InvestorQ : What are the 5 successful mantras of investing?
Purvesh made post

What are the 5 successful mantras of investing?

shivangi Arora answered.
3 years ago
All you need to remember is investing should be started as earliest as possible. If this is overlooked than your savings will depreciate in value.
Investment without a plan is dangerous for your wealth. An investor must follow his/her life cycle. Another factor is of reading the benefits, options, and process of the investment plan very carefully.

R Venkataraman answered.
3 years ago

After all these years, I have begun to appreciate the wonders of investing. I would call it something between science and art, or maybe both. There also is a subject that talks deeply about the Psychology of Investing but we won’t get into it. I have been investing since the year 1991, as soon as I began my career in ICICI Ltd - the Development Finance Institution.

I must confess, I have made a couple of mistakes myself. Just like all other enthusiastic investors, I read and read a lot around investing and also exchanged notes with many investors in India.

I have not yet paid homage to the sage of Omaha by going to his AGM (which also betrays the fact that I have yet to own a Berkshire share).

There are some aspects of investing that I would like to share with everyone:

  • Compounding is a brilliant concept but the problem is that we are not patient and this is why we lose. Then, of course, there is greed and then there is self-confidence. Every investor has one HDFC or Infosys or Maruti kind of story where they booked profits too early and did not hold it for at least 10 years or more. In hindsight, you will know whether the share you have bought is next HDFC or not. For now, don’t overthink it. Let compounding do its deed, it’ll do wonders to your portfolio.

  • Start saving early and monthly. Your mom was always right. She asked you to save every month.

  • Look out for the dogs in your portfolio. Therefore, over the long term, your portfolio returns will mimic the overall market. It’s absolutely difficult to generate substantial alpha over the market. Therefore, do not be too greedy. Over time, you too will begin to appreciate why devotees pay homage to the sage of Omaha.

  • More than individual trades, asset allocation is important. If you are sincere about it, over time, you'll do very well even if you feel that your neighbor is smarter than you are. Have a target debt-equity mix and follow it diligently. Write it in your dairy and when temptations strike – read your notes. Use mutual funds for equity and debt, if you cannot buy individual stocks.

  • Do not compare. Comparison is not a nice thing in life, in general. And especially when it comes to trading, do not fall into the comparison trap. No one shares their loss-making trades. It is human nature to talk or boast about winners, and hide losers. Such comparisons only make you sadder and not wiser or richer.

    Listen to everyone’s successful stock picks and forget about them. Come home and stick to your asset allocation and over time you will do at least as good, if not better. And as I mentioned at the start, let compounding work its wonder for you.


Pratik vyas answered.
3 years ago

"Start saving early and monthly. Your mom was always right. She asked you to save every month."

This is extremely important especially for freshers. Do remember every rupee saved is a rupee earned.

Start saving from day 1 and put your money to good use by investing and watch the magic of compounding unfold right before your eyes!