so I will cover that thing softly. If he talked about mutual funds, then this is what happens in Sensex. Do you know? How many of you know that there is a group of stocks that is running, running, running? Don’t take names, brother. And everyone asks me this. That man, this Adani…Sorry, sorry, friends.
So many people keep asking me this. That when will this run stop? Some people say that P-evaluation. How many people have seen P-evaluation of Adani Green how many have seen? How many have seen the transmission? Too many of you have seen? One of you knows? But still, those stocks keep on going up. And people ask why?
There is an answer to that. In 1992, when Sensex was 2615, then the total return was 37.7%. But you know, fundamentally, the return was only 5.8%. Rest, speculative. Speculative is always trading activity. You understand one thing first, friends. Those who are thinking that I will make 100x or 200x, the biggest investors have said one thing.
That we knew that we have a skill till 4x. Beyond that, it’s more than luck. I am being blunt over here, but it’s not just skill. The most interesting thing is that we are told a story. How many people have heard this? If you had 60,000 rupees in 2000, and you had heard the story of Aisha’s bike, how many people have heard that story?
Have you heard? MRF, Aisha, and those Vapor guys. They are 10,700 crores. And 15-year-old kids have made a deal. That if you will invest for 30 years, you will die 30 years before. So you have to understand this thing. At that time, those who don’t know about Aisha, I have seen a little bit of Aisha Motors, there are a lot of people.
So in Aisha Motors, even their management didn’t know that it will run like this. They were going to have a deal with a truck company, a Volvo deal, because of which people were buying it. That deal has not happened till date. It has not happened till date.
The bike came and the bike went, because of which the prices increased. So remember in the first point of investing, that things are unpredictable. And if you do only fundamental, then in 92, only 5.8% was fundamental, in December 93, 1.3%, and in December 99, Sensex has given a return of 65.1%. How much?65.1%
And the fundamental was minus 8.7%. So next time, when you see stocks running in a bull phase, don’t ask yourself why it is running. Because you can run as much as you can think. So you guys go home and do your homework, what happened in 2020 and 2022, you will get the answer. So those who ask, why is the market running? Why is the market running?
A sir comes on The is running, there is nothing like that. There is nothing like that. We will not take anyone’s name. And the same S&P 500 is also that thing. So this is the first lesson. The second is very important, I will build up a perspective. And I think, all those sitting in front, from pushkar jig to Sub Ashish Bhai, Anent Bhai, Shari Bhai, everyone will not understand this thing.
Has everyone seen this chart? Somewhere. What is this? Warren Buffett sir’s net worth? How much did it grow? Seeing these stories, all the pages of Instagram have increased their followers. Correct? He made the most money out of 60.
How many of you are Warren Buffett sir’s fans? Say yes. Yes. Very good. Now I will give you an interesting perspective. Who is the first person? Siddhartha sir. Second? Siddhartha sir. Siddhartha sir will tell you, everyone watches Wigwam. And third? Vijay. It is believed that the singers are very stress free, they enjoy life, they enjoy something, they enjoy life, likewise celebrities everyone says. What was common in all three? Heart attack.
Now let’s go back. Just imagine, if Warren Buffett sir, instead of this, now you understand, if Warren Buffett sir, before 60,in 40,if for any reason, he dies, would you know Warren Buffett sir today? Yes. Have you ever thought about this? We are all saying, keep investing, keep investing, keep investing, but think about life too.
That’s a different perspective you need to understand. Everyone. Just imagine, Buffett sir is living in Omaha, let’s say he lives in Delhi, he is taking a car, he spits, there he is, he is stressed. His wife is telling him to get groceries from the market, his kid is saying that he didn’t get choler battue today. How stressed would he be?
Would he ever become Warren Buffett? What do you think? And late Rakesh Jhunjhunwala sir has also said one thing, that the biggest mistake I have made is that I have not taken care of my health and lifestyle. So I know I eat a lot of food, so I am not the right person.
But, you people please take care of this too, because with investment, money will only make the person who lives longer. OH, what a great thing. So, the first and second perspectives to live. Okay, who is this? Who?Who?Who said Bahubali? This is Troy. A very good story. This guy, who is he? Brad Pitt. That’s us, Broad Pitt. This is Brad Pitt.
You have to understand one thing. He and we have nothing to do with India. He has six packs; we all have family packs. But, in this story, there is a very interesting thing. In this story, you will find an OTT, which the whole neighborhood watches with the same password.
What is it? Netflix. You will find it on Netflix. Where do you get the food from? What? Enough. I was watching the show. Whenever you start a video, you start with food. Where do you start with food? India is India. Nothing starts without food.
So, we start with that. Coming to the point, you have to understand one thing. There was a king named Hector in this movie. The king’s son. As soon as he died, Troy’s downfall started. You have to understand one thing. Let’s link this to the stock market. In the stock market, you often ask me, how do we know which sector is going to go down?
