1. Pretend investors believe that financial pornography is true so they watch TV watch CNBC, Bloomberg, NDTV, ET Now, and act upon it.
Real investors watch CNBC or NDTV to watch the anchors for pure entertainment.😃
2. Pretend investors like action and keep churning their portfolio on the basis of ‘Expert’ opinion in TV, News papers, unscrupulous advisors etc. Most people love to be brokers of pretend investors.
Real investors review their portfolio every year or so and make changes if necessary taking into consideration their own personal lives.
3. Pretend investors fall for instant gratification. They want everything now, they are fascinated by Maggie Noodles, Just 2 Minutes Ready to consume.
Real investors understand law of the farm. You cannot sow something today and reap tomorrow. A seed has to go through many seasons before it blossoms into fully grown tree. Real investors love Biryani which takes time to prepare. Rome was not built in a day, was it???
4. Pretend investors talk too much. I am long this, short that. Bullish on Consumer Staples, bearish on IT etc. They want to impress somebody.
Real investors know simple is beautiful and effective. They understand the difference between global economy and personal economy and what matters more.
5. Pretend investors keep on complaining endlessly about market volatility, government policy and geopolitical developments.
Real investors already understand volatility is an inherent characteristic of capital market. They embrace volatility and benefit from it.
6. Pretend investors focus on everything except their own behaviour and in the process suffer heavily.
Real investors try to keep their behavioural biases under control and create amazing wealth over long term.
So in which camp you will like to be classified???
Pretend or Real Investors. Be wise !. Please remember Wealth cannot be earned, it can only be created.