The best way to invest money in equity markets for long term is to invest in business you understand and the business whose products will never go out of demand. Rather the demand for their products will go up with time and investors don’t mind paying a premium price for it.
Warren Buffet has advocated time and again that the best way to invest money is in business whose assets, growth, and value can be easily measured.
This explains his rationale behind investing heavily into companies like Apple and Coca-Cola where according to him it is quite easy to quantify how many phones or bottles of Coca-Cola they sell each year and immense brand value that they enjoy which gives them a powerful advantage over their competitors.
There are many investors who have successfully adapted this strategy as the best way to invest money to create wealth.
One such inspiring story is of the late Chandrakant Sampat, a stock market veteran known to many as a Warren Buffett of India. Chandrakant Sampat strongly believed that the best way to invest money in India is to invest for long term in companies which have been existing for a long time and will continue to do so in future. His decision to invest for long term in companies like Gillette, HUL, Nestle & P&G proved right as over several decades these stocks multibagger generating manifold returns.
Starting from nothing, Chandrakant Sampat’s passion for wealth creation, along with his patience and knowledge about the best way to invest money in India, helped him build a massive fortune.
So what are Chandrakant Sampat’s secret to become a successful investor?
- Investing in a business you understand is the best way to invest money in India
- Invest in a business with either zero or very little debt
- Invest for long term and wait patiently
Here are few reasons why long term investing in the right opportunities is the best way to invest money in India:
- When you invest for long term, emotions don’t affect your investment decisions like the temptation to book profits on minor increase in stock prices or panic based selling on correction.
- When you invest for long term, power of compounding works in your favour.
- Stock markets are highly volatile in the short time due to multiple economic, global and political factors affecting it however they tend to stabilize over the long term.