Why equity / fundamental analysis ? The need of equity / fundamental analysis ?

It actually starts with me. As a newbie, I used to be happy in bull days and sad in bear days. I used to buy bad companies in bull market, which I should not be buying. And ignored gems in bear market, which I should not be ignoring.

So my point is in the next bull market you should be able to minimize your mistakes. And in Bear market, you should be able to grab that multi-bagger opportunity.

Investors problem with equity market

1. It is fraud fraud and fraud..

Take example of Manapasand Beverage showing fake sales, which was exposed by 2Point2 Capitals Or 

Yes Bank showing 0.1 % of NPA, which is almost impossible for a bank, whose majority of revenue comes from wholesale lending.

So why investors get into fraud ??

Because they don't do due diligence like they do while buying properties or shirt or phone. 

And to do that in depth research ,one need to understand the language of the business i.e Accounting.

2. They don't understand economics of the business and dynamics of the industry.Hence they ended up buying cyclicals at peak valuation, value traps.

If you are buying NALCO, thinking that it is cheap. Then you need some investing pill. 

In my calming blogs I Will be giving our secret pill for creating wealth (Variant Perception ). Because India today presence us a solid growth opportunity.