I do not just want to spend time in the market, I want to be invested in the market. You can be rich if you trade in the market day in and day out. But to be filthy rich, you need to be an investor. You need to invest your time, your life, and your discipline. Not just your money.
How in movies we see that if we want something badly enough, we get a big revelation and then sail smoothly towards our goal, life isn’t like that fairytale. To get what you want in life, to reach your goal and to reach your destination, one needs a lot of patience, hard work, and discipline. When it comes to stock market and investments, patience, hard work, and discipline needs to be doubled as you are not working with just your rules but also the rules of the fundamentally changing market.
Walking down memory lane, all the way back to 2016, our KK sir recalls his first investment, first loss, and first heartbreak in the world of numbers, bulls, and bears. Taking out money from his nagarik lagani kosh and sanchaya kosh which was around 3 lakhs to invest, after a few months dropped down to 1.5 lakhs. As it is said, bad luck follows more bad luck, KK sir put out his hydropower shares for grab but no one was willing to buy it because of market crunch. With the money he had left, he bought shares in Shikhar Insurance, Nepal Life Insurance, Sana Kisan Laghubitta, Nabil Bank, Global IME, Nepal Investment Bank, Chimeki Laghubitta and he bought shares of commercial banks. The market can be tricky and risky and to be at the top of your game is the one thing that matters. As said, the key to being a good investor is patience, as a new investor in the market, KK sir sold his shares thinking that the value would decrease. That is not what happened.
The tables turned and the winds flew in his direction when he got the bonus share of Shikhar Insurance. He firmly believes and states that, “Trading is buying and selling of shares in the short run to gain profit from the change in price. Investing is buying shares and keeping it for a decade or more and during this time, earning bonus and dividend from the company while maintaining the share.” Sharing his story on how the investments he made came in very handy during the first lockdown, he adds, “I believe in the power of compounding. If one keeps shares of a nice company with good bonus and benefits for a long time, it will compound into a very great value one day but this has to be a 15-20 years’ worth of investment.”
Adding on, he says, return on investment in land has been around 12%, return on share market has been around 15%. This game of numbers, graphs, and money is often played by experts. This is a difficult place to make easy money and if you are not disciplined enough, if you do not have an opinion of your own, this market might just chew you up and spit up like you are nothing. So, make sure that you go for a long run. Play smart, no one loses money in the long run if you know how to reap the benefits and bonuses. To the new investors out there, look for companies that give you a long-term benefit.
Interested in markets and economics?
Learn more about our BBA Investment & Economics program here.
