Dear Friends,

Is it fair to blame the stock market after investing in a company—without knowing anything substantial about it—only to subsequently suffer losses or lose your entire investment?

This is precisely the mistake that the majority of investors make...
What business does the company you are investing in actually conduct? You don't know.
What specific products or services does the company offer? You don't know.
From which sources does the company derive the bulk of its revenue? You don't know.

Who are the company's customers? You don't know.
To which specific industry does the company belong? You don't know.
What are the major risks the company faces in its operations? You don't know.
In what ways is this company superior to its competitors? You don't know.
Can new competitors easily enter this industry? You don't know.

Regardless of how many new competitors emerge, will customers continue to choose this company? You don't know.
Who are the key members of the company's management team? You don't know.
What is the state of the company's financial statements? You don't know.
What are the company's profit and revenue growth rates? You don't know.

Is the company's share price currently trading below or above its intrinsic value? You don't know.

What is your specific rationale for purchasing this stock at its current price? You don't know.
Who are the regulatory bodies governing this industry? You don't know.
What is the potential impact of these regulators on the industry? You don't know.
What does the future hold for the company's growth prospects? You don't know.

Does the company have any plans for business expansion? You don't know.
Is the company currently on a genuine growth trajectory? You don't know.
What information is contained within the company's annual report? You don't know.
You are completely unaware of any of the points mentioned above; yet, simply because you have invested, you remain absolutely convinced of just one thing: that this stock will inevitably turn into a "multibagger" in the future.

And if that stock—in which you invested blindly, knowing nothing—fails to become a multibagger or ends up causing you financial losses, then, in your mind, the stock market is 100% to blame. You are not the cause...

Isn't that right?
Now, imagine what I am about to describe.
Suppose you possess ₹1,000,000 in cash. You enter a bustling market filled with various shops—a place housing over 6,000 establishments engaged in diverse trades.
Without a moment's hesitation, you select 10 of these shops and hand over ₹100,000 to the individuals running each one, telling them, "Use this money to conduct your business."
(In other words, you effectively buy out the existing investors by paying them off, thereby becoming the new investor yourself.
Upon receiving the money you provided, they relinquish their ownership rights to you.)
The reality is that you have given the money with a simple understanding: "If you succeed in business, return my capital; if you fail, you need not return it."

Now, fast forward a few years. The market itself may still be standing right where it was; but will the specific shop—or the person running it—into which you blindly invested still be there? Or will they be gone? Will they return the money you invested? Will they fail to return it? Or will they return it manifold? These are the questions that investors—and only investors—must carefully consider before committing their capital.

A friend might say:
"The price is rising daily."
"The price is falling."
"It is a major corporation."
"It is listed on a specific index."
"Institutional investors are buying."
"There is an excess of liquidity."

Citing these and various other reasons—and investing without conducting any proper, rigorous analysis—only to subsequently blame the stock market for the outcome, is fundamentally wrong.

This post is intended solely for educational purposes.