Long-term investors shouldn’t panic over a mild correction, said Vallabh Bhanshali, chairman of Enam Group. He also suggested investors invest in companies with the growth of the business in mind.
He said this during a conversation with Zee Business Editor and Market Guru Anil Singhvi on a Wealth Building Day TV show where he shared his views on the market.
Important things for investors to remember
Bhanshali said market analysis is not easy. But it is important that investors invest with the growth of the business in mind and he suggested going for a long-term investment. He said now was not the time to panic; investing in the stock market because it is the greatest opportunity for wealth creation, he said.
Suggestions for new investors
The president of the Enam group said that there are two types of investors in the market – one who is not a permanent investor, who does not last long and the other who comes with the aim of investing with a long-term view, but their timing is not right. On the other hand, those who don’t put all their money in the market at once shouldn’t worry about timing, he said, they will gradually learn. Bhanshali suggests staying in the market and not panicking about minor corrections.
What to look for before investing in a business?
There are two things to keep in mind when investing in a business, Bhanshali said, – firstly, is there growth potential for that business? And second, am I going to get my share of the profits or not?
Therefore, before investing in a company, one must look at the capacity of the promoters and the intention of the promoters.
Should new investors take special precautions because the domestic market is linked to the global market?
Bhanshali said things are going up and down in the world but if the management of a country is good then the country does not suffer much. Similarly, if the management of the company is good, there is no need to worry.
For more details, watch the full video here:
— Zee Business (@ZeeBusiness) March 24, 2022