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Thank you for your great insights into the world of investing, sir. I sometimes ponder, does the phrase “Investing in stock market” make sense? After all, the majority of people putting their money into equity, are in it for short term, quick, yet high returns. Not many are “investing” as such. As you mentioned, an “investor” is always in it for the long term, and is different from the ubiquitous “stock market investor”. In this day and age of rising prices, and inflation, there’s a clear and growing need for secondary income sources and the stock market presents just the opportunity. It is a way to make money, not earn it though. That makes almost everyone get into the crowd. However, all said and done, as you rightly pointed out, no one has been able to beat the system. Casinos are a great example. So much so, that with evolved technology, beating the system, will become more and more difficult. And therein lies the million-dollar question: How do you make money? What to invest in, when to invest, and when to sell out? Many people have tried to answer this, but no one has got closer to answering it than Warren Buffett. His method of “value based investing”, is a key lesson for novice investors. His idea is very simple, find the real value of a company, and if the current market price is less than what you perceive as the “real value”, go ahead and invest. But again, he hasn’t mentioned how to find the “real value”. Lack of more such techniques, and financial analysis tools, makes people to go with the market trend. If it is a boom, people buy more, and if it is a bust, the opposite happens. People, tend to safeguard themselves, by making themselves part of the “crowd”, or the market. As they say, the nail that sticks out, gets hammered. And no one wants to be that nail. In this day and age, there’s a strong and inherent need for preparation and analysis of markets. One needs to understand that stock market is not a place for luck. Yes, luck plays a part, but preparation, and in depth analysis of context, industry, company, countries, can go a long way in protecting you and your money. Preparation can help bridge the gap between an experience of a “stock market” vs. “shock market”

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