Stock market in particular is a fascinating place … For most of the market participants, its their bread earner…. People (Especially fund managers) love to boast about their “Beating the market” history … The business they get is by “drumming their own trumpet” across to attract naive money pouring machines (naive investors)…This ‘beating’ thing has been long ingrained in everyone’s brains as they think that it is the only performance indicator to show their edge, intelligence, or value over the ‘beaten’ones.
So, while getting a salary hike of 10% would make one very happy, knowing that the colleague got a 15% raise would make the same person feel miserable. Remember 3 Idiots? “It feels bad when a friend fails, but it feels even worse when he comes first.” This thought process is seriously present when it comes to investing in stock markets.
I, being avid network connector, get in touch with many market participants and all they are talking about their own successes as well as the bigger part : complain ” Usne ye stock me bahut paisa banaya, How did I miss that stock” Rather than being happy about whatever that person has earned the person thinks how did I not earn that much.. How could I under perform 🙂
I just laugh on such people. How the hell on the earth can you not miss a stock which will always invariably be running faster than stocks you have in your portfolios (of course with meaningful allocations).
Ask guys across street who missed Eicher Industries, Page industries and they always say, “Ye mere samane multibagger ban gaya” , comfortably forgetting that they also earned decent money in their portfolio stocks as well (not as much as Eichers/Page). The ultimate thing is that your core philosophy must not be to beat the market, but to meet your financial goals with comfort. Trying to beat the market is like climbing onto a treadmill that doesn’t have STOP button. It eventually exhausts you, and you come flying off it, flat on your face!
It’s difficult to be CONTENT but, if you can’t do this, then I will guarantee you, your life will become MISERABLE even if you earn hell lot of money from market.Your investments just need to earn you enough (while protecting your capital) to meet all your long term financial goals and live your life happily. That’s it.
As I always say, You need to sow seeds (invest regularly), plough (review),nurture(patience) ,water the plants (adding investments)….One day the plant will become TREE which will give you fruits(dividends), happiness (you can buy the dream cars, homes ), protection(Against ever-rising inflation) and ultimately WEALTH which will let you live as you wish !!!
Happy investing, with love, Midcapmantra.