Lack Of Knowledge In Shares Can Sometimes Help To Make Money

Subscribe to GoodReturns
For Quick Alerts
Subscribe Now  
For Quick Alerts
ALLOW NOTIFICATIONS  
For Daily Alerts

    You can call a stock market investor stupid, if he lacks knowledge on fundamental analysis of a stock and has invested in the same. But, what if he has made more money then an astute investor, who considers himself a great equity research analyst.

    Lack Of Knowledge In Shares Can Sometimes Help To Make Money
    There are many examples of investors who have made money without any analysis or knowledge of stocks.

    An elderly senior citizen recalls how his friend forced him to buy the shares of chemical giant BASF in the early 1980s.

    He paid a very nominal price for the same. He would get the dividend and the annual report regularly, but did not bother to check what it was.

    It was only recently that he acquired some knowledge and realised with the bonuses the company had given his small holdings had turned very large.

    He was then able to calculate the amount and the value of the shares. Today, the price of one BASF share is Rs 1205.

    "If I had the knowledge and realised the value I would have sold the shares long ago. So, the lack of knowledge of shares led me to just keep it. So, it helped me to make more money," he says.

    There are scored of investors in the country who have inherited shares from their parents and still do not know they are sitting on a goldmine.

    They just hold onto the shares, because sometimes they do not know even how to sell the same. By the time they seek advise they are sitting on a fortune.

    In fact, sometimes if one has the knowledge he tends to sell shares after making a decent profit, while the one who lacks it, just does not know what to do with it.

    He clings onto and by the time he gains knowledge he has made a lot of money, then an astute investor who has sold the same for a profit.

    Sometimes, it's rewarding if you lack the knowledge.

    GoodReturns.in

    Read more about: shares
    Company Search
    Enter the first few characters of the company's name or the NSE symbol or BSE code and click 'Go'
    India's LARGEST EVER political poll. Have you participated yet?

    Find IFSC

    We use cookies to ensure that we give you the best experience on our website. This includes cookies from third party social media websites and ad networks. Such third party cookies may track your use on Goodreturns sites for better rendering. Our partners use cookies to ensure we show you advertising that is relevant to you. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on Goodreturns website. However, you can change your cookie settings at any time. Learn more