Saturday, May 28, 2022

Time , Patience and Loyalty

 



Time, patience and loyalty are key ingredients in the journey of life.

People who seek pleasure in flirting get afflicted by AIDS or some other strange ailment.

Even in investing, flirting remains a risky proposition.

The human mind sometimes thinks it can beat age old values of patience and loyalty.

It seeks for a new and more profitable path. A path driven by overconfidence and greed.

But time and again, such thinking falls flat on its face and instead of making great returns, one lands up with below average returns.

It is a common occurrence that mutual funds deliver good returns but investors don't.

This is because investors are not loyal to any mutual fund and instead flirt with different funds all along their investing life.

All they succeed in is, staying married during bad times and are missing out the good times.

Just as in life, Patience and Loyalty give the best returns in the journey of investing as well.



Next Portfolio


www.nextportfolioindia.com

Thursday, May 12, 2022

The Garbage Truck Vs Investment

 


The Garbage Truck Story


I read the story of the Garbage Truck and received the best investment lesson of my life. Here is how it goes:-

One day, I hopped into a taxi and took off for the airport. We were driving in the right lane when suddenly, a black car, jumped out of a parking space right in front of us.

My taxi driver slammed the brakes, skidded, and missed the other car by just inches! The driver of the other car whipped his head around and started yelling at us.

My taxi driver just smiled and waved at the guy. I mean, he was really friendly.

So I asked, "Why did you just do that? This guy almost ruined your car and sent us to the hospital!"

This is when my taxi driver taught me what I now call,

'The Law of the Garbage Truck'

He explained, "Many people are like garbage trucks. They run around full of garbage, full of frustration, full of anger, and full of disappointment.

As their garbage piles up, they need a place to dump it and sometimes they'll dump it on you.

NEVER take it personally. Just smile, wave, wish them well, and move on with the routine life.

Don't take their garbage and spread it to other people at work, at home or on the streets.

There is a beautiful investment lesson locked in this piece of advice.

Like garbage trucks, the markets too throw their garbage on us in the form of a volatility, market correction or even a market crash.

But as an one time investor or SIP investor, you need to behave like the taxi driver.

Stay calm, smile and carry on with your investing as though nothing has happened.

There isn't or ever will be a better piece of investment advice than this.

All we need to to do is to change our investing behaviour and lo and behold ; all our financial dreams shall come true.


NEXT PORTFOLIO

www.nextportfolioindia.com




Small is Beautiful

  'Small is Beautiful' applies in investing too There was once a tree at the edge of a forest that had deep roots, a thick trunk and...