Skip to main content

Long term investment

Both long term and short term investment are hard. Both requires a specific set of skills. When it comes to long term investment, patience is must. Because the money when invested for a decade needs no withdrawal to see the real compounded growth. Everybody see this power of compounding and they land into investment as soon as they can. Those people with real poor mindset always rely on their emotions for placing further entries and exists.
If we look at those who had succeeded and made a massive wealth, we could see that one of the most important thing that aided their process of wealth creation is holding. They have this ground level patience and they hold for decades. That is a skill. Waiting for the returns from an investment that was initiated decades before.
It is very much easy to see investment as an option with less work and preperation. But it is not. It requires skills to analyse a company fundamentally. Among thousands of companies, the one with right set of values gets investments from us. That requires a great effort. And a long term investor should not fall into the trap of short term fluctuations.

Labels:

Comments

Post a Comment

Most viewed

Keep up with trend

It won't matter much whether the company is at the number one position in market cap, if it fails to keep up with the trend, it will go out of the business. there are a lot of examples in front of us. This busting off will result in the rise of the next big thing. The general motor was once the market cap champion. But the rise of the internet and technology brought thousands of companies, which now rules the entire business era. And companies in this field is now valued extremely high than any industry. The Internet gave access to the information that is once only available to the presidents and prime ministers to a common man. this is revolutionary and it changed the world. the world order keeps changing. every major change leads to revolutions. when this happens successfully with business, it is the next big thing.
Post a Comment
Read more

Traveling

Traveling may be expensive, but it offers a lot of exploration. We often tend to backnoff from travelling due to tightening money. Travelling should not be neglected. It gives us plenty of experiences and memories.
Post a Comment
Read more

Trusting the guts

 Following the guts feels like a task that is impossible to crack. But once we follow our intuition and persistently find the right, it always allows us to create the happiness and satisfaction we wish for. There will be the process of trial and error, but it is worth giving it. 
Post a Comment
Read more

Pandemic accelerated business

The pandemic like we know did more adverse effect than good ones. But it also made some industry to thrive. Mostly digitally pivoted industries found a rapid growth during these fields. When the whole world were instructed to be in home, the demand for online services soared. The entertainment industry which were struggling to survive made to the top. Thousands of digital based startups reached unicorn status. This is clear indication that where the world is going and how the future business model should be. Everyone knows that the world belongs to digital giants in the future. All of us are somehow spending hours and hours in the internet. Researchers indicates that this number will only go up. This is one of the reason we see a lot of tech startups founded by non techies. They saw the opportunity and tried their own hands. Even industries focusing of physical or tangible product and services are integrating their business to the internet. What this pandemic did was it accelerated...
Post a Comment
Read more

Correction happens

 Valuation should be taken into account before considering the investment. Once you find the company as overvalued, then you should stay away from it at least till correction. Correction is inevitable and for whatever it is, correction will happen sooner or later.
Post a Comment
Read more

Ideas surpassing the pull

 When we see people taking about the things that is not yet discovered or existing, we often refer them as nuts. Some of the things they were referring makes least sense. And the probability of making it to the real world is almost null. These crazy ideas never made the mediocre to astonish. Instead it induced them to criticize and drag it to the ground over time. Yet some ideas turned real and surpassed the resistance . This is not uncommon.   Most of the ideas still gets reverted by mediocre pull. This world would have been a different one if there is no pull. But these pulls are, like some other barriers, meant to cross. Almost everything new has to surpass this resistance. Of it is strong enough, it will break the barrier. The strength of idea is a by product of the source where it born. A rigid determined source can often disrupt the pessimistic ambient field. Many ideas backed by less driven person dies with fear. And couple of years later, someone with powerful mindset...
Post a Comment
Read more