'Grow with India'
I am Isha. Welcome to my first website! One fine day, I asked my parents to create a website for me. Isha Equities is the result of my request. My dad has been into stock investing for the last six years. But, I don't know anything about it. So, I started asking him questions. Our conversation went as follows.
Me: Dad! What are equities?
Dad: Equities are nothing but shares of a company
Me: But, what are shares? I don't know anything about them?
Dad: Shares are part ownership of a company. If a company needs money, it divides ownership of the company into parts and sells it to the public on the share market.
Me: Ha! I got it. If we buy shares of a company, we become owners.
Dad: Yes! We become partners of the business.
Me: But, what benefits we get by buying shares?
Dad: We become owners and the company distributes its regular profits to its shareholders in the form of dividends. We also get benefit in the form of stock price increase.
Me: Do we get benefit if the share price increases?
Dad: Yes, only when we sell the share after it increases. There is a downside, we don't get dividends after selling a share.
Me: Where do we buy and sell shares, Dad?
Dad: On the stock market. We also call it Secondary Market.
Me: Ha! What is investing, Dad? I often hear it on TV?
Dad: Investing is nothing but supporting a business with our money for long term. For example, if we buy shares of a company and keep them with us for a long-time, it is called investing.
Me: How many days is the long-term, Dad?
Dad: It is not days, but years. As far as I know, if we keep shares of a company for more than four years, it is called long-term investing.
Me: What is the use of long-term investing? We are just keeping our money locked?
Dad: Not like that, Isha! Long-term investing is the highly desirable strategy. Most of the people who became rich by investing in stocks follow the long-term approach. Short-term trading is always dangerous.
Me: Huh! I don't get it, Dad? Will you explain in detail?
Dad: Sure, baby! If we had bought TCS shares for Rs 1,50,000 in Jan 2005, the amount would have become Rs 3,00,00,000 in Jan 2022 including the bonus shares issued by the company. And, Rs 10,000 invested in Wipro shares in 1980 would have become Rs 1200 crores today. But, if we do trading, we don't get such a compounding return.
Me: Wow! What a profit! That means we should forget it for a long time after investing in high-quality companies. Am I right, Dad?
Dad: Yes baby! Such type of investing is also called 'Coffee Can Investing'. When banking system was not started in the USA, American people used to keep their valuables in a coffee can and hide it somewhere. They often forgot about it. Most of the Americans who earned a lot on stock market were those who forgot about their shares after buying them. Probably, they were preoccupied with something else. Certainly, not about their shares. That is the wonder of the Coffee Can. It compounds our money when we are not thinking about it.
Me: That means, we can become rich by investing in the stock market and forgetting about it.
Dad: Yes, baby! I don't say every stock will give massive returns. But, one or two stocks can change our life forever. We must invest in 10 or 20 high-quality companies and then comfortably forget. Most of the people can't do it. That's why they earn meagre returns.
Me: What stocks have you bought, Dad?
Dad: The following is the list of our stocks
Our Coffee Can Portfolio
Target: Rs 2100 ( Jan 2023)
Target: Rs 1900 ( May 2023 )
Target: Rs 2100 ( Jan 2023 )
Target: Rs 524 ( Jan 2023 )
Target: Rs 2500 ( Aug 2023 )
Target: Rs 480 ( May 2023 )
Target: Rs 234 ( Jan 2023 )