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Multibagger on Diwali: In 2009, the share price of Asian Paints was Rs 70, but now it is around Rs 3000. In 2009, the share price of MRF was Rs 1200-1300, which is around Rs 1,30,000 today. In 2009 itself, the share price of Tata's company Trent was less than Rs 30, but now it has reached about Rs 8,000. In this way, there are hundreds of other stocks which have given tremendous returns. Not all multi-bagger stocks can make anyone rich overnight. Every multibagger stock asks for time from you and if you give it time, it can give you very high returns. All the above stocks have also given good returns over time.

Whenever there is talk of investing in the stock market, long-term investment is considered the safest and most profitable. From Warren Buffett to Rakesh Jhunjhunwala, no one became a billionaire just like that. Their only investment perspective was long term and they selected good companies and invested in them.

Today is Diwali and there will be Muhurat trading in the evening. Everyone waits for Muhurat trading on Diwali. Investing on this day is considered a good start to the year. If you invest in this Muhurat trading thinking that you want to keep the money for the long term, then you can also get multi-bagger stocks, which will also become a strong financial base for the future.

Since the opportunity of Muhurat trading comes only once a year, you should understand that you have to invest once and forget about it. The stock you buy will sometimes go up and sometimes fall, but there is no doubt that it will give you huge profits in the long term, provided you have chosen a good company and invested in it. If possible, you should invest after taking advice from your financial advisor, because he will keep advising you from time to time.

Benefits of long-term investing
Reward patience and perseverance: The biggest advantage of long-term investing is that you are not affected by the volatility of the market over time. When the market fluctuates, long-term investors maintain their patience and reap the benefits of their investments only when the time is right.

Effect of compounding: Capital invested over a long period experiences the effect of compounding, which makes your investment amount grow over time. For example, if you invest in the right multi-bagger stocks, huge profits are possible through compounding.

Which stock to invest in?
To buy a good stock, it is necessary to identify fundamentally strong companies. Here are some easy ways-

Revenue and growing profits: Analyze the financials of companies. Stocks with consistent revenue and profit growth are fundamentally strong. For example, look at the company's CAGR over the last 5 years. Keep a minimum 5-year basis for long-term investing.

Debt management: Check the company's debt-to-equity ratio. Companies with less debt reflect greater financial stability and may perform better in an economic crisis.

Return on Equity: Evaluate return ratios such as Return on Equity (ROE) and Profit Margin. Companies with high ROE usually indicate better management and better capital utilization.

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