Investment Lessons! Back To Basics

In equity markets, the most important thing is the buying price. Buying cheap or at lower cost price may not just give higher returns, but also provide with higher margin of safety. Easier said than Done Lower the price you pay or lower the cost price, higher will be the returns. Apart from higher returns, there is also an increased level of margin of safety when the cost price is lower. While all of this may sound very simple, when it comes to implementing it, most of the investors tend to fail at doing so.  Buying when the cost price is low or when the market valuation is cheap is the most challenging task. Valuations tend to be cheap when there is pessimism in the market. Take any correction in the past—be it the market crash during the global financial crisis, correction post demonetisation or the most recent one following the outbreak of the pandemic—the general...