If someone wants to invest Rs 500,000 in only one company shares and has time to let it mature it for another 365 days and have no credit worries then what is the best share to buy?
An intriguing question !!!
Probably you may not expect any response now, but since this was in my mind for last couple of days, I thought to give an opinion.
My suggestion - Do not invest in any company shares Why ?
You may have probably heard that...."share markets are driven by FEAR and GREED. " If you invest in a company share and wait for 365 days, you may get caught to either of the above mental status .How ?
After investing , you can't avoid looking at the price (daily ?). If you see the price is falling , than the purchase price, you are gripped with fear psychosis.
Will I loss my capital ?
Suppose the price of the share is improving compared to the purchase price. However you will notice, there are some other share prices are improving at a rate much higher than your one. What,s the feeling you are getting ? A worry, because one can't avoid the feeling , I should have invested in that share . Greediness...what else!.
There can be a remote possibility that your share becoming the highest appreciated share at the end of 365 days. Even that happens at the end of the period, during the period
, you are subjected to either fear or greed, depending on the price fluctuation.
Investment in a set of shares , instead of one , will not result in overcoming above.
So... is it worth spending 500,000/- and subject to fear and greed psychosis for 365 days ?
Probably , you can observe the functioning of above psychosis , just reading through some posts in this Forum.