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Ask your friends, neighbors or relatives about stock market investing. Most of them will discourage you by mentioning it as another form of gambling. Many individuals still believe that there is no logic behind the stock price movement. Those who earn big from the stock market are just lucky.
Contrastingly, the interesting fact is that almost all billionaires in the world have crated their fortune through the stock market, either directly or indirectly. Directly refers to the direct stock investing and indirectly refers to listing their companies to the stock market. One of the world’s richest people, investor and philanthropist Warren Buffett created his fortune from direct stock investing. Other well-known billionaires including Bill Gates, Mark Zuckerberg and Larry Page made their fortune by listing their companies on the stock market. As like India, you will find many billionaires investors such as Rakesh Jhunjhuwala, Radhakishan Dmani and Vijy Kedia, who earned their entire wealth from direct stock investing.
My question is, if stock market investing is another form of gambling then how have these billionaire created their fortune from the stock market? You may earn once or twice from traditional gambling, but it is not possible to become a billionaire by gambling. Can you say they were just lucky? Luck can favor once, twice or even thrice, the successful billionaires investors are consistently earning from the stock market over several decades. A gambler cannot make billions consistently. Luck is not enough to create a billionaire. So, there must be a different story.
On the other hand, many retail investors lose their hand earned money in the stock market. Retail investors refer to those who have a full time job or a separate source of income and invest a portion of their savings into the stock market. Retail investors lose their hard earning money in the stock market because lack of knowledge while a small group of billionaire investors create their fortune.
