Sonali Bendre diagnosed with metastatic cancer
An investor believes that his
acquaintances, relatives, friends, colleagues, neighbours etc may have better information than him, and that leads him to follow them.
Such choices may be justified by short-term performance, but often lead to bubbles and crashes in the long run.
Small investors keep watching other participants for confirmation, and then end up entering when the markets are over heated and poised for correction.
Investors should use:
Banks for short term cash management.
Insurance to cover the risks.
Gold to hedge the currency (i.e. Rupee).
Real Estate for consumption (Residence) or regular income (rent).
Capital Market to create long term wealth.
Unfortunately, it happens otherwise.
People tend to use:
Banks & Insurance for investments,
Gold (jewellery) for consumption ,
Real Estate for long term wealth creation, &
Capital Market for speculation and short term gain.
Needless to say, why they fail to create wealth!
Goal Based Investing is indeed the way forward.
Its more about your objectives to achieve, age, risk profile & time.
Investing in traditional asset class will affect your objectives. The example is shown in the image.
This is an another example of investments of similar nature.
For an investor, the right instrument makes a great difference over other.
We all invest for some objective, but are the investment baskets the right avenue to invest?
Will it yield the required corpus in a particular time frame?
The image is based on true & live story of the happenings around.
I pray this should not be your case.
Educate yourself while Investing.
Keep right approach while Investing & stick to it.
Don’t run behind Money.
Invest & Have Patience.
Patience indeed does wonders.
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.
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.