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How I Made Rs.60,000 in a Single Day Trading Stocks

And what you can learn from Warren Buffett.

Hello Moneymint fans,

Welcome to all the new members who've joined us this week! Thank you for being a part of Moneymint.

Let's talk about the stock market today.

I made Rs.60,000 in just one day. I bought stocks when the market was going down and sold them two days later. I'm an experienced investor, so even if the trade didn't go well, I could have kept the stocks without worrying. The risk I took in this trade was very small compared to my whole portfolio.

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How I Made Rs.60,000 in a Single Day Trading Stocks

I don’t trade every day, and I don’t trade based on guesses. I recommend beginners avoid trading stocks. Start with investing, and once you make some money, then you can think about trading.

Let me share how I made Rs.60,000 in one day by buying stocks when everyone else was selling them.

It was June 4th, and the market crashed because of the election day results.

While everyone was busy selling stocks, I bought them at their lowest point. I purchased government-owned stocks at a 25% discount. Yes, I mean a discount. When something is on sale, you buy it, right? But when the same thing happens in the stock market, people avoid buying stocks. That's because of our herd mentality.

We need to think outside the box. The stocks I bought were not random; I took a calculated risk, and it worked in my favor. I can't teach you everything I know about the stock market because I've been in it for the last 15 years.

Even today, I make only 2-3 trades a month, despite my experience. This is not my full-time job, so I don't actively trade. I only do this when I'm 99% sure of the outcome.

But I can share insights from the greatest investor of all time: Warren Buffet.

Let's dive into the world of one of the most successful investors of all time – Warren Buffett. Known as the "Oracle of Omaha," Buffett's investment strategies, ideas, and philosophies have inspired countless individuals and transformed the financial landscape. Let's explore how he makes money, incorporating his ideas, and timeless wisdom.

The Buffett Way: Investing with Simplicity and Patience

Warren Buffett's approach to investing is rooted in simplicity, patience, and a deep understanding of the businesses he invests in. Here are some key elements of his philosophy:

1. Value Investing

Buffett is a proponent of value investing, a strategy that involves buying undervalued stocks with strong fundamentals and holding them for the long term. He believes in identifying companies with a "moat" – a sustainable competitive advantage that protects them from competitors.

"Price is what you pay. Value is what you get."

2. Long-Term Focus

Buffett's investment horizon is measured in decades, not months or years. He emphasizes the importance of patience and the ability to withstand short-term market fluctuations.

"Our favorite holding period is forever."

3. Understanding the Business

Buffett only invests in businesses he understands. He avoids complex industries and sticks to sectors where he can clearly evaluate the company's performance and potential.

"Never invest in a business you cannot understand."

Key Strategies and Principles

1. Buy and Hold

Buffett's strategy involves buying high-quality companies and holding them for the long term. This approach minimizes transaction costs and allows investments to compound over time.

"If you aren't willing to own a stock for ten years, don't even think about owning it for ten minutes."

2. Focus on Quality

Buffett looks for companies with strong management, solid financials, and a clear competitive edge. He prefers companies with consistent earnings and a track record of success.

"It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price."

3. Economic Moats

Buffett seeks companies with a durable competitive advantage, often referred to as an economic moat. This could be in the form of brand reputation, cost advantages, network effects, or proprietary technology.

"The key to investing is not assessing how much an industry is going to affect society, or how much it will grow, but rather determining the competitive advantage of any given company and, above all, the durability of that advantage."

In the next edition of this newsletter, I will share what I learned from Varun Chopra, the founder of The Teaser Company and Homified. But you can listen to the whole conversation here:

Warren Buffett's investment philosophy is built on simplicity, patience, and a deep understanding of the businesses he invests in.

By focusing on value, quality, and long-term growth, he has consistently achieved remarkable success in the world of finance. As you navigate your own investment journey, consider incorporating Buffett's timeless wisdom and principles to build a solid foundation for your financial future.

Tweets of the week

1. Rural India Theme:

2. Waste Management Sector Has Huge Growth opportunity in India:

3. A stock worth a deep dive to better understand the company:

Stay curious, stay invested, and remember: "It's not about timing the market, but time in the market."

Until next time,

Aditya Farrad
Founder, MoneyMint