Taher Suterwalla mentions 3 points to keep in mind before investing
The age old dilemma of investing in the right stocks or bonds still persists most of us. And owing to the lack of financial literacy, we allow stock brokers to trick us into buying stocks that turn out to be bad bets.
Haven’t we learned anything from Leonardo’s Movie ‘Wolf of Wall Street’ where Matthew Mcconaughey clearly mentions that practically nobody can predict if a stock price would rise or fall, least of all stock brokers. Taher Suterwalla has been coming across many people who think it’s wise to follow a stock broker’s advice. Now while this is what most of the world believes, there is an extremely high possibility that you might get your sums wrong if you blindly follow broker’s advice. Taher Suterwalla, founder of Trading Equity and View Emirates tells people 3 points to keep in mind before investing in stocks.
1. The longer the better: The magic lies in compounding. It is wise to make long term investments in order to get high returns. Just like Warren Buffet said, “Life is like a snowball. The important thing is finding wet snow and a really long hill.”
2. Don’t put all eggs in one basket: It is recommended to own bonds but one must not neglect inflation. So always own asset classes out of which some would out-perform inflation.
3. Pick asset classes and not stocks: This means owning index funds and exchange-traded funds that track most liquid markets. Apple stock is one of the examples where it is recommended to pick asset class and earn high returns.
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