World's legendary investor's strategy to make money in a falling market. | Stock Market News.

 

What strategy to adopt to make money in a falling market?

The stock market is currently in recession. Sensex and Nifty have given negative returns to investors this year. Investors don't understand. What strategy should be adopted to make money in this falling market? Should we book the profit or shares should be bought at a lower price. You will get answers to all these questions from the world's legendary investor Warren Buffett.

In this article, we will tell you the investment mantra of Warren Buffett. By adopting Warren Buffett's strategy, you too can make money in a falling market. First, let us give you a little information about Warren Buffett. No volatility in the stock market escapes the connoisseurs of Warren Buffett. Warren Buffett is included among the 10 richest in the world based on investment in the stock market.

It is said that Warren Buffett can make gold by putting money in the soil. If we talk about successful investors, their name comes first. Warren Buffett bought his first stock at age 11 and started paying taxes at age 13. It was in 1965 when Warren Buffett invested in a loss-making textile company, but as of today, it has more than 60 companies including Jericho, battery maker Duracell, and a restaurant chain-Berry Queen, companies have proprietary rights.

This year, the effect of the recession on the stock market has also shown on Warren Buffett. Warren Buffett's wealth has decreased by $12.5 billion since January 2022. Now Warren Buffett has a net worth of $ 94.4 billion, but it is not that Warren Buffett will stop investing money in the market, fearing this fall. Warren Buffett says that it is easy to ride the wave, but hard to face.

When there is a fall in the stock market, then all this becomes true for them. Most investors panic and give up. He feels that he cannot face this danger and if he stays here for a long time, then he may also suffer. The loss which is not caused by the fall in the stock market is more hurt than that makes decisions made in panic. The storm of recession passes in the market. Every time there is a downtrend in the market. Retail investors get nervous, but in times of decline, investors should adopt the mantra of return. 

When the market goes down, instead of being afraid like others, you should be greedy. The meaning of this, Warren Buffet's strategy is that when other investors are making a rash purchase, you should invest very carefully. But when there is a downturn in the market, people are selling fearfully, then you should take advantage of that situation and buy. Do not let the heart dominate the mind, that is, invest money in stocks based on research. While investing money in the market, it should not be seen that the share price Instead of what it is, look at the business of that company.

There is always a potential for growth in a quality company. Investors should invest in the stock market for a long period. There is less scope for loss in long-term investments. Checking share prices again and again after investing is the wrong strategy. Selling or buying worthless shares results in a loss for the investors. Always remember the difference between the market price and the actual value of the share, the real value means whether the price of the share is reasonable or it is a temporary for some time.

If success is water in the stock market, then learn to believe in yourself. Instead of taking advice from others, again and again, research the stock yourself. Always diversify your portfolio. If you want to make money even in this falling market, then always keep in mind the investment mantra of Warren Buffett, the scope of this loss will be greatly reduced.

The investment strategy of Rakesh Jhunjhunwala:

5 July 1960 Rakesh Jhunjhunwala, India's big bull, and leading investor was born on this day. The bugle, called the Warren Buffett of India, started with just ₹5,000 in 1985 and today his net worth is ₹43,00,39,000.   All investors keep an eye on Rakesh Jhunjhunwala's stock buy or which share is selling.

These days the stock market is in recession. In such a situation, people and general investors are closely watching the activities of big investors, due to which the investors in the market are getting heartbroken, but from the opinion of connoisseur investors like Rakesh Jhunjhunwala, how do you take care of your investments. At one time Rakesh Jhunjhunwala was bearish on the stock market. 

He made huge profits through short selling in 1992 when the Harshad Mehta scam was exposed. Today he has become a big bull in the stock market. He has earned crores from the market. Let us know what is the investment mantra of Rakesh Jhunjhunwala by which you can become rich by investing a small amount. The first mantra that Rakesh Jhunjhunwala is giving is to give time to your investments. 

That is, from Jhunjhunwala's point of view, one should always invest in the long term. If we talk, then beginners are advised to invest for a long time. He believes that instead of earning profits in the short term, time should be given to multiply the investment long-term. According to Jhunjhunwala, you will have to wait a bit to give the money in the market time to mature, or else you will not get the return. 

The same Rakesh Jhunjhunwala says that the share price of the company does not decide whether you should invest in it or not, but the value of the company matters more. Often people prefer to go for higher-priced stocks, but it is important to see how the company has performed in the last one or five years.

If the company has a good outlook, it will give you good returns despite the ups and downs in the stock market. That is, look at the value of the company, not the price. You may have a good amount to invest. But you don't need to invest all the money in one go, the desire to earn a profit is good, but the rule says that only a little investment guarantees better returns. While investing money in any one slab, divide your investment in installments and buy from time to time.

If the stock goes down, keep buying. This will reduce your buying average. Also, look at the debt of companies. In the stock market, it has to be seen how much debt is on the companies. If the wealth is low, there will be no cash surplus on the companies. But if the debt is more then the valuation of the company can fluctuate at any time. Make sure to review the debt of the company before investing as we know that investing in the stock market is not always as safe as the banks.

If there is a big return here, then there is no risk. That's why Rakesh Jhunjhunwala says that it is important that you invest money only after taking complete information about the company, you should not invest money in a stock just because others are investing because others may be capable of taking a loss, but you are probably capable. Don't be Also, an attempt has been made to know the cash surplus.

If a company performs well in the stock market, it doesn't need to give you good returns. Therefore, it is important to check the background of the company before investing and see how many dividends the company has given. Dividend holds a lot of importance in the stock market. If the company is paying dividends regularly for a long time, then it means that you do not have any shortage of cash.

If companies with cash surplus perform well, then it is you who keep these tips of Jhunjhunwala in mind and consult an expert before investing. Also, do not be worried during a downturn in the market, when you have such an opportunity, hold your money. Keep in mind the things mentioned above and if you have entered the market, then be patient.

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