Thread by @caswapnilkabra

You do not have to be intelligent to be a good investor. You just need to be disciplined.

A small thread that explains how even the most intelligent minds too lost a lot of their wealth in stock markets.

@Vivek_Investor, @FI_InvestIndia, @ms89_meet

‘Isaac Newton’ and ‘Albert Einstein’ are undoubtedly two of the most genius people the world ever witnessed, but they were lousy investors.

A small anecdote from Benjamin Graham’s classic book, ‘The Intelligent Investor’, sums up the fact that you do not have to be a genius to make fortune in stock market.

>Back in the spring of 1720, Sir Isaac Newton owned shares in the South Sea Company, the hottest stock in England.

Sensing that the market was getting out of hand, the great physicist muttered that, ‘he could calculate the motions of heavenly bodies, but not the madness of the people.’

Newton dumped his South Sea Company shares, pocketing a 100% profits, totaling £7,000.

But, just months later swept up in wild enthusiasm of the market, Newton jumped back in at a much higher price and lost £20,000 money. For the rest of his life, he forbade anyone to speak the words ‘South Sea’ in his presence.

Here is how the chart of South Sea Company looked,

In 1921, Albert Einstein won Nobel Prize and he earned a lot of money. He invest all this money in stock market and he lost almost all his money in the stock market crash of 1929.

Hence, I say, investing is *less* of Mathematics and *more* of Behavioral Economics.

Investing is no rocket science. It is just plain, boring and bland.
But, are we patient enough to be plain, boring and bland? That is a main thought one needs to ponder upon!

The End.