How Do You Decide to Pick the Best Stocks in Share Market ?

I will give you simple example of how different investors think and approach stock market investments: 

When Indian government announced it’s ambitious goal of achieving “All-Electric Vehicles” by 2030. This news was perceived in a different way by investors.

• Retail investors: Retail investors considered this to be a golden opportunity to buy stocks of electric vehicle manufacturing companies like Tata, Mahindra, Maruti Suzuki etc.
• Experienced investors: They went one step ahead and were looking for investments in the companies which were in the business of making batteries. Experienced investors knew that without batteries these electric vehicles would be just a piece of metal. So they were bullish on battery manufacturing companies.
• Professional investors: These investors search for businesses with high profit margins and in this case they went another step ahead by investing in the companies which supply raw materials to battery manufacturers. So they invested in the companies supplying raw materials like Lithium, Graphite and Cobalt.

If you compare the returns you will see that professional investors made multi-fold returns compared to retail and experienced ones.

On the basis of above logic, I personally have investments in HEG ltd and Graphite India,

1. Graphite India was listed at Rs 73/share in Jan 2017 and as of today it is at Rs 457/share. This is more than 8 times the return.
2. HEG ltd was listed at around Rs 150/ share in Jan 2017 and as of today it is at Rs 2078/ share. A staggering 15 fold return in such a short span.

Always invest in things which are fundamental to any news, in this case of electric vehicles; raw materials like Lithium, Graphite and Cobalt are fundamental things in order to achieve larger goal of ‘All Electric Vehicles’ by 2030.