Invest in many giants
I have two young friends, Sinha and Shetty.
Both call me "uncle" because they are real youth.
They have just finished high school.
But Sinha and Shetty are about the size of a gorilla. Fully
with bushy hair in the armpits. So calling me uncle makes me nervous.
Anyway, let me tell you why I'm talking about them. Sinha
passed the college entrance examination
Of Universities: IIT, NIIT, SRM and AIIMS.
His friend Shetty only took IIT. Why? Shetty was confident.
Because Shetty lets blood run in his veins. It is has studied at IIT since he
was from north.
OK, it's an exaggeration. But not quite. His older brother
studied there when his mother was pregnant. he in her stomach - picked him up
every day from school.
Here is the problem: one day, Shetty received a letter from
the NIIT, who said he was not accepted. NIIT.
Shetty's parents struggle desperately now looking for a
college that will accept it. It's a little late now, they are attractive, write
letters, phone ...
They even think of MIT for him.
Madras Institute of Technology.
It was just fun.
Guess what: Shetty's friend, Sinha, was not accepted either
in IIT. But it is good. Because Sinha was accepted at NIIT,SRM and AIIMS.
He is very relaxed and his parents too.
There is something
like a black swan
Why is Sinha relaxing?
Simple. Sinha has diversified and not Shetty.
Because Sinha and Shetty have experienced a "black
swan" with IIT. Their favorite school did not accept it.
A "black swan" is a term for something that was
completely unexpected. This term is also used on the stock market.
And the black swans arrive.
Let me give you an example of a black swan from the Indian
stock market: the oil spill in the Gulf of Iran, the worst oil Spill in Iran
history, was a black swan for the gigantic oil companies in India. Share owners
saw their shares fall by no more than 50 Percent. Nobody expected. But it
happened.
How to diversify
stocks ?
Here are two basic rules of investing in the stock market.
Rule # 1: Invest small amounts every month.
Rule # 2: Buy Up to 15 Companies > Owning a much amount
in each one.
It is better to vary and buy so much of the companies I
recommend in our list of large cap companies. If you want to buy 15 companies ,
please divide your money equally in 15 large cap companies.
If one or two companies suffer from a black swan, it's you safe.
You have eight other companies that take care of your growth.
Are you ready to start now?
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