How do we know which sector is going to go down? When the sector leader starts moving, then you understand that there will be a problem. When ILFS and DHFL started happening, which sector moved? Not just property, even NBFC moved. You tell me, when SBI and PNB came out in Spathe entire PSU pack started moving.
So, you have to understand one thing. Even if you have to invest money, you have to invest it on the sector leader. You have to invest it when you get the sector leader. So, you will see one thing. Who is this person? How much money did he get in IPL?16 crores or 15 crores?13 crores. He took offence. Now tell me one thing.
Half of the people think, why are they giving him 13 crores? Some cricketers take him from the corner of our lane. He comes in 1 lakh. They call us. But do you know why they gave him? Because quality always comes at a price.
And this is the same thing in the share market. When I bought Nestle around 6000 years ago, my friends used to say how expensive it is. Today Nestle is 3 times more expensive than Nestle. Even today they keep saying the same thing.
You will always get quality at a higher price. So, if you keep thinking when Marti will be cheap when MRF will be cheap, people have gone through a lot of pain. But it is not cheap.
Whenever you get volatility and momentum in the market, you start investing on a SIP basis. So, coming to this thing, always invest on leaders. And who is this finally? Prof. Erath. After seeing this, everyone thinks that he invests in trade or stays on Netflix all day. Let me tell you, he is Prof. Erath from Money Heist. What does he always have?9.9 billion. Do you also invest in trade or just watch this? He always has a plan.
So, in investment, you should always have a plan. Everyone has an entry plan. Exit is very close to the gum. Prof. has a plan for everything. If you lock him in a gutter, he has a plan there also. If you lock him in an ambulance, he has a third plan there. If he dies in Tokyo, he has a fourth plan there. So, it is very important that you have a plan. So, now I am going to give you a mantra.
Everyone is ready? Yes, or no? If you keep three things in mind, your investment will be successful. Only three things. And you will find this everywhere on Google. I am not promoting any software, nothing. First thing you see, if a company’s pledge is increasing, especially above 10%, then you will be alert in that company.
If the pledge is increasing above 10%, then you will be alert and try to get out of tithe reason is, you understand this thing logically. A company’s promoter usually increases his pledge when he is not getting a loan. And not giving a loan means there must be some reason why heist not getting its, when the pledge is going up, what do you have to do?
Do you have to enter or exit? Exit. Very good. The second thing is when the promoter is selling his shares. So, when the promoter is selling, does it mean that his confidence is high or low? Low. So, when you see that a lot of promoters are selling quarter to quarter, then you will get rid of that thing.
And the third thing, how many people have read that book, Amir Papa, Amir Gareeb Papa? Yes.Everyone has read it. Yes. Very good. You will get a Nobel Prize. Let me tell you that Rich Dad Poor Dad, do you know the most interesting thing about it? His name is Robert Kiyosaki. He has told the whole world how Rich Dad Poor Dad was made. His company itself went bankrupt. But his lessons are very good.
He always says one thing, what should be more with us? Success. And what should be less? Happiness. So, if no one knows how to see the balance sheet, if you don’t know how to see anything, you go and open the books of those companies. If you see that the debt is increasing year on year, year on year, and you are not earning.
I know there are multiple variables. So, you will try to get out of that company. What are the three reasons? What was your first? Pledge. Second? Promoter Holding. Promoter Holding. And third? Assets. Assets should be more. If you keep these three things, it will be very helpful for you. And finally, I will give a mantra for this thing.
If you don’t know anything, let’s take an example, Sub hashish Bhai taught everyone trading, still, I always say, with due respect to everyone over here, everyone can become a trader, everyone can become an investor. But, I feel everyone should keep a deadline on themselves. Especially in a place like India, where we have responsibilities.
You have to get married, you have kids, you have a family. So, keep a big deadline on yourself.4 to 5 years I am going to give, that is going to help you out. You have to understand one thing, if you keep this deadline on yourself and reach it, it’s no harm. If you don’t become a trader, you will become an investor.
Many people say, we will only become a trader, we will become a trader, but I always say, every person playing in the streets, Sachin Tendulkar, can’t become a trader. So, you have to understand this thing, there is no harm. So, if this is the situation, what should you do? From today, I can give you a guarantee, you are going to be 95% of the investors and traders.
95%From today, every month, in your index fund, according to your income, you start putting 10% of your income. I can give you a guarantee. I am giving a guarantee. If you don’t get it after 20 years, come and tell media mean, I won’t be able to do anything. But, I am giving a guarantee. I am giving a guarantee. Because we have statistically seen, we have done everything.
Your CAGR, that is going to beat 95% of the poor people. Because, on the basis of 15-16%, our economy will grow, no matter what we do. I have so much faith in India. So, if you don’t understand anything, if you don’t understand anything, then you will invest in ETFs or index funds.