How to Invest in Stocks Safely by R Balakrishnan

There are many stock-picking methods one could choose from, but the average investor usually gets in or gets out at wrong times. R Balakrishnan, explains what an investor needs to focus on. He walks participants through the common sense way of investing.

Mr R Balakrishnan is a regular columnist for Moneylife. He has over three decades of experience across banking, credit and capital markets. He was one of the founding team members of CRISIL. He also helped set up Malaysia’s first credit rating agency.

Mr Balakrishnan was head of equity research at DSP Financial Consultants Ltd and CEO & CIO of First India Mutual Fund. Apart from writing for Moneylife regularly, Bala is also part of a group of friends engaged in farming and retailing of vegetables and fruits.


yck reddy says:

good speaks

Anil Aher says:

Don not  blame fundamental as well as  technical analysis.  As individuals we treat then as 2 eyes.  With this we get 3D image of the scrip. Also if 1 eye doesn’t work other still gives idea. If even 1 eye doe snot give clarity why to invest in such scrip.
If we do not know how fundamental works or technical works it is our problem. Both has strength and proven.  Use 1 or both its up to you.  Understand limitation of both and try use it in best possible scenarios.

dd cc says:

how he come to cash accruals ? does anybody know calculation?
or is it possible to share excel sheet he used ?

Ramgopal Vakada says:

Thanks for giving a wonderful speech.

Gurvinder Singh says:

Best video ever seen on stock market

Jovanni Chester says:

Bad english


Thank you very much sir for giving us basic information

Ajit Matthan says:

You need to ensure that there is no static in the background so that viewers/listeners can listen with full concentration. It is highly irritating to listen for 1.5 hours with this noise in the background. I listened for 10 mins only as the Audio/video recording is poor.

Ankur Chawla says:

What books are to be read?

sid smily says:

thanks i gain much knowledge thanks..

Shyam Krishnan says:

ozam…. superb.. one by one word by word…

Georgio Valentino Rayala says:

Loved this video.Thank you.

IndiaRockLovers says:

The other real mystery I don’t understand is how come there are traders, money mangers, hedge fund managers who beat the market trading and speculating without doing fundamental analysis, simply looking at price movements and hedging if fundamental analysis is the only way to make money.

Rajat Rokade says:

Simply the best…

Sanjay Malakar says:

I understood the basic fundamentals to choose stock.

washfi says:


Asheesh Chopra says:

Very good content …thanks ! …but very annoying electronic noise in the background; would be great if you upload a video with clearer audio.

The Truth says:

SEBI had slapped 13 crore penalty on Reliance industry for not disclosing EPS , which again leads to ROE . The last line is of outmost importance on EPS.

IndiaRockLovers says:

The basic thing is you are saying look at the fundamentals and then buy it will give you a good return, but the market doesn’t do so and in the end of the day the market decides the price and the return on shares, so how does fundamental analysis works are you saying that by random trading and price movements the market somehow manages to know about the company and its fundamentals and price is accordingly, or it just moves and trades randomly, if fundamental analysis is correct, can we predict the stock price correctly by fundamental analysis. The market doesn’t seem to do that and traders, speculators and retail investors buy and sell shares according to their gut feeling or according to some news events. In some parallel universe where people are sane and markets are rational I would believe in whatever you said but things doesn’t happen the way you said in this universe, its just random/chaos to me, and it is the way it looks like seeing the price movements and charts.Stock market bubbles prove what I am saying.

Nam chu van says:

LOL like the song ???????

Naveen Gowda says:

His twitter account is awesome.


excellent video,
pl prepare a video on aditya birla nuvo as i trade that stock and it will be really help ful for me to have the study of charts for that script

Amit Kumar Chouksey says:

Towards the end of session , he talked about a movie untouchables. but i couldn’t find any movie with that name which has character like mike milken. does anyone know which movie is that?

George Mathew says:

Its really strange and surprising, Keralites are not exactly known in stock markets, yet one can find quite a lot of them who are on top of the game like Porinju Vlliayth, Geojit George, Balakrishnan, just a few who came to my mind now…usually it is marwaris and gujus associated in stock trading

Djellala Make Money Trading Stocks says:

hi debashis  there is a big debate about investing. he said have you ever seen a trader in forbes. i dont think that this man has any idea about the amount of billions taken as a profit by traders each year. if wall street traders dont make money so who makes the money?  investors are the beggars. they choose a stock and wait 30 years. well if they are right they show off if not they lose all their money. and as he said he will sell 50% less. the list of forbes are made by people who own companies. even one buffet is one of them he owns large stake in some companies. he bought too much in the fifties so he has money. this man is talking to some people who have money so they put them into stocks and wait for 15 years or more.
do they know what the companies will be after 15 years. no  so since no one knows the future even with solid information  so what s the catch of teaching people to read the balance sheet.  see what these mutual managers are doing. they take their profit from the investors money right away right?  then ask the investors to wait 15 years.  why not these managers have the same risk as the investors? there is no safe investment whatsoever. when you buy a stock you will never know if after 15 years will be good or bad.  sometimes investors saw their investment disappear day after day month after month and these managers ask them to wait more until one day everything is gone.  now who will always it is the investors.  do these mutual fund managers lose? no since they cut large portion of the money even before they invest it.

see what happens in the usa in  1929 or 1987  or 2008. well can these managers forecast that. they cant. have they built wealth? 

thats why these people push people to put the investors money into stocks and tell them ok dont worry. we studied the balance sheet. and when the investors lose money what will happen . nothing. because those mutual funds have already get their thick salaries and their percentage plus bonuses. mutual funds dont invest right thats why they are safe. thanks

Upendra Kumar says:

very annoying to watch this otherwise great session .. the constant static noise looks more of a torture …

ProgPalace says:

There is a dirty static in the background that makes it very annoying to watch this video. I can’t believe no one else here has written about it? Could you please remove that and re-upload this video?

Failures says:

little bit lenghty

Aida Zink says:

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jayendra patil says:

How to subscribe money life.
Office address and tele no plz

Leo T says:

Very interesting and educational video

Alex Younger says:

This needs subtitles

Leonard Schofield says:

email me the power point

Rajeev Bhatia says:

just like our vegetable bazaars, there are variety of Snakeskin Oil sellers near the (Indian Stock) Market. All of them screams “My oil is the Best, others are fools”.

Samsul Haque says:

You will find lots of wrong information within in his speech. Ex. No companies is benefited after accruing a company. Thats wrong. What abt Tata Motors> Jaguar .Both doing well.

Steve Hansen says:

@40.55 he says to initially look for an average return on income – ROE of 15% (or 50% pronunciation unclear) over the last 10 yrs of a company, eliminating best and worst years. Time to sell when promoter’s share drops below 30%.

Roli Srivastava says:

Rich experience of RB s visible in this lecture…

Trading Experts IN says:

nice video

prasanthsanka says:

Awesome I am a new user to Stock Market….nice definition not to buy stocks with your dream money for car, education etc…Thanks a Ton to moneylife and you Bala sir.

yash soni says:

Plz upload the PDF of the slides discussed in the video it will be very helpful for understanding thank you so much it’s a humble request

vishal patil says:

very nice

Smita Chattar Jerai says:

i want to know do i start sip by small

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