https://youtu.be/zoXmby2yclM

Transcript 

Darshan Doshi (00:09)

Welcome to DASAR. My name is Darshan Doshi and we have an awesome podcast guest with me, my close friend Rohan Koshy. He's a part of the New Horizon Fund. He's been in the investment world for almost a decade now. And in this podcast, he covers right from the basics of what is the stock market, what is the art of picking stocks? How do you ideate how do you generate ideas for investing in the stock market? When does it make sense to invest in the stock market? How do you approach investing to the stock market? Should you invest in direct stocks? If so, how do you evaluate? He even goes into the depths of how do you research for stocks. How do you value these stocks? What are the popular methods? And then how does psychology or how does long term thinking affect your stock market returns? So we've covered a whole lot of things. Rohan has been amazing in this podcast. I hope you enjoy this. And if you learn from it, be sure to drop us a note or hit reply or share it with your friends. The more people who become educated with personal finance and investing, the better it is as a society. So go ahead, enjoy this podcast.

Darshan Doshi (01:31)

So I had a crystal ball which told me today the market is going to crash significantly. And so I brought in all my eight senses to invite Rohan for this session. Of course. I'm just kidding. Rohan, thanks a lot for joining and taking this session. Today we saw 3% market correction roughly in the Indian stock market if you've been following and there are two lines of thought, if the market is dropping by 3% means people are selling. But that also means if you're someone who has been a good investor, you could potentially look at this as an opportunity to build your portfolio and invest in the long term.

Rohan Koshy (02:19)

So I'm just going to get started. One thing that people do when they start the investing journey is essentially, there's this guy, right? And the idea is that a lot of people think that you can do this on your own. And it is true to a certain extent. But there are certain things that people tend to forget about how difficult it is, and they should keep that in mind as they start their investing journey. I know this sounds very basic, but a lot of people forget this part. And for those of you who are either building a business or have built a business, the stock market is about access to capital, right? That's the main function. And that's the primary market. That's the IPO market. And what we do trading and making money is not a function of the market. It's not what the market is designed for. That's just an outcome. But what it does help is price discovery. Price discovery is essentially every business is valued at a particular level, and that value gets determined over a period of time. And that price discovery informs how capital markets function. I'll touch upon an example later where this kind of comes, you kind of figure out why this is the case.

Rohan Koshy (03:46)

Right. So why does it generate wealth? It's not there to generate wealth, but it does generate wealth. It's primarily because you're betting on people. So all the people who are here at 08:00 in the morning or 08:00 in the night are essentially very interested. They are doing their own things, but they are essentially working hard and being innovative. And the market allows you to benefit from that, provided you put in some effort of your own. It's not gambling. It is definitely very far away from that. There is one element to why you're investing in the market, because you have an objective. There's no other reason for it. The objectives are essentially very simple. You want to get to a level of wealth which makes you comfortable, allows you to do something which depends on everybody. And that part is really for you to figure out what it is. But essentially it falls into four or five things. I want to make enough money to take care of my