Tuesday, September 30, 2014

Our Attitude decides our return

Our attitude decides our return. Stock market is not meant for everyone, anyone who is engaged with stocks will not make money.  People with a special attitude or those focused on building the specific attitude are likely to create wealth investing in stocks. If you do not have or can not develop the right behavior, do not invest in the markets. Those who are looking for pure returns on their invested money, like watching movements every day or what returns came about etc. are lilely to be losing money.

Will Rogers rightly say that "I am more concerned about the return of my money than the return on my money."

Its not mandatory that every one has to invest in stocks, its actually antithesis for people who are obsessed with the markets. Markets are not for everyone, understand if markets suit you...

What is the right attitude? Its Long term, which is now a cliched and over abused term. Second is margin of safety to ensure your down side is limited. This means very few investment opportunities per year and invest regularly. This seems to be contradictory: Investing regularly is time diversification. If nothing else, you may be able to buy cheaper and be rewarded better.

If you lose patience or attitude over a very long term, you can lose out on the gains. The best companies are quoting at huge valuation and may go into stock price hibernation for years at stretch. In a market frenzy like today, there is limited or no margin of safety.

Focus on building the right attitude and if the markets suit your personality and genes, stay on to be rewarded. Or move on to other opportunities.

For details on our portfolio, email ram@learnivest.in