Learn the general concepts of financial markets and economy. You will see the difference between primary and secondary markets and learn about markets for different products. You will also look at various economic Indicators and their influence on the markets. After completing this course, you will have a much stronger background of financial markets and ready to go to the next stage in the Specialization. This course is designed to help students with very little or no finance background to learn the basics of investments.
8. Matching your investments and knowledge : Go with your gut
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來自 Indian School of Business 的課程
Introduction to Financial Markets
548 個評分
Indian School of Business
548 個評分
課程 1（共 5 門，Specialization Financial Markets and Investment Strategy）
從本節課中
Equity Markets
In this module you will be introduced to equity markets and trading in equity markets.
與講師見面
Vaidya NathanLecturer
Finance
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>> Learning Outcomes.
After watching this video, you will understand the investment styles of
legendary investors such as Warren Buffet and Peter Lynch.
You'll also be able to understand how to invest according to your own strengths.
[INAUDIBLE] knowledge with so many stocks out there,
what should you as an investor buy?
Now you could spend thousands of hours reading up all the newspapers
in the world, all the web sites, all the financial blogs,
all the discussion boards and newsletters out there.
And there are a lot of them that seemingly cover just about
every single one of the tens of thousands of stocks on the NYSE, AMEX and
NASDAQ, but I can assure you that you're going to learn precious little and
the only thing that's going to go up is your headache quotient.
So I would suggest for people who,
especially are beginning to start trading and investing.
And if you're learning to invest through this Coursera course,
I would typically suggest to keep it or to follow what is called as a KISS approach.
Keep it smart and simple and I think that's the best way to start.
So you should basically be asking yourself, what field am I an expert in?
Am I a doctor?
If let's say, you are a doctor, if so you should be asking,
what's the new drug or the equipment maker all the pharmaceutical company?
That is essentially extremely exciting and looks promising by your teacher.
And so do you know what books or education services are product of
education softwares that your school is buying or you call this buying?
If you will go to a grocery store, for instance, you see people
suddenly asking for a new product that you can't seem to keep on the shelves.
If you're a parent, are your kids constantly asking for
a certain brand of shoes, clothes, games or gadgets?
So, investing in what you know base on how much you know
can provide a good return and a high-level of comfort.
I will share with you a couple of legendary investors, the first one and
their experiences with investing.
The first one is Warren Buffet.
Warren Buffet amassed his fortune without using a very wide variety of
exotic strategies.
He is basically what you call as a classic buy and hold investor who studies
companies and determines their full values based on the products they make and
the products they sell and looks at the companies profitability,
management quality and predictions of the future growth and sustainability.
Buffet never acts on rumors or pure market price indicators and
that's a very good strategy to follow.
And surprisingly for someone recognized as one of the preeminent
investment gurus on our planet, he invests really really long-term.
The other investor whom you want to look up to, which all the investment community
looks up to is somebody whom I've met and
have had a chat in person this legendary investor called Peter Lynch.
So Peter Lynch is another globally respected investment genius's,
if you would like.
He embodies a solid, but not really exotic investment strategy.
It's quite a simple strategy, if you want to determine that way.
So, his story is that after graduating from Boston school way back in 1965.
Lynch was hired, as an intern at the company that came to be forever
linked with his name Fidelity Investments.
This was mostly, because he caddied for
Fidelity's president at a local country club.
He went from such humble backgrounds and such humble beginnings.
He began financial career.
Among his many accolades, Lynch is noted for a very important and
simple theory, which is that invest in what you know.
In one of his books and I can't remember which one,
because he's written quite a few, might have written seven or eight of them.
But in one of his books, he essentially talks about
spending every Saturday with his daughters when he would
inevitably ask them or maybe the daughters asked them.
Daddy, take us to Gap, so that we can buy some clothes.
So reluctantly, Mr. Lynch would every Saturday give
his daughters hundre dollars to shop and sat out in the mall just waiting.
So after a few weekends of this routine, his eyes suddenly lit up.
He noticed that all the teens are dragging their parents to the Gap store and
he sat outside, and counted the number of people going through the checkout lines.
After an observing and guessing at the average of what's spent,
he had up a ready or decent estimate or
maybe a rough estimate of how much the store was making.
He started liking the GAP store and inside of the company and
had his stuff resource the company the following Monday.
So it was in his portfolio and became one of his best buys ever
returning more than 1000%, that's ten times.
I turned it over for 1,000 persons during the 1980s.
So investing in what you know is a very good strategy and
it's not just an excellent starting strategy, an excellent starting point,
but it can also be a very good enduring strategy rather than trying to become
an expert on really complex investments strategy's over night and
trying to expand your local knowledge.
You might want to use your personal life and work experience,
your industrial experience to choose securities of companies and
industries you're really familiar with.
Think about your goal as building a portfolio of non-losers,
as opposed to a group of winners.
If you combine non-losers with investing in companies and
securities that you know, it often leads you to undervalued stocks and
really true bargains that maximize your investment dollars and
we also want to find one or more of those ten baggers.
Award famous linked messages called, as I would like to call it.
I mean, those baseball fans, you know that in baseball,
bags is a popular term for the bases.
Finding a ten-bagger, which is basically hitting two home runs and a double.
Means that you found a stock, a ten-bagger, basically,
means that you found a stock that returned ten times of your original purchase price,
which is what Lynch did with Gap.
He got more than ten times return with Gap store way back in the 1980s.
So I mean, even if you are not so successful, but
if you find a group of two or four baggers,
that should make your portfolio extremely happy.
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