The wisdom behind these words are obtained by reading investment masters.
1) Be it exercise or investing; habit formation is extremely important. What we repeatedly do with effort, at some point becomes a natural habit.
2) There is nothing exciting in staying the course with patience and discipline. It’s dull and boring. That’s why only few make it.
3) Markets are not obliged to provide the returns we seek to achieve our financial goals. Save more. That’s what you can control.
4) Not having to worry about money is a big liberation. That’s why financial independence matters.
5) We don’t see time as a good risk management tool. For a well diversified portfolio, time reduces the probability of permanent loss of capital.
6) All long term investors, knowingly or unknowingly, use time as a risk management tool.
7) The biggest mistake we make is letting short term information cloud our long term judgement. Can’t see the forest for the trees.
8) No investment strategy can be a substitute for inadequate savings. If you save more, even a mediocre strategy would help reach your goals.
9) Money flows in after good performance. It flows out after bad performance. That’s why chasing performance rarely helps.
10) But for volatility, everyone would get rich from equity. Life cannot be that easy. Accept volatility. You’re on your way to wealth.
11) Real financial freedom is not in what we are able to buy. It is in what control we have over our time.
12) Our life span is getting longer while investment span is getting shorter. This strange behaviour is an impediment to wealth creation.
13) Knowledge is about the past. Analysis has assumptions about future, which is unknown. Behaviour is what we control and is our biggest edge.
14) We cannot predict our own future. Still we try predicting macros, interest rates, markets & commodity prices.
15) During bull market, everyone would be a long term investor. The real test comes only in a bear market, where most of us fail.
16) Because of human nature, only a small percentage of people would make it big in the markets. Aspire to be part of this tiny minority.
17) I want to deserve the money I earn by making our clients part of successful tiny minority in the markets.
18) In a market dominated by short term thinking, long term orientation is a huge competitive advantage. Play to your strengths.
19) When we borrow & buy a house, we tie up two decades of future income. This is what preventing even high income earners from creating wealth.
20) Don’t call yourself a long term investor if you’ve not stayed invested in a bear market.