Expectations in investing
Hi, straight into it.
What kind of expectations should you have when investing in the stock market?
It is fair to say that around 70–80% of people have unrealistic expectations when it comes to investing. Most people think that you can make money from investing in a few months or even a few years. The thought process you should have should be: what will this asset produce in 10–20 years? A long term mindset in creating wealth with investing is how you make a huge amount of money in the stock market, all good things take time.
Why do people have unrealistic expectations?
Most people are sold on the idea that making money in the stock market is something that can be done short term and this is simply not true. You make money in the long term as long as the asset has the potential to create greater value than it is monetarily worth. Switch your mindset, long term thinking > short term thinking. Do not think that it is easy to make money short term unless you are trading, but trading is not something that you will not learn about with Jagdip’s blogs.
Investing is always a game where the patient win.
The stock market is simply a device to transfer money from the impatient to that patient, have patience- find value and be willing to hold the stock for a minimum of 10 years if you are seeking to attain above average results in the stock market.
Buffett says it best: “You should not care if the stock market closes for 10 years”
Investing is a fantastic reward system for the patient, start thinking about how you can create wealth in the long term, not short term.
Ignore boredom and practice patience:
Investing summed up:
- Practice patience
- Take your time when finding investments
- Seek to find gems and beat the market, don’t go for average
- Have discipline
- Be greedy when others are fearful
- Buy only what you understand
- Invest in cheap, obscure and undervalued securities
- Become a learning machine
- Invest with confidence, trust your gut and intuition
- Never think its easy, it takes time to find gems
Thank you for reading, have a great week ahead,