Picking Best Stocks for Yourself

pranjal kamra

24 Mar 202316:06

Summary

TLDRThe video script discusses the common pitfalls of retail investors in the stock market, highlighting the majority's tendency to lose money due to ineffective strategies and a lack of genuine profit. The speaker promises to guide viewers in creating a profitable portfolio with 15 carefully selected stocks, emphasizing the importance of understanding and implementing a simple yet reliable strategy. The speaker disclaims the need for expensive courses or seminars, advocating for a disciplined approach to investing that can potentially double one's money every few years, without the stress of day trading or gambling.

Takeaways

📈 The speaker intends to guide the audience to create a portfolio of 15 best stocks, which they can pick themselves.
🚫 The speaker emphasizes there is no secret formula or course to be sold, and the strategy shared is simple and not based on complex mathematics.
💡 The speaker suggests that the strategy is not a guarantee for profit and that each person's retirement needs are different, hence the strategy should be tailored to individual circumstances.
📉 The speaker notes that a significant percentage of investors are in a loss, highlighting the need for a reliable profit method for retail investors.
🤔 The speaker questions the effectiveness of social media profit posts, suggesting that most are not genuine and are only for show.
🚫 The speaker discourages gambling in trading, warning of the risks of significant daily gains that could lead to substantial losses.
🌟 The speaker encourages investing in companies that are familiar and part of the audience's daily life, rather than chasing trends or investing in unknown businesses.
🛑 The speaker advises against investing in companies just because others are doing so, emphasizing the importance of making informed decisions.
🔄 The speaker mentions the power of compounding and how starting with a small amount can grow significantly over time with the right strategy.
💼 The speaker uses everyday examples to illustrate the point of investing in what you know and understand, such as toothpaste brands, clothing brands, and food delivery services.
🎯 The speaker ends with a call to action, urging the audience to implement the strategy with discipline and patience for long-term wealth creation.

Q & A

What is the main purpose of the video mentioned in the script?
-The main purpose of the video is to guide viewers on how to create a profitable stock portfolio using a simple strategy and by selecting around 15 stocks themselves, without selling any courses or offering complex financial advice.
What issue does the speaker notice about the majority of investors according to the script?
-The speaker has noticed that a significant percentage (90% to 95%) of investors are in a loss status, which prompts the creation of the video to help retail investors achieve reliable profits.
Why does the speaker claim that many financial influencers may not be as profitable as they claim to be?
-The speaker suggests that many financial influencers may not be as profitable as they claim because if they were, they would not need to sell courses, conduct seminars, or post profit screenshots on social media to prove their success.
What does the speaker promise not to do in the video?
-The speaker promises not to sell any courses, not to conduct a seminar for a fee of ₹50000, and not to provide a fully fed list of 15 stocks, emphasizing that the strategy is not guaranteed and varies based on individual circumstances.
What is the speaker's view on the potential of compounding in wealth creation?
-The speaker believes in the power of compounding, suggesting that starting with a small amount and following a disciplined strategy can lead to significant wealth over time, potentially making one a millionaire within a few years.
What advice does the speaker give about avoiding gambling in trading?
-The speaker advises against gambling in trading, warning that it can lead to significant losses and is not a sustainable way to make money. Instead, a disciplined approach to investing is recommended.
What is the speaker's stance on investing in companies without understanding their business?
-The speaker is against investing in companies without understanding their business, comparing it to not knowing the subjects one is studying for an exam, which would lead to failure.
What is the speaker's opinion on the importance of investing in familiar brands or companies?
-The speaker encourages investing in familiar brands or companies, as it is based on personal knowledge and experience, which can lead to better decision-making and potentially better returns.
How does the speaker suggest one should choose the stocks for their portfolio?
-The speaker suggests choosing stocks based on personal use and preference of products or services, implying that investing in what one knows and uses can be a sound strategy.
What is the speaker's view on the time frame for achieving financial goals through the discussed strategy?
-The speaker believes that following the strategy with discipline over a period of 15 to 20 years can lead to significant wealth, even suggesting the possibility of becoming a top expert or a millionaire.
What caution does the speaker give about the herd mentality in stock market investments?
-The speaker warns against the herd mentality, where one invests in stocks just because others are doing so, without understanding the business, which can lead to losses.

Outlines

00:00

📈 Stock Market Investment Strategy

The speaker introduces a strategy to guide viewers in selecting around 15 stocks to create a profitable portfolio. They address the common issue of retail investors losing money and criticize the financial industry for promoting unrealistic expectations. The speaker emphasizes the importance of a simple, reliable investment approach without the need for expensive courses or seminars, suggesting that compounding returns can lead to significant wealth over time without the need for aggressive trading or stress.

05:03

🤔 The Psychology of Investing

This paragraph delves into the psychology behind investment decisions, where the fear of missing out (FOMO) and the desire to appear smart can lead to poor choices. The speaker warns against investing in companies without understanding their business models and stresses the importance of investing in familiar brands and products. They use everyday examples to illustrate the point, such as choosing toothpaste or clothes, and encourage viewers to invest in companies they are familiar with and trust.

