The stock market always presents an opportunity for great fortunes. For a common investors however the stock market fluctuations, the boom and bust cycles, bear market, bull market and such complicated terms may seem too intimidating. While great fortunes in stocks were made by betting on business cycles it is not possible for a common investor to understand and predict this cycle. Even professional fund houses and savvy investors with advanced information have failed in this front. What is the best strategy for a common investor? Identify an outstanding good company and stay with it in all good and bad times. Do not get panicked by bust cycle, bear market grip etc. If you study the top 100 companies which are listed in NASDAQ, NYSE, European stock markets, etc. you will observe that most companies’ stocks which you could have bought for $1000 some 15 years ago are worth $50,000 and much more. Within the lifespan of most investors huge opportunities were available to make substantial fortunes for oneself or one's children.
These opportunities did not require purchasing on a particular day or a particular cycle or at the bottom of a panicked market.. You could have bought the shares anytime of the year and still would be making such a tremendous profit.. What was important was to identify those few companies which would be outstanding wealth builders. Of the thousands of stocks listed in any market only a few will present these opportunities most others may give only moderate returns. Do not try to time the market and do not try to buy low and sell high. These are neither possible nor required to make great fortunes in any stock market. . These outstanding opportunities exist all the time more so now than before. There are many ways to identify the sectors and companies which would tremendous wealth builders in future. Imagine if you had identified Microsoft in 80’s and stayed on with it during 1987 stock market crash. You would be making a great fortune even after accounting for the 2000 Technology meltdown and post 9/11 recession.
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{ 2008 05 31 }