I was chatting with a young investor, who had made a couple of investments in the past few years. Since the equity markets had turned volatile, he was anxious to understand if he had made the right choices. He was actually stressing that he should not get even one of his investment bets wrong.
Especially in the Equity markets, one can never hope to make investments entirely right, without ever getting it wrong every now and then. If one is determined not to make a loss, then the choice would lead him to pick up suboptimal investments that have already run their course and therefore isn’t the best choice, for the best return.
So, the essential rule to making great returns in stock markets is to be open to the fact that some of the investments may not turn out ok. It is ok as long as the ones that you get right make up for the loss of returns of the other ones. On the other hand, the learnings one makes from such failures, makes you cleverer.
In 2015, actor, producer and MC, Common won a Golden Globe for Best Original Song in a Motion Picture (with John Legend), received an Oscar nomination for the same song, played the role of James Bevel in the powerful movie Selma, narrated two Microsoft Superbowl commercials and appeared on the Today Show. For many, Common had exploded on the scene, but this explosion has been on a long-term commitment to discipline, patience, hard work, consistency, strategy and friendship.
As they say, I am an instant success, but it is 20 years in the making…
Most times we are so focused on the end result that we forget the journey it takes to get there.
Warren Buffett started investing at age 11 and he becomes a global guru only 20 years ago. That happened at his age of around 66 years. He was an instant success, 55 years in the making...
Think on your own investment decision from that perspective. Is your investment strategy like buying a lottery ticket or is it aimed at creating long term wealth? Both require a different strategy. Do not let the glitter of success hide the efforts that is necessary to make it happen.
The instant success playing out now is from the effort that started out 20 years ago.