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Showing posts from June, 2023

Alpha

In the world of stock market investing, everyone aspires to achieve alpha—a measure of returns that surpasses the performance of the market index. While some might dismiss the significance of a few percentage points, alpha plays a pivotal role in long-term wealth generation. Consider this: a 12% return over a period of 20 years can transform an initial investment of 10 lakhs into 1.09 crores, whereas a 15% return can yield an astounding 1.97 crores . So, what are the key factors that contribute to generating alpha? Network : Establishing a strong investment community can be instrumental in generating alpha. Seasoned investors often rely on their networks to discuss stock ideas, share knowledge, and exchange valuable insights. Moreover, cultivating relationships with company management can provide a deeper understanding of the business, potentially leading to investment opportunities that others might overlook. Algorithmic Trading : Harnessing the power of machines through algorithmic t...