Investing like Entrepreneurship is hard. 8 out of 10 don't make it in the long run. The 2 who succeed write realms about their path providing fodder to the next 100 aspirants.
This is not to discourage potential aspirants but to just say that both in Investing and when you are starting off as a Entrepreneur, have realistic expectations.
So, what is a realistic expectation when it comes to Investing? Forget 12%, 24% or even doubling. If you can survive the first few years without ending in negative capital, you have beaten the majority of your peers. Its just survival and yet its understated.
If its just survival and hoping that my capital is same after 5 or even 10 years, why even bother maybe the question you have in mind. Why not just invest in a Mutual Fund and be done with it?
You can and is what is followed by the vast majority, but if you really want to succeed as a investor, you will need to learn to swim in the Ocean and just just in a 4 feet tank where your chances of drowning are next to nil.
Most investors extrapolate reasons for their success calls while ignoring the failed calls. Success many a time is basically random - you just were lucky to be caught in the wave.
Its the failures that actually help you in the long run for they provide you with the knowledge of what went wrong and why it went wrong. Keep noting down the reasons for failure and before long you have a pattern.
One key attribute that is overlooked by most (myself included) is Education. By Education, I don't mean the 1 or 2 day courses that are offered today.
You cannot really understand business unless you study businesses or better still launch one yourself. The later is not easily achieved by most, the former is much more accessible and possible.
Check out the Education of Mutual Fund Managers. What is the common denominator? How about Research Analysts, what is the common denominator there?
I have friends who have succeeded despite not being "well" educated. But they are exceptions to the rule. Assume you are not an "exception"
Investing in many way is like Chess but with the difference of rather than you playing against one opponent, you are playing against every other player out there. This is what is the reason for the low odds of success.
For me, it has taken a very long time to come to a stage where I now think I have a realistic chance of succeeding in the coming years and decades.
But if I knew this when I entered, I doubt I would have wished to enter this arena in the first place. Thankfully keeping low expectations has helped me survive till now.
Each one will have a different time-frame to reach a point where he is sure that he will not just survive but thrive. But don't begin your journey hoping for miracles for that sets the stage for eventual failure. #EOT
