-R.Kain
The well-known tale of the monkey contains insightful insights for stock market investors.
When you make poor stock market bets, you will adore the narrative and remember it.
Monkey Story
Once upon a time, a wealthy city dweller visited a village. The people heard him say that he would buy monkeys for ₹ 100 each.
Since there were so many monkeys in the neighbouring forest, the villagers were overjoyed.
The monkeys were captured and delivered to the wealthy man. He paid ₹ 100 for each monkey the villagers gave him, purchasing hundreds of them.
They started to survive by removing monkeys from the forest and selling them to the wealthy man.
The number of simple-to-catch monkeys in the jungle soon began to decrease.
The wealthy man recognises this and offers ₹ 200 for each monkey. The locals were overjoyed.
They returned to the forest, where they set up traps, captured the monkeys, and delivered them to the wealthy man.
The wealthy man declared he would pay ₹ 300 per monkey a few days later.
The locals started scaling trees and taking dangerous risks in order to capture monkeys and deliver them to the wealthy man, who bought them all.
In the forest, there were no longer any monkeys.
One day, the wealthy man declared he wanted to purchase additional monkeys, but this time for ₹ 800 each.
The villagers found it hard to believe. They were scrambling to capture additional monkeys.
The wealthy guy explained that until he returned, his manager would handle all of the business till he could return to the city.
The villagers were upset when he went. They were selling monkeys for quick cash, but the forest was now empty of monkeys.
The wealthy man's manager intervened at this point.
The peasants couldn't turn down his offer.
Pointing out all of the caged monkeys that the wealthy man owned. The people were informed that he would sell the monkeys for ₹ 400 each.
When the wealthy man returns, sell them back to him for ₹ 800 each, the manager instructed.
The villagers were thrilled to pieces. Purchase for ₹ 400 and quickly sell for ₹ 800. They had just discovered the quickest way to multiply their wealth.
The people saved up all of their money and even took out loans.
There were lengthy lines, and in a short period of time, practically all the monkeys had been sold.
Sadly, their joy was short-lived because the manager disappeared the following day and the wealthy man never returned.
In the hopes that the wealthy man would return, many villagers kept the monkeys with them. But as time went on, they lost heart and were forced to release the noisy monkeys back into the bush because it was impossible to feed and care for them.
If the connection wasn't clear enough, this is what occurs when you invest in low-quality companies on the stock market.
There will be a cheap supply that no one wants to purchase. It will suddenly start selling to a few wealthy folks.
Because there are suddenly many buyers and few sellers, the stock price will increase.
The classic example of a lack of supply due to high demand is the monkeys in the forest.
Newspapers and business media frequently cover the stock. These wealthy men would also employ deceptions like mass SMS distribution to entice others to purchase shares in exchange for enormous returns.
They attract novice and inexperienced investors who are looking to quadruple and triple their investment.
Finally, the major players sell the stock back to novice investors at high prices after having purchased it early when no one else was interested.
Similar developments are currently taking place in Ruchi Soya and a few other companies on the stock market!
There won't be any buyers or sellers one day. Those who purchased the stock in the last phases of its climb will lose all of their money.
They plan to keep the shares for a few years in the hopes that the stock price would recover. As a result, the story comes to an end.
The stock market story's lesson is, in a nutshell, to only invest in reputable businesses that are marketing items that consumers like and use.
There is no instant money in the stock market or in life, so don't be greedy.
Gaining wealth requires patience and work. There are also no short cuts.
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