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Share price irrelevant to make money in stock market: A market veteran's offbeat advice for young investors

Share price irrelevant to make money in stock market: A market veteran's offbeat advice for young investors

Investing in stock markets can be a baffling experience. So what should a young investor do? This market veteran has all the answers.

Saurabh Mukherjea opined that the more you read at early age, the more money you make in the time of great change. Saurabh Mukherjea opined that the more you read at early age, the more money you make in the time of great change.

Every young investor who dabbles in the market to make money is usually baffled at first to understand the way it works. The key questions that keep popping up in his/her head includes what needs to be done in order to understand the market, and connected to this are other questions: What to read? What key parameters to look after for buying shares? Providing a much-needed clarity, Saurabh Mukherjea, Founder and Chief Investment Officer of Marcellus Investment Managers, in an exclusive conversation with Business Today, said that referencing share price for making profits does not work. Share price is an irrelevant piece of information.

"When our better half asks us to buy carrot and vegetables, we go out in the market, we do the best we can. We don't sit at home and say tomorrow's menu we will discuss based on forecast of onion prices and nobody does that. Neither should anybody invest referencing the share prices, people do that thinking referencing the share prices will allow them to make money but that does not work, and I think share price is an irrelevant piece of information," Mukherjea said.

Giving a lesson to young investors who wants to make profit in Indian markets, he said that reading is the key as far as making profit is concerned.

"Read read as this is the mantra for young investors who wants to make money. Unfortunately, we have come to an era where people are trying to derive education from social media, that does not work. You cannot learn from social media. Read annual reports, read books on investing such as Diamond in the Dust, Warren Buffett's autobiography The Snowball, etc," he added.

Mukherjea opined that the more you read at early age, the more money you make in the time of great change. Talking about companies, he said that promoters who does not steal money and demonstrate business confidence and those who built dominant franchise will make money for him going forward.

"Whether they will make money next week, next year that is something I don't know," he added further.

Also read: Rakesh Jhunjhunwala on comparison with Warren Buffett: 'He's far, far ahead'

Also read: This is the secret behind Warren Buffett’s vast wealth and here's how to use it

Published on: Sep 30, 2022, 12:17 PM IST
Posted by: Mehak Agarwal, Sep 30, 2022, 12:11 PM IST