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The Porcupine Story
The story goes that it was a particularly harrowing time in porcupine land. The winter was severe and the porcupines were finding survival difficult. They were freezing to death.
That’s when they held a meeting to decide on a course of action. As they got together to discuss their survival strategy, they discovered that just by being in close proximity with each other they were able to feel warmer and protect each other.
Being closeted together meant that their bodies generated heat which helped keep everybody warm. So they found they could survive the cold by just staying together!
But there was a problem.
As they moved closer, they found each other’s quills to be a bother—they poked and hurt.
Feeling the discomfort, some porcupines decided to avoid the pain from the quill pokes and moved away.
And as they ventured out on their own, the cold got them and they died.
Soon better sense prevailed and the porcupines realized it was better to stay together and survive rather than go out on their own and die.
Getting poked by the quills of porcupines that were close to them seemed like a small price to pay for survival.
This story has a great lesson for investors.
1) Investors afraid of market volatility redeem their investment because volatility seems to hurt them. Only if they could tolerate a little volatility their lives would be much better off in due course but their fear gets the better of them and they hurl themselves into a bigger crisis.
2) Another lesson investors can draw from this story is of leaving their Advisors and practicing self advisory or self medication whatever one may like to call it because the small fee that they have dispense seems to hurt them. They eventually venture out on their own and with no Advisor to manage their irrational and emotional behaviour, they too fall prey to greed and fear and lose their way.
Have a Proper Investment Plan
Boris Becker had it all — six grand-slam tennis titles, models hanging off his arm and luxury houses all over the world.
At the height of his career, the German ace had amassed a reported $63 million in prize money and sponsorships, but now the man once known as “Boom Boom” for his ferocious serve has gone from boom boom to bust.
Now 49, Becker was declared bankrupt by a British court, capping a fall-from-grace story that saw the one-time wild child go from Wimbledon champ to walking headline by blowing through money, women and business ventures in retirement.
His lawyer pleaded for more time and “one more chance” to make good on debts he has racked up in retirement.
But the judge said, regretfully, the man she had once watched dominating center court has already had plenty of chances.
“One has the impression of a man with his head in the sand,” Registrar Christine Derrett said.
The above news of Boris Becker, Six times grand slam winner and one of the most successful tennis player, becoming bankrupt sends one of the most powerful message to all the youngsters of today.
“Success is never permanent . Plan well when the sun is shining coz failing to plan is planning to fail. “
Financial management is most crucial lesson one should learn in these uncertain times.
Have a great weekend.