2 things you should not believe while investing

I was recently talking to an individual investor and during the course of our discussion, I had come up with 3 things one shouldn’t believe while investing in equity. 

DONT OVER-RESEARCH 

Researching is good. It has to be done when we invest in a stock.  But then over-researching spoils everything. Do the minimal amount of research and then Invest a small potion of your portfolio and increase it over áš­ime. 

I will tell you how to become rich. Close the doors. Be fearful when others are greedy. Be greedy when others are fearful. 

– Warren Buffett

BELIVE IN COMPANY RATHER THAN MARKET 

Study a company.  Understand its values, principals before you do the next level of research.  Before you invest, think twice. Think twice that you are investing in a stock and not the market.  However the value  of a stock is essentially determined by the market. But then Company results also matters a lot.  

Learnings from a Finance Book

Last night I was reading a book on Stock investments. 3 important points I wish to share with all of you.

Every human problems is an investment opportunity if you can anticipate the solution.
Investors need to distinguish between activity and results.
What investors should do is to focus on the business and not on market prices.
These learnings are not only important while investing in a stock market but also in your personal life.

Happy Reading !