It's my Birthday Today :)

Hello Friends!! 

 It’s my Birthday today .. J J …and am too, little bit of happy & excited like everyone else on Birthday’sJ, no matter how old are you, you too have that pleasant feeling about the year coming ahead, we are happy that we have passed off one year, and optimistic for the coming one. Last year of mine was a mix but  the year gone by left many joys and memories. I always write something for all you my dear reader friends on this day, as this is a day when I speak my mind and heart out.

The year gone by was beautiful; off course on market front, it cannot be said so, but would also say it was not bad either, at least for me and my stocks, yeah we were not in green but did well by benchmark’s performance and this does not discourages me to be invested. I always advocate stock market investing. I truly believe that India has huge potential and is definitely a long term story driven on consumption demand and is better positioned to enjoy demographic dividends. Indian economy is of Rs. 105 lakh crores ($ 1.59 trillion) with our stock market capitalisation of Rs. 94.71 lakh crores (as on 1 April 2016), with registered investors of 3.07 Cr (2.45 % of our total population). Whereas, US has market capitalizing is of $ 19.8 trillion which is also the biggest representing 52 % of the world’s market cap. US has population of roughly about 31.90 Cr and investing population in stock markets are whopping 14.35 Cr or I should say 45 %, and we at mere 2.5 %. India has savings rate of 36 % and still only 7 % of it comes to the equity market. Indian Retail investors hold around $ 16 billion of Indian equity. These figues says a lot and we should understand the potential of our strength, encourage investing in equities and should not shy away from stock markets, terming it as “Gamble”. 

Indian corporates have tremendous positive earning potential, & there are vast numbers of businesses of various kinds available at better price. What we misunderstand is that we buy at wrong price and most often we buy on tips, and there’s where we fall off. I truly believe that “Valuations are the slave of Earnings”, if you trap the earnings right you get the valuation right, off course with sentiments the stocks do falls back, but at the end the valuations do prevails. Look at the stocks with net profit margins above the fixed maturity instruments, with minimum debt and high ROE & ROCE’s. Now, there are many who would say we don’t understand these terms or we dont have much time to spare to, for them I would say go for mutual funds- let the expert fund managers do the job for you, but do invest, be the part of new vibrant India. Built up your retirement fund, start investing in mutual funds in Systematic manner via SIP (systematic investment plan). Take a minimum investment goal for five years at least, start investing little bit every month and you shall surely win, and those who are enterprising enough should look out for stocks with high net profit margins, low debt, high ROE & ROCE’s and off course strong Cash Flows. In all do invest and study well before investing. There’s lots of opportunity out there and participate in the growing economy of ours.

I am optimistic about markets and beileve that more positives are yet to come. Be positive and Be invested. Lastly I would like to thank all you wonderful people, who have become impairable part of my life now, who have constantly encouraged me and inspired me in all aspects of my life.

Again, I take this opportunity to give Thanks to all my reader friends for being there for me, and encouraging me...

                                           God Bless You All !!!

Thanks to my parents who made me what I am here today And Thanks God for all of it !!!

Warm Regards,

Bhavikk Shah.  

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