Smart Observation Can Make You Rich

Every first time investor has some questions like when and where to invest, how much and in which shares or mutual funds, etc. It makes complete sense if you have had these questions yourself.

Let me narrate a story about one guy, whom we shall address as Adam.

Adam decides to invest a sum total of ₹ 10,000 in the equity market. However, he has the same bunch of questions just like every other first time investor who wishes to invest his money.

Now Adam has the spirit to solve every question of life (except the exam question paper!). Thus, he decides to go to a risk advisor and asks him those questions. The risk advisor tells him “I can give you the answers and advise you. But you have to pay me my fee.”

His fee was around ₹ 6000 which puts Adam in a dilemma. “If I give him 6000₹ then I will be left with only ₹ 4000 with me”. Adam now decides to find all the answers by himself.

Want to know what he does?

He becomes a successful investor with mere observation. I’ll tell you how.

His first step: keeping a check on the business news to get a fair basic idea about the shares and global index. Then, he develops a habit within his daily routine of analysing which products he uses on a daily basis.

The first thing he does every morning is: brushing his teeth. He notices the brand of the company producing the toothpaste. While taking his breakfast, he jots down a list of all the ingredients.

Next, while taking a bath, he notes down the brand and manufacturer’s name for every single product he uses: the soap, the shampoo, etc. He then goes to his room and while getting ready for the office, he observes his entire wardrobe and notes down the names of the clothing brands.

While putting in the keys to his bike, he writes down the name of the motorbike company. He finally reaches his office and starts using the internet, his landline phones and mobiles, etc. He jots down the network name.

Then he starts engaging in his work, gets print-outs from his boss, uses his notebook for writing his orders. After the working hours, Adam goes to a department store to buy some necessary items like a mosquito killer, washroom freshener, room freshener, detergent surf amongst other essentials.

After the entire busy day, Adam just opens his diary and sees which products he has used throughout the day along with the names of the companies all those products belong to. From the moment he brushes his teeth in the morning to his departmental store visit, he now has a list of many companies' names.

He notices that they are all listed on the stock market!

Brush and paste: Colgate, jam: HUL, ketchup: HUL, soap: HUL, bucket in the washroom: Neelkamal, towel: Trident , clothes: Raymonds, bike- Eicher motors, petrol: BPCL, tyres: Ceat, internet network: Bharti airtel & JIO, printing paper: JK Paper, pen and notebook: ITC, departmental store: D-Mart, Mosquito killer: Godrej consumer, Surf: HUL, etc.

With the help of mere observation for just one day, Adam got many good companies’ names for his investment purposes without paying a single penny to the risk advisor!

Thus, only a toothbrush can give you an investment idea. Even a bathroom bucket and a washroom freshener can give a good investment idea!