INVESTING NEEDS MORE EQ THAN IQ:

Someday last week when I was about to leave for a client meeting, I got a call from my childhood friend Rajeev. We started speaking and then suddenly Rajeev told me, “Sam, don’t forget to catch up Rakesh Jhunjhunwala interview on CNBC.” I replied, “What is so special about that?” Rajeev was surprised by my nonchalant reply. But I continued, “Have you learned cricket by watching Tendulkar play? Now Rajeev was on the same page.
We forget to know ourselves and try to imitate legendary investors blindly. We don’t know their risk appetite, risk tolerance and temperament. Know your temperament, understand your risk profile first. One shirt does not fit all that’s why we have  XL, XXL etc. In the same manner we need to find investing style and process suitable to us.

The biggest challenge now is to be careful from being greedy. Fear is easily recognisable; remember 2008-2009. But greed is very difficult to find; Harshad Mehta scam, Ketan Parekh, Y2K, Power & Infra 2007 etc.

Do the basics right and you will be through.

“It is not necessary to do extraordinary things to get extraordinary results.”         – Warren Buffett

Dear readers, it’s not your IQ but your EQ which will decide your successful financial planning. 😌

Happy Investing !!

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s