Achieve 15% Stock Market Returns with These Strategies
This article is a summary of a YouTube video "Make 15% returns from Stock Markets easily!" by Akshat Shrivastava
TLDR Retail investors can potentially achieve a 15% average return in the stock market by focusing on buying quality businesses, using hedging instruments, and developing an investment system based on successful investors.
Investment Strategies and Approaches
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"Your average return can easily be 15% in the stock market, mathematically proven."
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"No one in the world can predict the stock price of any stock even for tomorrow."
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"There is no point in predicting the prices. As long as you are buying good businesses you will make money."
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"Mr. Warren Buffett, at the peak of his career, started investing in cash flow based businesses."
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"One reason why portfolios may not grow by 15% a year is the habit of profit booking, as highlighted by the story of Mr. Peter Lynch, who grew a portfolio from $100 million to $13 billion by avoiding selling winners and keeping losers."
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"Unless you learn business analysis, you will not be able to succeed in the stock market and you will always go for the thrill in the stock market, not from an investment point of view."
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"Investors who make crazy amounts of money identify trends early and invest in those trends early."
Learning and Adapting in the Stock Market
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Understanding our own strengths and limitations as investors can help us make informed decisions and maximize returns.
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Instead of quitting our jobs or studies to become full-time traders, we should find strategies that work within our busy schedules and prioritize our own responsibilities.
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Warren Buffett's willingness to update his belief system and invest in Apple, despite it being against his investment system, demonstrates the importance of adapting and learning in order to make profitable investment decisions.
Most traders struggle to beat fixed deposit returns, but you can potentially achieve a 15% average return in the stock market by understanding the relationship between GDP growth and stock market growth.
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Most investors focus on stock prices, but they cannot be predicted, leading to panic buying and selling and potential losses for retail investors.
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It is impossible to accurately predict stock prices, so retail investors should use hedging instruments like forward and future contracts to mitigate risks in the market.
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Focus on buying quality businesses with good management, popular products, and consistent profits instead of trying to predict market fluctuations, and develop an investment system based on successful investors like Warren Buffett.
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Invest in industries you have expertise in, understand your limitations, and avoid profit booking by not selling winners and keeping losers.
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Don't sell good stocks for quick profits, learn business analysis to succeed in the stock market and book profits sensibly, avoid downward averaging bad stocks, and consider investing in passive mutual funds if you don't have the time or interest to study the stock market.
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Investors can potentially make higher returns by investing in individual stocks and updating their investment system, understanding changing businesses and trends, and buying good assets, like Warren Buffett and Rakesh Jhunjhunwala, to make a 15% return in the stock market.
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Check the links in the description box for reference material and a helpful product called et Money genius that can assist with creating a personalized investment plan.
This article is a summary of a YouTube video "Make 15% returns from Stock Markets easily!" by Akshat Shrivastava