A lot of my friends are interested in the stock market but their major huddle is that they don’t know how the stock market works or find it a bit too complicated. I don’t blame them.Most of the online resources available make use of terms like stocks, bonds, derivatives, mutual funds etc, which can be quite daunting. So I am going to try explaining how to invest in the stock market in the form of this short story.
Once upon a time there were two brothers, George and Bush. Both the brothers had a deep desire for treasure. The brothers worked hard by selling tea. Since they had a simple lifestyle and a good amount of customers, they noticed that they had started making some cash to spare.
The brothers decided to use this extra cash to buy another gas stove and some more vessels, so that they could make tea faster and serve more customers. Watching the popularity of the two brothers, a few more people decided to open tea stalls as well. And soon in no time there was a line of tea stalls serving tea to customers.
The brothers were not deterred by their new competition, for they were in the tea business for a long time and they were dedicated to serve their customers well.
While all of this conspired on Earth, the Gods had a wager of their own. Each one had their own favorite and started betting on who would be the most prosperous among the tea sellers.
Zeus being the God of Thunder, had chose the Tea stall that had used his symbol, which is a bird on their banners. Ares on the other hand chose the Tea sellers who were the most rowdiest of the lot. Well he being the God of War and all, that made perfect sense. But Athena, was the wisest of them, for she didn’t choose on the basis of symbols and personal emotions. She had been watching George and Bush for a long time, she knew they were intelligent and were creative too. So she decided to put her bet on the brothers stall.
So these three Gods chose their champions and decided that whichever stall grew in prosperity would give them power while the ones that went in loss would make them weak. It was a risky bet for the Gods but power was what they wanted. Athena being the wisest, had a twinkle in her eye. It was time for a new ruler of Olympus and Zeus had been King for far too long.
On Earth, it so happened that while George and Bush had started getting more competition, customers noticed that, their stall prepared tea quite fast compared to the others because they had more stoves and more experience. Due to this, they started making more profit.
Now the brothers decided to use this extra money to buy some new attractive crystal glasses that would make their customers feel special. Although this did take a toll on their profits, it turned out beneficial for them. More and more people started coming to their shop, and soon they decided to buy a couple of tables and chairs too. The brothers also decided to add new flavors to their tea, which attracted people from far and wide.
People started saying things like the flavors and the crystals had magical properties and cured illnesses. This in turn attracted even more people. The other stalls couldn’t survive against the brothers and they soon had to vacate due to lack of business. As the brothers got prosperous, Athena started becoming more powerful, while Zeus and Ares, soon started losing their power. By the time they realized what they had got themselves into, it was too late. Athena had become so rich with power that she used her strength to overthrow Zeus and Ares and had become the New Ruler of Olympus
Now in this story, the tea stalls represent different companies. George and Bush, had good experience and strong fundamentals, so their value or stock price kept on increasing whereas the other stalls due to lack of experience and bad fundamentals kept on losing out on opportunities, their stock price decreased and eventually they had to shut down.
The Gods are the investors. Zeus invested on the basis of symbols without thinking whereas Ares invested on the basis of his emotions. Athena is like the smart investor who did her research on the brothers, checked their background, checked if they had any bad qualities aka debts, loans, poor product quality etc.
Remember how I said Athena had been watching the brothers since a long time, well thanks to her power and strength she decided to give the humans a gift of her wisdom. She gave an ancient weapon if harnessed well can help any human choose a good company or stock. I am adding the link to this weapon here – Blade of Olympus. Use this Weapon to choose the right company and excel at investing.