Long Term Investment in Stock Market - All You Need to Know! Learn Stock Market A-Z E6

About this video

• Video Title: Long Term Investment in Stock Market - All You Need to Know! Learn Stock Market A-Z E6
• Channel: marketfeed
• Speakers: (No speaker names provided in the transcript)
• Duration: 00:38:21

Overview

This video provides a comprehensive guide to long-term investment in the stock market, explaining what it is, why it's important, and how to approach it. It covers stock selection through fundamental analysis, understanding stock price drivers, the logistics of buying and holding stocks, and methods for measuring investment returns. The video aims to equip beginners and intermediate investors with the knowledge to confidently invest for the long term.

Key takeaways

• Definition of Long-Term Investment: Holding stocks of companies with good growth potential for an extended period, typically three to 30-50 years, with the goal of capital appreciation and potential dividend income.
• Importance of Long-Term Investment: It's presented as a necessity for wealth creation through capital appreciation and an additional income source via dividends, contrasting it with trading which is viewed as optional.
• Stock Selection Process: Emphasizes using fundamental analysis to identify good companies and technical analysis to determine the optimal time to buy or sell stocks.
• Factors Driving Stock Prices: Explains that stock prices fluctuate due to demand and supply, which are influenced by a company's fundamental performance and overall market sentiment.
• Logistics of Buying and Holding: Details the process of buying stocks in the secondary market, including order matching and the settlement period (T+1 day) for shares to appear in a demat account.
• Measuring Investment Returns: Introduces Compound Annual Growth Rate (CAGR) as the correct method for calculating and comparing investment returns over time, contrasting it with simpler, less informative methods like absolute returns.