Common Sense Investing by Pankaj Singhal

In this video we have with us Mr. Vivek Bajaj, co-founder, StockEdge, Elearnmarkets, in a conversation with Mr. Pankaj Singhal, who will be discussing the basics and the power of common sense investing and trading in the stock market.

First, Mr. Singhal will talk about the foundational events which took place in his life and his career, which led him to becoming a trader, and then an investor on a full-time basis.

Mr. Singhal will then discuss the reasons behind why he chose to go ahead with full-time investing in stock market and how he practices it after leaving his job. Next, he will give us a good approach towards investing or trading on a part-time basis, with the help of the right kind of knowledge and common sense.

He will discuss how we can find some great sectors in our own environment, through which we can invest in the share market with ease.

With some practical examples, Mr. Bajaj and Mr. Singhal will discuss how we can pick up elements from our own environment to choose the investing avenues we are comfortable with, and how retail investors can avoid the traps which the companies’ problems can create.

Mr. Singhal, with these examples, will lay down a simple process through which we can identify the right companies to invest in by doing efficient, but not cumbersome, research. We will also discuss the right kind of mindset we should have while investing and trading in the market, and the right kind of steps we need to take to ensure that this fall doesn’t affect the value of our portfolio in the future.

We will also discuss if the buy-and-hold strategy will work if we have to create a dynamically-changing portfolio, and the criteria we should follow to identify growth potential in a company.

Next, we will discuss about the amount of stocks one can comfortably track and invest in, for their portfolio, if we decide to actively trade and invest in them. We will also discuss some drawbacks of investing in mutual funds and the importance of our own research while building our portfolio.

Next, Mr. Singhal will pick up a case study to show how his basics of common-sense investing in share market worked for him. He will do so with the FMCG sector, considering food to be a basic, common-sensical approach to picking up the most basic elements for our stock market investment.