10:05

🛍️ Relating Investments to Daily Life

The speaker continues the theme of investing in what you know by relating it to everyday purchases and preferences. They suggest that by investing in companies that produce goods and services one uses and likes, such as a preferred toothpaste brand or a favorite restaurant, an investor can make more informed decisions. The paragraph also touches on the idea of changing one's mindset from being a consumer to being a part of the company's growth, potentially leading to wealth accumulation.

15:06

🚀 Long-Term Wealth Creation

In the final paragraph, the speaker encourages viewers to think long-term and to invest in a disciplined manner, suggesting that following a strategy consistently can lead to significant wealth creation over 20 to 40 years. They emphasize the importance of patience and discipline over chasing quick profits and highlight the potential to transform one's life and that of future generations through wise investing.

Mindmap

Keywords

💡Investing

Investing refers to the act of allocating resources, typically money, with the expectation of generating an income or profit. In the video's context, it is about creating a portfolio of stocks to achieve financial returns. The script mentions guiding the audience to pick stocks and build a profitable portfolio, illustrating the core theme of investing in the stock market.

💡Portfolio

A portfolio in finance is a collection of investments held by an investor. The video's theme revolves around building a portfolio of the best stocks, which is a key strategy for long-term investment and wealth creation. The speaker guides the audience to create their own profitable stock portfolio.

💡Stock Market

The stock market is a platform where shares of publicly traded companies are issued and traded. The video discusses the challenges and opportunities of the stock market, emphasizing the need for a reliable strategy to navigate it successfully, as indicated by the mention of common investor losses.

💡Profit

Profit in a financial context is the positive difference between the revenue and costs of a business or investment. The video's theme of creating a profitable stock portfolio is centered around achieving profit through wise investment choices, as evidenced by the speaker's discussion on the potential for doubling one's money.

💡Gambling

Gambling typically involves wagering money on an event with uncertain outcomes, with the primary intent of winning additional money. In the script, the speaker warns against treating trading like gambling, highlighting the importance of strategy and discipline over risky, speculative behavior.

💡Strategy

A strategy in the context of the video refers to a carefully planned approach or method for achieving a desired outcome, such as financial success through stock investments. The speaker emphasizes the importance of a simple yet effective strategy for building a profitable portfolio.

💡Compliance

Compliance in finance means adhering to rules or regulations. The video suggests that the speaker's strategy is responsible and compliant, as it is not based on random stock picks but on a thoughtful approach to investment.

💡Influencers

Influencers are individuals who have the power to affect the purchasing decisions of others because of their authority or knowledge in a specific area. The script criticizes some influencers for promoting unrealistic profit claims, cautioning the audience to be discerning about the advice they follow.

💡FOMO (Fear of Missing Out)

FOMO is a term used to describe the anxiety or fear that one might miss out on an enjoyable experience or profitable opportunity. The video script mentions FOMO in the context of investing, where people may be pressured into making hasty decisions due to the fear of missing out on gains others are experiencing.

💡Brand Loyalty

Brand loyalty refers to a consumer's commitment to repeatedly buying one particular brand over others. The speaker encourages the audience to invest in companies whose products they use and trust, suggesting that personal experience with a brand can inform investment decisions.

💡Compounding

Compounding in finance is the process by which an investment grows exponentially due to interest or returns being added to the principal amount. The video emphasizes the power of compounding as a strategy for wealth accumulation over time, with the potential to transform small initial investments into significant wealth.

Highlights

The speaker introduces a strategy to guide individuals in selecting around 15 stocks for a portfolio without selling any courses or services.

The speaker has noticed that 90-95% of investors are in a loss, suggesting a need for a more reliable profit method for retail investors.

The strategy shared is not a secret or based on complex mathematics, and it does not require a seminar or course purchase.

The speaker emphasizes that the strategy does not guarantee profits and will not provide a full feed of 15 stocks as it is not investment advice.

Mentions the power of compounding and how starting with a small amount can lead to significant wealth over time without giving time, money, or stress.

The speaker warns against gambling in trading and the potential risks of significant daily gains leading to substantial losses.

The importance of not following the crowd in investments and the 'fear of missing out' (FOMO) mentality is discussed.

The speaker advises against investing in companies one does not understand, even if they are popular or recommended by others.

The concept of investing in companies that one uses and trusts in daily life is introduced as a practical approach.

The speaker suggests that by investing in familiar brands, one can save on expenses and potentially earn from their growth.

The idea of not investing in companies that are performing well just because they are currently giving good returns is presented.

The speaker emphasizes the importance of discipline and patience in following the investment strategy for long-term success.

A call to action for viewers to create their profitable table portfolio by implementing the discussed strategy is made.

The speaker shares personal insights on the potential of compounding effects and the importance of starting early in investing.

The potential for viewers to become wealthy by following the strategy and the impact it could have on their lifestyle is discussed.

The speaker encourages viewers to think about their favorite stocks and how they would pick them, suggesting a more personal approach to investing.

A final note on the importance of not chasing quick profits and the value of a disciplined, long-term investment strategy is highlighted.