Loss Aversion Biases

I find that some people are married longer to their stocks than their spouses. 😂😅😛

This is nothing but loss aversion bias.

People generally are reluctant to book their losses and keep holding the stocks in the hope to recover their cost price. And worse, few even average out the falling knives.

For an Investor, it is very important to accept the mistakes, learn from them and to move on.

It is far better to pay premium for excellence than to enjoy discount for average.

Kaustubh Deole

Our Behaviour

Our Behaviour towards Life, makes a lot of difference while Investing.

Investing Today & Investing Later are different scenarios.

Time Value of Money never stops for any one.

Change your behaviour early.

Untill then, enjoy with today’s image.

Kaustubh Deole

Instant Gratification (तुरंत संतुष्टि)

Instant gratification is one of the most brutal enemy of an investor.

People always look for instant solutions to their problems. Everything cannot happen instantly like 2 minute Maggie Noodles.

Let’s take an example of Indian economy, the dynamics are entirely different. Imagine, a fully loaded 60 wagons goods train. Now to start and take this train to 50 kmph would take plenty of time. Similarly the case would be the same while stopping it.

Our economy is also like this locomotive. Any decision taken will take 2-8 quarters to play out. So one needs to wait patiently.

Too much of data, information these days is proving harmful to investor’s wealth and health.

Instead focus on what matters and have Faith and Patienceश्रद्धा एवं सबुरी.

Kaustubh Deole

Fixed Deposit = MASK

Friends

Last week i visited a prospective client through a reference. He shared his idea of saving & preserving money. He shared his details & my goodness; he is sitting on worth 30 lacs in Fixed Deposit!

The emotion of preserving money is great but the question is is it increasing as compared to inflation?

Obviously not.

People still think FD as a superior option to preserve money. I would rather say, the person who has invested in FD is an utter loser.

FD should ideally contain only the amount which can be used in emergency situation.

Kaustubh Deole