This thread is about lessons passed by legendary investors.Investing isin't an easy game but if u master it,u can make money while sleeping.
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The issue is people in the anticipation of quick gains buy stocks which are hyped in media or are in FnO or which are exciting!Sadly in investing boring is what makes big returns and exciting mostly ruins.Ex-Suzlon,Rcom,Yesbank etc
Do your research & avoid HOT tips
They call it circle of competence.Buffet doesn't understand cryptos and hence stays out of it.A non techie investor doesn't understand the tech so prefers to stay out of it.Complexity becomes fad and fad becomes bubble.
80% of investing is common sense yet we do mess up.For instance historically it is known that people across globe can never get rid of smoking & drinking+ govs get good revenues from here.Yet a 40% temporary decline scares people & they book loss!
Heard the fancy Wipro and Royal Enfield share story : 10,000-700 cr!Well that didn't happen overnight.Compounding doesn't happen in a day or 3-4 yrs,it takes time & patience:Ofcourse both of which is missing these days.
After 5 yrs of trading if a trader makes a GROSS crore on big cap and an investor makes just 68L.On social media trader would be rich but in real life investor will be richer+peaceful.
Why?STT+Brokerages+cess+30%Tax+audit-Dividends-Splits/bonus-Peace of mind!
REALITY
Think like a business owner.A business doesn't grow overnight.Anything you do just for 1-3 yrs is just a kind of swing you played well.Businesses with deep moat and competitive advantage are the once which eventually build wealth.