS VERY VOLATILE, THE VISITING INVESTORS BEFORE TAKING ANY POSITION IN ANY STOCK REFERRED TO HEREIN THIS WEBSITE MUST SEEK ADVICE FROM THEIR OWN  INVESTMENT ADVISOR AT THEIR OWN RISK. WE ARE NOT REGISTERED STOCK ADVISORS BUT WOULD LIKE TO WARN AGAIN THAT STOCK MARKET INVESTMENTS ARE VERY RISKY WHERE YOU MAY LOOSE YOUR ENTIRE CAPITAL LIKE OUR CHIEF EDITOR HAD LOST HIS OWN IN THE STOCK MARKET CRASH OF 1998. STOCK MARKET INVESTMENTS ARE SUBJECT TO MARKET RISK AND OF COURSE PAST PERFORMANCE IS NOT NECESSARILY LIKELY TO BE REPEATED IN STOCK MARKET. 

We once again would like to reiterate that the information provided on this website does not, and is not intended to, constitute investment advice; instead, all information, content, and materials available on this website are for general informational purposes only. Information on this website may not constitute the most up-to-date information. The material is neither investment research, nor investment advice. No reader, user, or browser of this website should act or refrain from acting on the basis of information on this website without first seeking independent advice in that regard. Use of, and access to, this website or any of the links or resources contained within the site do not create an portfolio manager - client relationship between the reader, user, or browser and website authors, contributors and their respective employers. The views expressed at, or through, this site are those of the individual authors writing in their individual capacities only.

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