Never invest in a business you can't understand.
When you buy a stock, you are not just trading a price. you are buying a piece of a real business.
If you don’t understand how the company makes money, what drives its growth, its risks, and its industry, you are basically gambling, not investing.
When you buy a stock, you are becoming a partial owner of a business. Your returns don’t come from daily price movements, but from how well that business performs over time.
Prices may fluctuate because of news, emotions, or market noise, but value is created by earnings, cash flow, and long term growth.
If you don’t know:
• how the company earns revenue
whether its profits are sustainable
• what competitive advantage it has
• what can go wrong in its business or industry
then you are relying on luck and sentiment. That’s speculation.
Real investing means asking:
• Would I be happy owning this business even if the market shuts for 5 years?
• Does this company solve a real problem and do it better than others?
• Is the management trustworthy and capital-efficient?
In the short run, the market is a voting machine.
In the long run, it’s a weighing machine.
Invest in businesses, not tickers.
Patience, understanding, and discipline beat excitement every time.
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All the best for your Trading & Investing journey!
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