Recent 5% Monthly Price Surge on LIC Stock

Hello Hive Fam!

I hope your day is going well and that you're having a good time.

I believe that diversification is very important in the investment journey, and there should be multiple aspects to it. What I am trying to say is that you need to diversify the investment in multiple asset classes and also in multiple industries. This helps us to minimise risk and increase the probability of higher profits. For example, if you are investing in stocks, you should not invest all the money in the same industry, but rather diversify. If I talk about myself, I see great potential in the energy sector, so I invest in some stocks in this segment, but I also invest on insurance industry. The insurance industry is not growing much this time, but this helps to keep the portfolio stable.

I also invest in some government companies where growth is slow, and I am aware of this, but it also helps to keep my investment away from higher risk. Its a balancing strategy that we need to follow. Here I am sharing one of the Insurance company stock and it's the biggest insurance company in India, owned by the government. I invested in this company a few years back And still holding all the shares. Today I was checking the price, and I could see some good appreciation on the investment, but I have no plan to sell now because I believe that this stock has the potential to grow. Today the stock growth is good, which might be a temporary situation where the price is up by more than 5% in a month andd for this kind of stocks its good.

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The company name is LIC, which owns the biggest market share in the insurance industry, and no competition is even close. I have seen this situation more or less the same because I've been tracking this stock for the last few years, and this is why I see this company as a good for the long term investment. The company is profitable, and they show a good profit on their annual balance sheet Every Year Which is a consistent performance by government owned company.

Personally, I'm not a fan of investing in the companies owned by the government, but there are a few companies that I still consider because of their good track record and nice performance year on year. This company has increased its portfolio in terms of product offerings in the last few years, as it offers almost every type of plan, including life insurance, health insurance, and term insurance, with a variety of plans to cater to different needs.

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I follow the price charts, but I'm a kind of person who is more interested in reading the balance sheet, and I go through their quarterly results to see how the company is performing. It is a practise that I follow with all the companies that I am invested in because, personally, I believe that fundamentals are a crucial part to go through before we invest, and even after the investment, we should keep on checking it every quarter, to have a clear picture of the company's growth. If I see some decline on their Net margin and revenue for a few Then for me it is a signal that I need to make some changes, which I hardly get through the charts because I'm not really too good at technical analysis.

What are your methods and strategies to analyse stocks?

Thank you!

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